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Pepsi-Cola

File:PepsiLogo.jpg
Type	Cola
Manufacturer	PepsiCo.
Country of origin	United States
Introduced	1903
Related products	Coca-Cola RC Cola
Website	www.pepsi.com

Pepsi Cola, is a cola soft drink produced and manufactured by PepsiCo. It is sold worldwide in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years, including Diet Pepsi, Crystal Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi Nex (available in Japan and South Korea), Pepsi Ice Cucumber (available in Japan as of June 12, 2007).

History

Rise in popularity

YOU HAVE GOTTA LOVE COKE IT IS WAY BETTER!!!!!During The Great Depression, Pepsi gained popularity following the introduction in 1934 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to 5 cents, sales went through the roof. With twelve ounces a bottle instead of the six ounces Coca-Cola sold, Pepsi turned the price difference to its advantage with a slick radio advertising campaign, featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you,", encouraging price-watching consumers to switch to Pepsi, while obliquely referring to the Coca-Cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the twelve ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had initially used Loft's finances and facilities to establish the new Pepsi success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi Cola company. A long legal battle then ensued, with Guth losing. Loft now owned Pepsi, and the two companies did a merger, then immediately spun the Loft company off.

Niche marketing

Walter Mack was named the new President of Pepsi-Cola and guided the company through the 1940s. Mack, who supported progressive causes, noticed that the company's strategy of using advertising for a general audience either ignored African Americans or used ethnic stereotypes in portraying blacks. He realized African Americans were an untapped niche market and that Pepsi stood to gain market share by targeting its advertising directly towards them. To this end, he hired Hennan Smith, an advertising executive "from the Negro newspaper field" to lead an all-black sales team, which had to be cut due to the onset of World War II. In 1947, Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man team. They came up with advertising portraying black Americans in a positive light, such as one with a smiling mother holding a six pack of Pepsi while her son (a young Ron Brown, who grew up to be Secretary of Commerce) reaches up for one. Another ad campaign, titled "Leaders in Their Fields", profiled twenty prominent African Americans such as Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.

Boyd also led a sales team composed entirely of African Americans around the country to promote Pepsi. Racial segregation and Jim Crow laws were still in place throughout much of the U.S. and Boyd's team encountered a great deal of discrimination as a result. Not only did they have to ride on segregated trains and stay in black-only hotels, but they faced insults from Pepsi co-workers and even endured threats from the Ku Klux Klan. On the other hand, they were able to use racism as a selling point, attacking Coke's reluctance to hire blacks and the support of segregationist Governor of Georgia Herman Talmadge by the chairman of Coke. As a result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.

Besides racism, the sales team faced obstacles laid down by Coke personnel. Wall Street Journal writer Stephanie Capparell's book The Real Pepsi Challenge details efforts by Coke deliverymen to tear down Pepsi advertising or dirty Pepsi bottles by wiping them with oil rags. They even started a rumor that a black man drowned in one of Pepsi's syrup tanks, leading to a boycott of the cola in North Carolina.

This focus on the African American market caused some consternation within the company and among its affiliates. They did not want to seem focused on black customers for fear that whites would be pushed away. In a meeting at the Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in attendance by pandering to them, saying, "We don't want it to become known as the nigger drink." After Mack left the company in 1950, support for the black sales team faded and it was cut.

New advertising strategy

New President Alfred Steele completely changed direction with the marketing of the product to alter the "econo-brand" image of Pepsi. Postwar inflation put an end to the "Twice as much for a nickel" pricing and marketing strategy anyway, with some bottlers switching to 10 or even 8 ounce bottles at the nickel price, while others kept the 12 ounce bottles but at a higher price, and still others switched to 6 ounce bottles for seven cents. Pepsi's formula was also slightly changed, this time removing some of the sugar content. This was tied into their new image of Pepsi as "The Light Refreshment" and was followed by attempts to market Pepsi as a more affluent beverage. This was the "Be Sociable" campaign and wasn't particularly successful. Pepsi's next strong marketing success didn't occur until they targeted the youth market. First with the "Think Young" campaign in 1961, then more famously with their "Pepsi Generation" advertising two years later.

By the early 1960s, competitor Royal Crown Company was having strong success with their Diet Rite Cola. At that time, The Pepsi-Cola company had branched out into producing other flavors, under their Patio line, and in response to the success of Diet Rite, they added Patio Diet Cola. Success with Patio Diet Cola encouraged them to instead market it as Diet Pepsi in 1964. This was the also the year that Pepsi purchased the Mountain Dew brand from the southeast region Tip Corporation.

In 1965, the Pepsi-Cola Company merged with Frito-Lay, forming PepsiCo.

Marketing

In 1975, PepsiCo introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public..

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing."

In 2007, PepsiCo announced that Pepsi's cans would be redesigned again.

Celebrity endorsers

Unlike Coca-Cola, Pepsi and its associated beverages have had various celebrity endorsers and continue to use them. Joan Crawford married Al Steele who was director of the company, she filled Al's place on the board of directors after he died.

Slogans

• 1939: "Twice as Much for a Nickel"
• 1950: "More Bounce to the Ounce"
• 1958: "Be Sociable, Have a Pepsi"
• 1961: "Now It's Pepsi for Those Who Think Young"
• 1963: "Come Alive, You're in the Pepsi Generation".
• 1967: "(Taste that beats the others cold) Pepsi Pours It On".
• 1969: "You've Got a Lot to Live, Pepsi's Got a Lot to Give".
• 1973: "Join the Pepsi people (feeling free)".
• 1975: "Have a Pepsi day".
• 1979: "Catch that Pepsi spirit". David Lucas composer
• 1981: "Pepsi's got your taste for life".
• 1983: "Pepsi's Now!"
• 1984: "The Choice of a New Generation".
• 1986: "We've Got The Taste" (Commercial with Tina Turner)
• 1991: "Gotta Have It."
• 1995: "Nothing Else is a Pepsi".
• 1997: "GeneratioNext".
• 1999: "Ask for More"/"The Joy of Pepsi-Cola".
• 2003: "It's the Cola"/"Dare for More".
• 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles)
• 2007: "More Happy"/"Taste the one that's forever young".

Types of Pepsi

See also: List of Pepsi types

There are many types of Pepsi-Cola all differing in taste, price and appearance. Diet Pepsi is one of the most popular variations of the drink, containing no sugar and zero calories. Other popular low calorie variations of the drink include Pepsi Max, Pepsi ONE, Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi. In Japan there is Pepsi NEX, which is believed to be the equivalent of Pepsi MAX.

PepsiCo has marketed many different fruit flavors of the drink including: Wild Cherry Pepsi (1988), Diet Wild Cherry Pepsi (2005), Pepsi Lime (2005) and Diet Pepsi Lime (2005) and Pepsi Jazz diet cola with three flavors, Caramel Cream (2007), Strawberries & Cream (2006) and Black Cherry French Vanilla (2006). Pepsi Jazz was invented by Schwab Amin as part of a customer "What's Yo' Flava?" contest in 2006. PepsiCo also rivaled Coca-Cola's lemon-flavored products with Pepsi Twist. Pepsi Twist has been successfully marketed in Brazil (with lime instead of lemon), where a limited-edition version is also sold, the Pepsi Twistão, with an even stronger lime flavor. Pepsi A-ha, with a lemon flavor, was launched in India in 2002 but was not successful. Another type, Pepsi Samba, was released in Australia in the 3rd Quarter of 2005; it is Pepsi with a tropical taste of tamarind and mango.

PepsiCo has introduced many variant versions of Pepsi over the years that differ from the original version in either flavor, appearance or both. Crystal Pepsi, a clear cola free of caffeine, sodium and preservatives, was introduced in 1992 and phased out the following year. Similarly, the blue-colored berry cola Pepsi Blue was introduced in mid-2002 to a mixed response. PepsiCo withdrew it from the market in 2004. In 2006, Pepsi Gold was released.

PepsiCo has introduced coffee-flavored variations of the drink. In 2005, Pepsi Cappuccino was released in Romania and Bulgaria with another coffee-flavored cola called Pepsi Tarik in Malaysia and Pepsi Cafechino in India. In late 2005/early 2006 in the UK PepsiCo released Pepsi Max Cino, a cappuccino variant of its popular Pepsi Max beverage.

Many types of the drink have only been produced or sold for a limited time, such as Pepsi Holiday Spice, a spicy Christmas seasonal finish of ginger and cinnamon. Pepsi X is another variation which contains more caffeine than regular Pepsi-Cola and in addition also contains taurine and guaranine. It is similar to other energy drinks such as Red Bull.

PepsiCo markets Pepsi ONE in the US in place of Pepsi X (sold only outside the US and not currently available for import), as both are sweetened with SPLENDA® No Calorie Sweetener, and Pepsi ONE contains 4.6mg of caffeine per ounce without the added taurine and guaranine (Pepsi X has 2.5mg of caffeine and regular Pepsi has 3.13mg per ounce).

Criticisms

See also: PepsiCo#Criticisms Pepsi was banned from import in India in 1970 for having refused to release the list of its ingredients. In 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. One study led by the Center for Science and the Environment (CSE), an independent laboratory in New Delhi, found that the soft drinks contained residues of dangerous pesticides, with one dose 36 times greater than the European standard for Pepsi and 30 times greater for Coca-Cola . However, this was the European standard for water, not for other drinks. The presence of these products could provoke cancers, negatively affect the nervous and immune systems, and cause birth defects. No law bans the presence of pesticides in drinks in India. In 2003 and again in 2006, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, found that soda drinks produced by manufacturers in India, including both Pepsi and Coca-Cola, had dangerously high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, has been banned. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals. On September 22, 2006, the High Court in Kerala overturned the Kerala ban ruling that only the federal government can ban food products.

Iran state television broadcasted anti-Pepsi propaganda, saying that the PEPSI letters stood for Pay Each Penny Save Israel. PepsiCo has a bottling plant in Iran.

In a related controversy involving Pepsi's parent company, PepsiCo, the website Wikiscanner.virgil.gr revealed that in 2006 someone at PepsiCo modified the Misplaced Pages entry for Pepsi by deleting paragraphs that discussed its detrimental health effects. This incident was one among other self-promoting edits to Misplaced Pages by U.S. corporations.

Rivalry with Coca-Cola

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge". These tests suggested that more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation.

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. Some authorities believe that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly reintroducing the original formula as Coke "Classic".

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. Saudi Arabia, Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s), the Canadian provinces of Quebec and Prince Edward Island and the U.S. state of Michigan are the exceptions.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 60.8%.

Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by relying on local Québécois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. "Pepsi" eventually became an offensive nickname for Francophones viewed as a lower class by Anglophones in the middle of the 20th century. The term is now used as an historical reference to French-English linguistic animosity (During the partitionist debate surrounding the 1995 referendum, a pundit wrote, "And a wall will be erected along St-Laurent street because some people were throwing Coke bottles one way and Pepsi bottles the other way").

In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was about 43.1 percent.

In Russia, Pepsi once had a larger market share than Coca-Cola. However, Pepsi's dominance in Russia was undercut as the Cold War ended. PepsiCo had made a deal with the Soviet Union for scale production of Pepsi in 1972. When the Soviet Union fell apart, Pepsi, was associated with the old Soviet system, and Coca Cola, just newly introduced to the Russian market in 1992, was associated with the new system. Thus, Coca-Cola rapidly captured a significant market share away from Pepsi that might otherwise have needed years to build up. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.

In the same way that Coca Cola has become a cultural icon and its global spread has spawned words like "coca colonization", Pepsi Cola and its relation to Russia has also turned it into an icon. In the early 1990s, the term, "Pepsi-stroika", began appearing as a pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as a lot of fizz without substance and as an attempt to usher in Western products in deals there with the old elites. Pepsi, as one of the first American products in the Soviet Union, became a symbol of the relationship and the Soviet policy.

Ingredients

The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients minus the caffeine.

The original Pepsi-Cola recipe (which is pretty close to the original Coca-Cola recipe) was actually available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. Note that the original formulation contained neither cola nor caffiene.

The Original Pepsi-Cola Recipe

Competitors

• Coca-Cola
• R.C. Cola

See also

• Pepsico
• Pepsi Stuff
• Soft drink
• Cola wars
• Coca-Cola (drink)
• The Coca-Cola Company (Competitor)
• Pepsiman (Mascot for the Japanese division of Pepsi)
• List of Pepsi types

Listen

• 1939 Radio Commercial (Twice as Much for a Nickel)

Notes

1. Jones, Eleanor & Ritzmann, Florian. "Coca-Cola at Home". Retrieved June 17, 2006.
2. ^ Martin, Douglas (May 6 2007). "Edward F. Boyd Dies at 92; Marketed Pepsi to Blacks". The New York Times. Retrieved 2007-05-05. {{cite news}}: Check date values in: |date= (help)
3. ^ Archer, Michelle (January 22 2007). "Pepsi's challenge in 1940s: Color barrier". USA Today. Retrieved 2007-05-07. {{cite news}}: Check date values in: |date= (help)
4. ^ Stewart, Jocelyn Y (May 5 2007). "Edward Boyd, 92; Pepsi ad man broke color barriers". Los Angeles Times. Retrieved 2007-05-05. {{cite news}}: Check date values in: |date= (help)
5. Tavis, Smiley (February 27 2007). "Edward Boyd" (interview). PBS. Retrieved 2007-05-04. {{cite web}}: Check date values in: |date= (help)
6. SODAmuseum.com "The History of Pepsi-Cola", sodamuseum.bigstep.com, paragraph 31
7. PepsiCo - Company - Honors (2002), Promo Magazine, 2002.
8. Pepsi Can Gallery
9. Pepsi, Coke contain pesticides: CSE
10. Cola sales down 10% on state bans
11. Kerala bans Coke and Pepsi
12. Indian state bans Pepsi and Coke
13. Thomas, V.M. Indian Court Overturns Coke, Pepsi Ban
16. "Seeing Corporate Fingerprints in Misplaced Pages Edits", New York Times, August 19 2007
17. [http://www.strategymag.com/articles/magazine/20041015/vive.html?page=1 "Vive la difference 'Does that mean I have to have a separate campaign?"], Strategy Magazine, October 2004
18. "India: Soft Drinks, Hard Cases", The Water Dossier, 14 March 2005
19. "Fizzical Facts: Coke claims 60% mkt share in India", Times News Network, August 5 2005
20. "The Pepsi 'Meunier' Campaign" (PDF). Canadian Advertising Success Stories (Cassies) Case Library. Retrieved 2007-08-21.
21. "Beverage Digest Press Release", Beverage Digest, March 4 2005 (PDF)
22. "Coke Versus Pepsi, Santa Versus Moroz", The Moscow Times, December 30 2005
23. The word first appeared in an exhibit in the Harvard University Law School Library in December 1990 to February 1991, then in several articles and books by anthropologist David Lempert, who coined the phrase. Most notable is the third book inside the two volume set, "Pepsi-stroika" in Daily Life in a Crumbling Empire: The Absorption of Russia into the World Economy, Columbia University Press/ Eastern European Monographs, 1996.

References

• Beverage World Magazine, January 1998, "Celebrating a Century of Refreshment: Pepsi - The First 100 Years"
• Stoddard, Bob. Pepsi Cola - 100 Years (1997), General Publishing Group, Los Angeles, CA, USA
• "History & Milestones" (1996), Pepsi packet
• Louis, J.C. & Yazijian, Harvey Z. "The Cola Wars" (1980), Everest House, Publishers, New York, NY, USA

External links

• The origin of Company Pepsi
• Pepsi FAQ
• Pepsi World
• Pepsi Gallery - Pepsi Promotional site
• Pepsi Americas
• 'Coke, Pepsi losing the fizz'
• 1987 Audio Interview with John Sculley by Don Swaim of CBS Radio - RealAudio
• The Annual Pepsi Independence Day Celebration (Tri-Cities, TN.)
• The Pepsi Max Cappuccino Wire, a fan site to Pepsi Max Cappuccino.
• Nutrition facts
• http://www.springbokradio.com/ADSPEPSI.html (South African 1977 Radio Commercial)

v t e Cola brands
Australia	Count Cola, Export Cola, LA Ice Cola, Schweppes Cola
Austria	Red Bull Simply Cola, Keli Cola
Bangladesh	Pran Cola
Canada	Bec Cola, Big 8, Compliments, No Name, President's Choice, Selection
Czech Republic	Kofola
China	China Cola, Future Cola, Laoshan Cola
Colombia	Kola Román
Cuba	tuKola
Denmark	Jolly Cola, OpenCola
France	Auvergnat Cola, Breizh Cola, Corsica Cola, El Ché-Cola, Fada cola, Mecca-Cola
Finland	Olvi Cola
Germany	Afri-Cola, Club Cola, Fritz-kola, Premium-Cola, Sinalco, Vita Cola
Greece	Green Cola
India	Double Seven, Thums Up, Campa Cola
Hong Kong	Meadows Classic Cola, Sparkling Super Cola, Vita Cola
Iran	Parsi Cola, Topsia Cola, Zamzam
Ireland	Cavan Cola
Myanmar	Star Cola
New Zealand	Foxton Fizz
Pakistan	Amrat Cola, Pakola
Peru	Beed Cola, Kola Real, Cassinelli, Fruti Kola, Fuji-Cola, Isaac Kola, Inca Kola, Kola Real, Perú Cola, Triple Kola
Poland	Polo Cockta
Sweden	Apotekarnes Cola, Cuba Cola, XL Cola
Saudi Arabia	Milaf Cola
Slovenia	Cockta
Thailand	Est Cola
Turkey	Cola Turka, Kristal Kola
Trinidad and Tobago	Cole Cold
United Kingdom	Barr Cola, Classic Cola, Evoca Cola, Fentimans Curiosity Cola, Fever-Tree Distillers Cola, Maxi-Cola, Qibla Cola, Red Kola, Rola Cola, Ubuntu Cola, Virgin Cola
United States	365, Big K, Blue Sky, Boost!, Boylan, Bubba, Caleb's Kola Coca-Cola (Diet Coke, Zero Sugar), Tab, Cott, Cricket Cola, Diet Rite, Double Cola, Dublin Faygo, Filbert's, Fitz's, Grandpa Graf's, Grapette, Jolt Cola, Jones Soda, Like Cola, Maraschino Cola, Mr. Cola, Nuka Cola, Olipop, Pepsi, RC Cola, Reed's, King Kong Cola, Sam's Choice, Shasta, Signature, Stars & Stripes, Vess, Virgil's, Zevia
Vanuatu	Lava Cola
Venezuela	Frescolita

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