Pepsi

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A globally distributed cola and carbonated-soft-drink brand owned by PepsiCo.

Last updated October 23, 2026

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Overview

Pepsi is an American cola brand and the flagship carbonated soft drink of PepsiCo. Its origins are associated with Caleb D. Bradham, a pharmacist who sold a fountain beverage called Brad’s Drink at his drugstore in New Bern, North Carolina, beginning in 1893. Bradham renamed the beverage Pepsi-Cola in 1898. The name reflected the drink’s early positioning around refreshment and digestion, although modern Pepsi is marketed as a mainstream soft drink rather than a medicinal product. The early business operated through drugstore soda fountains, syrup sales and independent bottlers. Pepsi-Cola Company was incorporated in 1902, but the brand suffered severe financial difficulties during the early twentieth century. It entered bankruptcy in 1923 after losses associated with volatile sugar prices, and its assets and trademark subsequently passed through new ownership. Charles Guth, then associated with Loft, Inc., acquired Pepsi’s assets and had the syrup reformulated. Pepsi’s recovery was accelerated during the Great Depression by the introduction of a 12-ounce bottle priced at the same five cents commonly charged for a smaller Coca-Cola bottle. The “Nickel, Nickel” advertising campaign presented Pepsi as a value proposition and helped substantially increase sales. During the middle decades of the twentieth century, Pepsi expanded bottling capacity, modernized packaging and developed increasingly sophisticated mass advertising. The brand became more competitive with Coca-Cola under executives including Alfred Steele and Donald M. Kendall. Pepsi also pursued advertising directed toward African American consumers at a time when that market was often neglected by major advertisers. By the 1960s, the brand had adopted a strongly youth-oriented identity through “Pepsi Generation” advertising, entertainment partnerships and celebrity endorsements. A decisive corporate turning point came in 1965, when Pepsi-Cola Company merged with Frito-Lay to form PepsiCo. Pepsi remained a beverage brand rather than becoming a separately listed company, but it gained the distribution, marketing and financial resources of a diversified food-and-drink group. Its rivalry with Coca-Cola became known as the “cola wars.” The Pepsi Challenge, introduced in 1975, used blind taste comparisons to encourage consumers to compare Pepsi with Coca-Cola directly. The campaign strengthened Pepsi’s challenger positioning and became one of the most recognizable comparative-marketing programs in consumer-brand history. Pepsi also pursued international expansion. In 1974 it became one of the first American consumer products to be produced, marketed and sold in the Soviet Union through a notable barter arrangement involving Pepsi concentrate and Soviet-produced vodka. Elsewhere, the brand’s performance varied by market, with local bottling structures, regulations, flavor preferences and competing soft drinks shaping its position. The portfolio later expanded beyond the original cola. Major extensions include Diet Pepsi, introduced in 1964; caffeine-free versions; Pepsi Max in selected international markets; Pepsi Zero Sugar; and flavored products such as Pepsi Wild Cherry and Pepsi Twist. Pepsi has also tested limited editions, regional formulations and products positioned around reduced sugar or added functionality. Reformulations in some markets during the 2020s reduced sugar and used high-intensity sweeteners in response to health concerns, sugar taxes and changing consumer preferences. Marketing has remained central to the brand. Pepsi has used radio, television, film, music, professional sports, the Super Bowl and high-profile celebrity partnerships to maintain cultural visibility. It has also experienced serious marketing controversies, including the cancellation of a 1989 Madonna campaign, the 1992 Pepsi Number Fever promotion in the Philippines and the withdrawal of a 2017 advertisement featuring Kendall Jenner after criticism that it trivialized protest and ci…

History

Pepsi began as Brad’s Drink, a soda-fountain beverage created by pharmacist Caleb D. Bradham in New Bern, North Carolina, in 1893. Bradham renamed it Pepsi-Cola in 1898 and incorporated the Pepsi-Cola Company in 1902. Early distribution relied on syrup sales and independent bottlers, while the brand’s advertising emphasized refreshment and purported digestive benefits that reflected the marketing language of the period. Financial instability disrupted the early business. Pepsi entered bankruptcy in 1923 after sugar-price speculation and was later acquired by Charles Guth, whose business interests included Loft candy stores and soda fountains. Guth used Pepsi as an alternative to Coca-Cola syrup and commissioned a reformulation. The brand’s recovery during the Great Depression was closely associated with its 12-ounce bottle, which offered substantially more drink for the same nickel price commonly charged for a smaller competitor bottle. The “Nickel, Nickel” radio jingle converted that price comparison into a widely remembered advertising idea. Pepsi’s national and international bottling network grew during the following decades. The brand changed from a value-oriented image toward quality and mass popularity under Alfred Steele and later Donald Kendall. It also became notable for marketing to African American consumers and for using entertainment personalities to support a more inclusive and youthful image. Pepsi-Cola shortened its public-facing name to Pepsi during the mid-twentieth century, while its packaging and globe emblem underwent repeated redesigns. The 1965 merger with Frito-Lay created PepsiCo. This gave the beverage business a close relationship with a major snack-food operation and established the corporate structure that still owns Pepsi. During the 1960s and 1970s, “Pepsi Generation” advertising and the Pepsi Challenge helped turn competition with Coca-Cola into a durable cultural narrative. Pepsi’s international growth included a landmark Soviet arrangement beginning in the 1970s, as well as expansion through bottlers and distributors across numerous regions. From the 1960s onward, PepsiCo developed a broader brand portfolio. Diet Pepsi launched in 1964, followed by caffeine-free, cherry, lemon and other regional or limited-edition products. Pepsi Max became important in several non-U.S. markets, while Pepsi Zero Sugar became a major contemporary zero-calorie line. Formulations have differed by country, and many markets reduced sugar or introduced sweetener blends during the 2020s in response to health policy, taxation and consumer demand. Pepsi’s later history has been shaped by global entertainment and sports marketing as well as periodic reputational setbacks. Campaigns tied to Madonna, Pepsi Number Fever and Kendall Jenner generated significant controversy, but the brand continued to invest in music, film, celebrity, sporting events and major television moments. Its 2023 identity redesign marked a deliberate attempt to connect heritage assets with digital media and younger consumers. The 2025 Pepsi Prebiotic Cola launch represented another effort to extend the brand beyond conventional full-sugar cola while retaining its established name and flavor category.

2025
Pepsi Prebiotic Cola is announced
[8]PepsiCo launches first-ever prebiotic colapepsico.com
PepsiCo launches a prebiotic-fiber cola proposition in original and Cherry Vanilla variants.
2023
Global visual identity is redesigned
[5]Pepsi unveils a new logo and visual identitypepsico.com
Pepsi unveils a new identity for its 125th anniversary, including a redesigned globe logo and updated typography.
1992
Pepsi Number Fever controversy
[10]Pepsi Number Fever controversyen.wikipedia.org
A Philippines bottle-cap promotion distributes an erroneous large number of winning caps and triggers severe public unrest.
1989
Madonna campaign is withdrawn
[1]Pepsien.wikipedia.org
A campaign connected with Madonna is cancelled after controversy surrounding religious imagery.
1975
The Pepsi Challenge begins
[4]Pepsi historypepsi.co.jp
Blind taste tests compare Pepsi with Coca-Cola and reinforce Pepsi’s challenger positioning.
1965
PepsiCo is formed
[3]Pepsi corporate FAQpepsi.com
Pepsi-Cola Company merges with Frito-Lay, creating PepsiCo.
1964
Diet Pepsi launches
[1]Pepsien.wikipedia.org
Diet Pepsi becomes the first major extension of the Pepsi brand and establishes its reduced-calorie portfolio.
1934
The 12-ounce bottle is introduced
[1]Pepsien.wikipedia.org
Pepsi gains a value advantage during the Great Depression by selling a larger bottle for the prevailing five-cent price.
1923
Pepsi-Cola enters bankruptcy
[1]Pepsien.wikipedia.org
The company fails financially after losses associated with sugar-price volatility during and after the First World War.
1902
Pepsi-Cola Company is incorporated
[1]Pepsien.wikipedia.org
Bradham incorporates the Pepsi-Cola Company as the brand moves beyond its original drugstore setting.
1898
The beverage is renamed Pepsi-Cola
[2]When was Pepsi-Cola invented and how did it get its name?contact.pepsico.com
Bradham changes the beverage’s name from Brad’s Drink to Pepsi-Cola.
1893
Brad’s Drink is created
[1]Pepsien.wikipedia.org
Caleb D. Bradham begins selling a soda-fountain beverage known as Brad’s Drink at his drugstore in New Bern, North Carolina.

Products and positioning

A bold, youthful and culturally active challenger cola brand, combining mass-market refreshment with reduced-sugar, zero-sugar, flavored and functional variants.

Cola · 1898
Pepsi
The original Pepsi cola and the brand’s principal flagship product. It is sold in cans, bottles, fountain formats and market-specific package sizes. Formula, sweetener system and nutrition profile vary by country.
Zero-sugar cola · 1964
Diet Pepsi
A long-running reduced-calorie Pepsi line introduced in 1964. It provides a sugar-free alternative to the original cola and is marketed in multiple package formats and, in some markets, regional flavor variants.
Zero-sugar cola
Pepsi Zero Sugar
A zero-sugar, zero-calorie cola positioned around a fuller Pepsi taste. Naming and formula vary between markets, where related products may be sold as Pepsi Max or under other localized names.
Flavored cola · 1988
Pepsi Wild Cherry
A cherry-flavored extension of Pepsi available in regular and zero-sugar forms in selected markets. It gives the brand a fruit-flavor platform and has been used in youth-oriented and entertainment-led marketing.
Specialty cola · 1982
Caffeine-Free Pepsi
A Pepsi formulation made without caffeine for consumers seeking the brand’s cola flavor without the stimulant. Availability and packaging depend on market demand and local distribution.
Functional cola · 2025
Pepsi Prebiotic Cola
A lower-sugar cola containing prebiotic fiber, announced in 2025 in original and Cherry Vanilla variants. PepsiCo described the product as containing 5 grams of sugar, 30 calories and 3 grams of prebiotic fiber per serving.

Controversies

2026
Cypriot businessmen sue PepsiCo over Famagusta factory use
Greek Cypriot companies CyproFruta and Cyprus Farming Ltd filed a lawsuit seeking compensation from 12 companies and individuals, including PepsiCo, over the alleged use of their factory and land in Famagusta to manufacture Pepsi-branded products. The claim concerns the alleged use of the factory and land for that production. The filing names PepsiCo among the defendants and seeks compensation, according to the report.
Source
2020
Earth Island Institute sues companies over plastic packaging pollution in California
Earth Island Institute filed a lawsuit in a California court against Coca-Cola, Pepsi, Nestle USA, Procter & Gamble and other companies, seeking unspecified damages and an order requiring them to clean up plastic waste. The group alleges that plastic packaging from the companies is fouling California waters and says their products contributed to a global pollution crisis; these are allegations in the lawsuit, not a court determination.
Source
2017
Kendall Jenner protest advertisement
An advertisement depicting Kendall Jenner handing a Pepsi to a police officer during a protest was criticized for trivializing civil-rights demonstrations and social injustice. Pepsi withdrew the advertisement and apologized.
Source
1992
Pepsi Number Fever
A promotional printing error in the Philippines produced a large number of bottle caps carrying the top prize number. The resulting dispute caused public disorder, lawsuits and deaths, making the promotion one of the brand’s most serious historical controversies.
Source
1989
Madonna advertising controversy
Pepsi cancelled a high-profile campaign associated with Madonna after criticism of religious themes in the artist’s “Like a Prayer” video created reputational pressure around the sponsorship.
Source

2024Get Wild
United States
A campaign for Pepsi Wild Cherry encouraged consumers to embrace unconventional, playful aspects of adult life.
Outcome. Supported the cultural positioning of the Wild Cherry flavor platform among younger adults.
Source
2023125th Anniversary Campaign
Global
A multi-month anniversary program connected historic Pepsi advertising and cultural moments with the brand’s new visual identity.
Outcome. Supported the global rollout of the redesigned logo and refreshed heritage narrative.
Source
1996Pepsi Stuff
United States
A promotional program allowed consumers to collect points from Pepsi products and exchange them for branded merchandise and experiences.
Outcome. Became one of Pepsi’s most commercially prominent loyalty and promotional campaigns.
Source
1975Pepsi Challenge
United States · Canada · International markets
Consumers were invited to participate in blind taste comparisons between Pepsi and Coca-Cola without seeing the brand identities.
Outcome. Strengthened Pepsi’s direct challenger narrative and became a signature comparative-marketing platform.
Source
1963Pepsi Generation
United States · International markets
Advertising centered on younger consumers and presented Pepsi as a modern, energetic drink associated with a new generation.
Outcome. Created the foundation for Pepsi’s long-running youth and popular-culture positioning.
Source
1940Nickel, Nickel
United States
A radio campaign used a looping jingle to emphasize that Pepsi offered 12 ounces for the same five-cent price associated with smaller competitor servings.
Outcome. Helped establish Pepsi as a value-oriented choice during the Great Depression.
Source

Brand decisions

2025
Launch Pepsi Prebiotic ColaProduct launch
Background
Interest in lower-sugar products and functional ingredients created an opportunity to extend the traditional cola category.
Action taken
PepsiCo introduced Pepsi Prebiotic Cola in original and Cherry Vanilla variants, with 5 grams of sugar, 30 calories and 3 grams of prebiotic fiber per serving according to its announcement.
Aftermath
The launch broadened Pepsi’s proposition beyond conventional full-sugar and zero-sugar cola formats.
Source
2023
Refresh the global visual identityGeneration change
Background
For its 125th anniversary, Pepsi sought to preserve recognition of its globe symbol while making the identity work more effectively across digital and physical environments.
Action taken
Pepsi introduced a new globe logo, custom typography, electric blue and black color usage, and applications spanning packaging, equipment, retail and digital media.
Aftermath
The redesigned identity began rolling out in North America in 2023 and in additional international markets during 2024.
Source
1975
Deploy the Pepsi ChallengeOther
Background
Pepsi needed a distinctive way to compete with Coca-Cola and challenge the incumbent’s perceived market leadership.
Action taken
The brand used blind taste tests to invite consumers to compare Pepsi and Coca-Cola directly.
Aftermath
The campaign became a durable part of the cola wars and a central expression of Pepsi’s challenger identity.
Source
1965
Merge with Frito-LayM&A
Background
Pepsi-Cola sought a stronger corporate platform and broader distribution capabilities as the beverage business competed with Coca-Cola.
Action taken
Pepsi-Cola Company merged with Frito-Lay to form PepsiCo.
Aftermath
Pepsi became the flagship beverage brand within a diversified food-and-drink group and was no longer operated as an independent listed company.
Source

Recent events

Unconfirmed
Cypriot businessmen sue PepsiCo over Famagusta factory use[11]Cypriot businessmen sue PepsiCo over Famagusta factory usecyprus-mail.com
Reported: 2026-10-23
Greek Cypriot companies CyproFruta and Cyprus Farming Ltd filed a lawsuit seeking compensation from 12 companies and individuals, including PepsiCo, over the alleged use of their factory and land in Famagusta to manufacture Pepsi-branded products.
Unconfirmed
Pepsi launches Vanilla & Cream holiday flavor[13]百事推出香草奶油节日风味kiss983.iheart.com
Pepsi introduced a limited-time seasonal Vanilla & Cream soda, available in regular and Zero Sugar versions in 12-packs and 20-ounce bottles nationwide.
2021-10-04
Pepsi and This Is It! announce an exclusive beverage partnership[14]Pepsi 与 This Is It! 宣布独家饮料合作prnewswire.com
Reported: 2021-10-04
Pepsi announced it would become the exclusive beverage partner of This Is It! Southern Kitchen & Bar-B-Q. The restaurant said it would serve Pepsi across its 11 locations.
2021-07-01
PepsiCo announces European beverage sugar-reduction targets[15]百事宣布欧洲饮料减糖目标econotimes.com
Reported: 2021-07-02
PepsiCo announced that it plans to reduce sugar levels in its leading beverage products in the European Union by 25%, with the planned reduction increasing to 50% by 2030.
2021-03-29
Pepsi and Peeps team up to create limited-edition soda[16]百事与Peeps合作推出限量版汽水yahoo.com
Reported: 2021-03-29
Peeps teamed up with Pepsi to create a limited-edition soda called “Peepsi.”
2021-03-25
Pepsi and Peeps launch limited-edition beverage[17]百事与Peeps推出限量版饮料usatoday.com
Reported: 2021-03-25
Pepsi partnered with marshmallow brand Peeps to launch the limited-edition PEPSI x PEEPS beverage, available only through a sweepstakes.
2021-01-21
Pepsi appoints BLACKPINK as APAC brand ambassadors[18]百事可乐任命 BLACKPINK 为亚太区品牌大使harpersbazaar.com.sg
Reported: 2021-01-21
Pepsi appointed BLACKPINK as its Asia-Pacific brand ambassadors. The partnership includes limited-edition products and a cross-platform campaign titled “Go All in For What You Love.”
Unconfirmed
Pepsi launches Black Restaurants Deliver program[19]百事推出Black Restaurants Deliver计划dayton.binnews.com
Pepsi launched the Black Restaurants Deliver program to help Black-owned businesses build their online ordering and delivery capabilities. The eight-week program is planned to support 400 restaurants in 40 communities over five years.
Unconfirmed
Pepsi launches Dig In platform for Black-owned businesses[19]百事推出Black Restaurants Deliver计划dayton.binnews.com
Pepsi launched the Dig In platform to generate $100 million in sales for Black-owned businesses. It offers businesses resources including business services, training and mentorship.
2020-05-29
Pepsi launches Salaam/Namaste hashtag challenge[20]百事推出 Salaam/Namaste 话题挑战afaqs.com
Pepsi introduced a digital campaign with Salman Khan to encourage contactless greetings and social distancing through a TikTok hashtag challenge.

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