Pepsi: The Story Behind the Brand

Last updated: 9 October 2026 · Category: Soft Drinks

Introduction

A drink made at a small-town pharmacy became a brand recognised far beyond the place where it began. Pepsi’s journey connects a soda fountain in North Carolina with supermarket shelves, restaurant counters, music campaigns and a worldwide contest for attention.

The liquid is only part of that story. Pepsi also sells familiarity: the label a customer recognises, the flavour they expect and the association they bring to a meal or celebration. Its history shows how distribution and advertising can turn a repeat purchase into a cultural presence.

Yet the journey was never a straight climb. Its founder lost the business. Product experiments came and went. Advertising occasionally crossed a line. Today, Pepsi has to compete for customers while responding to questions about sugar, packaging and the environmental cost of everyday convenience.

Pepsi at a Glance

Origins: Brad’s Drink was created in 1893; the Pepsi-Cola name dates to 1898.
Founder: Caleb Davis Bradham.
Country of origin: United States, beginning in New Bern, North Carolina.
Parent company: PepsiCo, formed in 1965 by the merger of Pepsi-Cola and Frito-Lay.
Parent company headquarters: Purchase, New York, United States.
Industry: Non-alcoholic beverages; the parent also operates a major food business.
Main brand offerings: Cola, diet and zero-sugar colas, flavoured variations and market-specific new products.
Parent leadership: Ramon Laguarta, PepsiCo chairman and CEO, verified on 9 October 2026.
Official brand website: pepsi.com.

Pepsi is a brand; PepsiCo is the company that owns it and many other brands. A PepsiCo sales figure therefore does not describe Pepsi cola alone. Pepsi’s official history, brand FAQ, 2026 PepsiCo proxy filing.

The Founder and Early Days

Bradham was a pharmacist in New Bern. His pharmacy had a soda fountain, an ordinary part of many drug stores at the time. He developed a drink that became known locally as Brad’s Drink and then gave it the Pepsi-Cola name. New Bern Historical Society’s account, Pepsi’s brand history.

The setting matters. This was a business built through repeated local encounters, not through an immediate national launch. Customers could try the drink, discuss it and return for another. A founder could learn directly from the people buying the product.

Turning that popularity into a larger business required a repeatable system. Syrup could be supplied to other sellers, while bottles made the drink portable. Bradham developed bottling relationships and franchises as demand expanded. New Bern Historical Society.

A franchise in this context means allowing another operator to produce or sell within an agreed commercial arrangement. It lets a brand reach more places than one founder could serve personally, but it also makes consistency important. The name on the bottle has to promise an experience that travels reliably.

The Name, Logo and Brand Identity

The documented change from Brad’s Drink to Pepsi-Cola happened in 1898. Accounts connect the name with ideas about digestion, but an old marketing association should not be treated as evidence that the drink has a medical benefit. This is a brand history, not a health claim. Pepsi’s history, New Bern Historical Society.

Pepsi’s visual identity gradually moved from elaborate lettering toward the red, white and blue globe familiar today. In 2023, the company announced a redesign placing the name inside the globe, using a stronger blue and adding black to the wider system. It linked the changes partly to its zero-sugar proposition. Pepsi’s 2023 design announcement.

The practical job of the design is recognition. A shopper should identify the product quickly on a crowded shelf; a restaurant customer should recognise the mark on a dispenser or cup. A digital advertisement has the same problem in a smaller, faster setting.

The globe does not need a grand hidden meaning to perform that job. Claims about secret symbolism require evidence. The documented design priorities are more useful than an attractive myth.

The First Products

The original product was a fountain drink. Bottling changed how it could be sold, taking the experience beyond the pharmacy counter. A packaged drink could be carried home, stocked by another retailer or supplied where no soda fountain existed. New Bern Historical Society’s history.

This illustrates the difference between making a good product and building a consumer brand. The recipe creates the experience; packaging and distribution make that experience available. Without both, a popular local drink can remain a local drink.

The first products also required customers to trust a name. People buying a sealed bottle could not judge its contents before opening it. The label became a shorthand for an expected flavour and standard.

Over time, Pepsi’s product story became less about one way of serving cola and more about offering the same brand in different formats and situations. That flexibility remains a basic part of the business: what suits a restaurant counter may differ from what suits a household refrigerator.

Struggles and Turning Points

Bradham’s early success did not protect him from the cost of ingredients. After wartime disruption, he bought sugar expecting prices to rise. Prices instead fell, leaving the business carrying expensive stock. His company entered bankruptcy in 1923, and he returned to pharmacy work. New Bern Historical Society’s account.

The event is a reminder that customer demand and financial survival are different problems. A recognised product can still fail when purchasing decisions, costs and selling prices no longer fit together. Entrepreneurship involves managing uncertainty behind the scenes as well as persuading people to buy.

The Pepsi brand survived beyond its founder’s ownership. A later major turning point came in 1965, when Pepsi-Cola and Frito-Lay combined to create PepsiCo. Pepsi’s official FAQ.

That merger connected drinks with a large snack business. It broadened the organisation’s relationship with retailers and eating occasions. It also means that modern Pepsi history must be read carefully: the successes and difficulties of the diversified parent are not always the successes and difficulties of the cola brand itself.

The Products That Changed Pepsi

The Original Cola

The original cola remains the reference point for the brand. Its customer problem is modest: providing a familiar flavoured drink that is easy to obtain and serve. There is no need to present that everyday use as a technological revolution.

Its importance lies in repeatability. A consumer product business benefits when customers know what they are choosing and are willing to choose it again. Different pack sizes and serving channels bring that core proposition to different occasions.

Diet Pepsi

Diet Pepsi was introduced in 1964. It extended the name to people seeking cola without the sugar and calories of the regular version. That expansion showed how one brand could address different preferences without abandoning the category in which it was known. PepsiCo’s historical annual report.

The underlying branding challenge is balance. An alternative must be recognisably part of the family, yet clearly labelled so customers understand what is different. Similar packaging should not obscure meaningful ingredient differences.

Zero-Sugar and Flavoured Variations

Pepsi Zero Sugar and Pepsi Max offer further sugar-free cola choices, with names and formulations varying across markets. Flavoured versions add another reason for customers to try the brand. The local label remains the appropriate source for ingredients and nutritional information. Pepsi’s product FAQ.

Extensions can attract new buyers, but too many similar names can create confusion. Their value depends on whether the difference is understandable and useful to the customer.

Crystal Pepsi

Crystal Pepsi, introduced in 1992, offered a clear cola appearance. Pepsi’s own account says the original product was discontinued in 1994 and later returned through limited releases. Its lasting recognition did not make it a permanent part of the main range. Pepsi’s Crystal Pepsi FAQ.

The lesson is that curiosity and lasting demand are different. A striking launch can win attention; repeated purchases decide whether a new product becomes a durable business.

Why People Choose Pepsi

Some customers choose Pepsi because they prefer its taste. Others choose it because it is available at the restaurant, sold at a convenient price or associated with family habits. These reasons can overlap without being universal.

A familiar drink can also carry memories: a meal after school, a match watched with friends or a celebration. Advertising tries to attach the brand to those feelings, but customers’ real experiences give the associations their depth.

Taste comparisons should be treated carefully. Preference is affected by the individual, serving conditions and the version being compared. A promotional test is not proof that everyone will prefer the same cola in everyday life.

There are also straightforward limitations. Regular versions contain sugar, and some products contain caffeine. People may prefer water, another beverage or a different formulation. A brand’s popularity does not make it suitable for every person or occasion. Pepsi’s ingredient and nutrition FAQ.

How Pepsi Makes Money

Pepsi belongs to a beverage system involving concentrate or syrup, bottling, packaging, distribution and sales through retailers and food-service outlets. PepsiCo operates both company-controlled and franchise-related arrangements; their form differs by market. PepsiCo’s 2025 annual report.

Concentrate is a strong flavouring mixture used in producing the finished drink. Bottlers turn that into packaged beverages or supply products into serving systems. Distribution then places the drink where customers can buy it.

This system explains why availability is a competitive asset. A customer cannot choose a brand that is absent from the shelf or menu. Advertising creates interest, but manufacturing and logistics must convert that interest into a product within reach.

PepsiCo’s wider business adds snacks and other beverages to the relationship with customers and retailers. Its annual report combines multiple brands and operations. Assigning the parent’s entire revenue to Pepsi would therefore exaggerate the scale of the cola alone. PepsiCo’s reporting.

Marketing and Brand Storytelling

The Pepsi Challenge began in 1975, using blind tasting to invite people to compare cola without seeing the labels. The campaign made rivalry participatory: customers could take part rather than simply watch an advertisement. PepsiCo Design’s retrospective.

The company revived the idea around zero-sugar cola in 2025 and announced more tour stops for 2026. Its published results are company promotional claims about those tests, rather than an independent universal ranking of taste. Pepsi’s challenge update.

Pepsi’s broader storytelling often links the drink with entertainment, sport and contemporary culture. The aim is to make a routine product feel present in moments people care about. A celebrity can bring attention, but attention works best when the association feels credible.

Packaging is another advertisement that travels with the customer. The 2023 identity was designed for both physical products and digital experiences, showing how a consumer brand has to remain recognisable across very different screens and surfaces. Pepsi’s visual identity announcement.

Competitors and Position in the Market

Coca-Cola is Pepsi’s most familiar cola rival, but the competition is wider than two companies. Other colas, flavoured soft drinks, bottled water, energy drinks and locally popular beverages all compete for occasions and spending.

Keurig Dr Pepper adds another major business to the landscape. Pepsi’s official FAQ clarifies that Dr Pepper is not a PepsiCo brand, even though distribution arrangements can involve different companies’ bottlers in particular markets. Pepsi’s ownership explanation.

PepsiCo differs from a company focused primarily on beverages because food is a substantial part of its portfolio. That can shape retailer relationships and the organisation’s overall strategy. It does not automatically establish that Pepsi cola has a stronger position in every market.

A fair comparison needs a defined measure and date. Global parent-company revenue, local cola sales, brand recognition and personal taste answer different questions. Treating them as interchangeable produces a misleading account of competition.

Leadership and Company Culture

Bradham’s early business depended on hands-on product development and local selling. Today, leadership involves a global organisation, bottling relationships, large retailers, supply chains and a portfolio that extends well beyond his invention.

Ramon Laguarta is PepsiCo’s chairman and CEO as verified on 9 October 2026. His leadership belongs to the parent company, rather than a separate listed corporation called Pepsi. PepsiCo’s 2026 proxy filing.

The company’s 2025 report emphasised strengthening its North American business, international growth and opportunities outside the home. These are stated business priorities, not independent proof that each initiative has achieved its intended result. PepsiCo’s annual report.

For the brand, good execution requires cooperation between creative and operational work. An appealing campaign must fit the product and be supported by stock, quality and distribution. Brand culture becomes visible in that consistency.

Criticism and Controversies

Added sugar is a central concern around regular soft drinks. The World Health Organization’s guidance links reducing free-sugar intake with addressing unhealthy weight gain and tooth decay. This concern applies to dietary patterns and product categories, rather than establishing that one isolated drink determines someone’s health. WHO’s sugar guidance.

Pepsi offers diet and zero-sugar alternatives and publishes ingredient information. Those are relevant responses to demand for choice; they should not be presented as a complete answer to every nutritional concern. Pepsi’s FAQ.

In 2017, Pepsi withdrew a Kendall Jenner advertisement after criticism that it trivialised protest and social-justice issues. The company apologised. The outcome is documented; the episode shows how trying to borrow cultural meaning can fail when the portrayal feels superficial. TIME’s report on the withdrawal.

Packaging creates another responsibility. PepsiCo updated its sustainability goals in 2025, citing practical constraints including infrastructure. Its packaging disclosures describe targets and progress, but recyclability by design is not the same as proving that every container is collected and recycled. PepsiCo’s revised goals, packaging disclosure.

Pepsi’s Global Influence

Pepsi helped make a packaged drink into a cultural competitor, with an identity that could be expressed through music, sport, colour and a repeated challenge to a familiar rival.

It did not invent cola, bottling, celebrity endorsement or international advertising. Its influence lies in combining those methods into a recognisable brand that customers encounter in many different settings.

The story also demonstrates the power of distribution. A famous name becomes part of everyday life through ordinary practical decisions: what a shop stocks, what a restaurant pours and what a household buys.

Its influence is mixed. Convenient packaged beverages create business and employment, while their ingredients, packaging and marketing invite scrutiny. A complete brand history needs to hold those realities together rather than choosing only the celebratory version.

Pepsi Today and Its Future

As of 9 October 2026, Pepsi remains a major brand within PepsiCo, with the original cola alongside diet, zero-sugar and other variations. The official range also includes Pepsi Prebiotic Cola. A product’s presence in a range is verifiable; broad promises about its health effects require separate evidence. Pepsi’s current FAQ.

The announced continuation of zero-sugar taste challenges shows one current marketing direction. PepsiCo’s wider priorities include international growth and improving execution across its business. Neither announcement guarantees a particular future market share. Pepsi’s 2026 challenge plans, PepsiCo’s annual report.

The opportunities are familiar taste, broad availability and useful product choices. The challenges are shifting preferences, affordability, competition and pressure to reduce the consequences of packaging and production.

The brand’s future will depend on making those practical choices credible. A campaign can introduce a new chapter, but customers and communities judge the products and outcomes that follow.

A Concise Timeline

1893: Bradham creates Brad’s Drink in New Bern.
1898: The drink becomes Pepsi-Cola.
1923: Bradham’s company enters bankruptcy after damaging sugar-cost decisions.
1964: Diet Pepsi extends the brand into low-calorie cola.
1965: Pepsi-Cola and Frito-Lay merge to create PepsiCo.
1975: The Pepsi Challenge launches.
1992: Crystal Pepsi introduces a clear cola appearance.
2017: Pepsi withdraws its criticised Kendall Jenner advertisement.
2023: A new globe-and-wordmark visual identity is announced.
2025–2026: Zero-sugar taste challenges become a renewed marketing focus.

Sources: Pepsi’s history, New Bern Historical Society, Diet Pepsi’s historical introduction, Pepsi FAQ, PepsiCo Design, TIME, design announcement, challenge update.

Lessons from Pepsi’s Story

Pepsi shows that a brand can survive the loss of its original business and founder. Recognition has value, but survival depends on ownership, operations and financial decisions as well as a name people remember.

It also shows why branding must connect with reality. A new logo cannot replace product quality. A cultural campaign cannot borrow meaning without understanding its context. A sustainability target is a commitment that needs measurable follow-through.

For entrepreneurs, the strongest lesson is to build the whole system around a repeat purchase: a product people understand, a dependable way to deliver it and a responsible explanation of what it offers. Attention starts the conversation. Trust and execution keep it going.