History of Pepsi-Cola

In 1892, Caleb Davis Bradham opened a drug store called Bradham’s Pharmacy. He founded it as a fun to mix delicious a soft drink as it was to make medicines. His soda fountain grew popular as townspeople gathered to socialize.

In 1893, Bradham combined sugar, caramel coloring, rare oils and extracts a fruit juices. This created a syrup. The syrup would be mixed with carbonated water to make a soft drink. The name ‘Brad’s Drink’ didn’t convey the nature of the beverage and he decided to name it ‘Pepsi-Cola’.

In 1898, Bradham wisely bought the trade name ‘Pep Cola’ for $100 from a competitor from Newark, New Jersey that had gone broke.

Bradham filed incorporation paper for Pepsi-Cola Company with the state of North Carolina in 1902. A year later, the US patent Office granted Pepsi-Cola a trademark. By then, Bradham had decided that he needed to move his operation to a larger building.

At first Bradham mixed his own syrup, which was sold only through soda fountains, but he soon realized a greater market was to be had in bottling Pepsi, which people could drink and transport anywhere.

Pepsi-Cola went bankrupt in 1923 due to fluctuations of sugar price. In 1931, Pepsi-Cola was bought by the Loft Candy Company.
History of Pepsi-Cola

Charles G. Guth and Pepsi Cola Company

In 1902 Caleb Bradham incorporated the Pepsi-Cola Company and started a manufacturing operation.

The company was certified bankrupt on 1923. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured.

Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. At the time Charles Guth became Loft’ president, Guth and his family owned Grace Company, which made syrups for soft drinks in a plant in Baltimore, Maryland. Coca-Cola Company supplied Loft with cola syrup.

Loft operated over 130 soda fountains in the greater New York area. Guth believed that with that kind of volume, Loft deserved better pricing. Coca-Cola believed that Guth had no choice but to buy their syrup, and refused to offer any discount.

He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains.

Guth entered into an agreement with Roy Megargel to acquire the trademark of Pepsi and its formula and form Pepsi-Cola Corporation.

With just handful of bottles in 1934, the number grew to 315 Pepsi-Cola bottlers in 1939.

He later was sued by his partner and claimed that Guth had misused corporate assets and that his Pepsi stock should be handed over to Loft.

Loft filed a suit in a Delaware state court against Guth, Grace and Pepsi, seeking their Pepsi stock and accounting. After nearly three years of legal procedures, the court ruled that Guth, Pepsi-Cola holding belonged to Loft. Loft became a Loft subsidiary and Walter Mack was chosen to be Pepsi’s new President and Guth continuing as general manager.

After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.
Charles G. Guth and Pepsi Cola Company