2023-09-06 08:00:35
BarcelonaA few teaspoons of sugar, a few drops of kola nut extract, a touch of nutmeg, a dash of lemon oil and a handful of secret additives. It’s 1893 and, protected by a white coat, pharmacist Caleb Bradham seems to have stumbled upon the perfect dose for his new syrup. From the back room of his pharmacy, he calls the assistant and grabs a bottle. It is at this moment when the young James Henry King becomes the first person in the world to take a sip of Pepsi. Now, neither of them is aware of this milestone. First, because the drink is not yet called Pepsi and, second, because neither Bradham nor King imagines the impact that the invention will end up having. What, for them, is just a remedy to help the clientele to digest better will be the seed of PepsiCo’s flagship soft drink, the corporate colossus that today sells the drink around the world and that in 2022 will have a turnover of 86,392 million euros .
“The drinks we now call refreshments they have their origin at the end of the 18th century and appeared as medicinal solutions for stomach problems”, contextualizes Carolina Luis-Bassa, director of the UPF – Barcelona School of Management’s master’s in marketing. Throughout the 19th century progressively incorporating gaseous components and stabilizing additives, but also sodium bicarbonate, which made them known by the name of soda. “They were given medicinal functions against heartburn, indigestion and even to stop gout, reduce fever or treat nerve disorders,” continues the expert. To improve its taste, pharmacists sweetened their formulas. “They had such a nice flavor that they immediately became popular,” he says.
Bradham’s syrup quickly conquered the most curious palates of the neighbors of New Bern, the small town in North Carolina (United States) where he had the pharmacy. By 1898 the anger had already spread far beyond and the pharmacist was rubbing his hands. “Besides the good taste that drinks like yours had, the key ingredient in turning syrups into mass-consumable, everyday soft drinks was marketing,” reveals Luis-Bassa. In fact, in 1898 the creator realized this and already took a first step in this direction: he renamed the drink Pepsi Cola, which referred to the digestive enzyme pepsin and kola nuts and that it was more attractive. In 1902, he officially registered the brand, founded PepsiCo, and just a year later, rented a warehouse to transform it into a bottling plant. “It was clear that the product could have potential,” the expert continues.
A race with undercuts
If you were able to drink a Pepsi to cool off this summer, you don’t have to thank Bradham’s alchemical success alone. Barney Oldfield, a famous racing driver, also played an important role. “The pharmacist was aware that he had to reposition the medicinal mixture towards a refreshing drink, and to do so, he incorporated the pilot into the marketing campaign,” he explains. In 1909 the runner promoted the drink as “refreshing, invigorating and bravado” and spreading to the four winds that it was “a pleasant stimulant to prepare for a race”. One of Pepsi’s first slogans was born from that advertising campaign: “Delicious and healthy”. A year later, PepsiCo had already opened new offices in its native New Bern and had spread across 24 American states, with 240 franchises.
Now, Pepsi’s story also has less sweet episodes. In 1923 the global rise in the price of sugar dashed Bradham’s aspirations. The company declared bankruptcy. After several changes of hands, Pepsi ended up in the hands of Charles Guth, a candy magnate. With Walter Mack at the helm, Pepsi took off again. “They decided to reformulate the taste of the drink to assimilate it to that of Coca-Cola, its rival, which was much more widespread around the world – recalls the expert -. Standardizing the taste of the cola soda made it easier for them to ‘entrance to new markets’, he concludes.
Today, and still with the help of large advertising campaigns, the drink moves millions of liters – and tickets – all over the planet. In the pharmacy where it all began, every day a line of fanatics circulates, who want to take a sip of the drink in the same place where, 130 years ago, the first one was made.
The history of PepsiCo
1893
Pharmacist Caleb Bradham creates Brad Drink, his digestive syrup
1902
The Pepsi Cola brand is registered and sales skyrocket
1923
The price of sugar rises, Pepsi goes bankrupt and changes hands
2022
A century later, PepsiCo has a turnover of 86,392 million euros.
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