Pepsi History thread:

Between 1922 and 1934, Pepsi-Cola’s financial situation was so bad that three times Pepsi-Cola approached Coca-Cola and offered to sell out to their competitor. All three times Coca-Cola rejected their offer.

Pepsi was first introduced as “Brad’s Drink” in 1893 by Caleb Bradham. It was renamed in 1898 to reflect its secret ingredients: Digestive enzymes named pepsin and kola nuts. Bradham unsuccessfully speculated on wildly fluctuating sugar (below) prices and Pepsi faced bankruptcy.

A series of buyouts between 1922-1934 resulted in Pepsi being acquired by Charles Guth, president of candy manufacturer Loft, Inc. Guth wanted to cut costs at his soda fountains and tried to get Coke to lower the cost of their syrup. Coke refused.

Guth bought an 80% stake in Pepsi and had Loft’s chemists reformulate the Pepsi syrup. Guth then quit Loft, Inc. to run Pepsi and sold the syrup to Loft, Inc., his former employer, at a profit.

In a stroke of marketing genius, Guff began packaging Pepsi in 12oz bottles rather than 6.5oz bottles (like Coke) while keeping the price the same at 5 cents. Guth introduced the jingle “Pepsi-drink for you.” Pepsi stock soared, rising one-hundred-fold within two years (below).

Loft, Inc was bleeding money, so the shareholders sued Loft, Inc, and Loft, Inc sued Pepsi.

Loft won the suit, and in a reverse acquisition, Loft became Pepsi in 1941.

$1 invested in Pepsi in 1941 would be worth $10,000 today.