Corporate War - Pepsi and Coca Cola

Topics: Coca-Cola, Pepsi, PepsiCo Pages: 14 (4704 words) Published: January 12, 2013
Wars Pepsi VS Coca Cola

History of Pepsi:
Pepsi was first introduced as "Brad's Drink" in United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy – in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. On three separate occasions between 1922 and 1933, The Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.

History of Coca Cola:
Coca-Cola was invented in 1886 by John Pemberton, an Atlanta, Georgia, pharmacist. Pemberton was actually trying to concoct a headache remedy, but once he mixed his special syrup with carbonated water, and a few customers tasted the result, he realized that he had the makings of a popular soda fountain beverage. The name Coca-Cola was coined by Pemberton's bookkeeper, Frank Robinson, who also wrote out the new name in the expressive script that has become Coca Cola's signature logo.

Though the Coca-Cola Company apparently would rather not talk about the origin of its name in detail, it's clear that Robinson derived "Coca-Cola" from two of the drink's ingredients: cola from the cola nut, and extract of coca leaf, also the source of cocaine. Cocaine was a common ingredient of nineteenth-century patent medicines, and by the standards of the day it contained a minuscule amount that probably had no effect on its consumers.

Still, by the early 1890s there was a rising tide of anti-cocaine sentiment, and Atlanta businessman Asa Candler, who acquired the Coca Cola Company in 1891, steadily decreased even the tiny amount of the drug in the recipe. The only reason Candler kept putting even minute amounts of coca extract in the drink was the belief that to omit it entirely might cause Coca Cola to lose its trademark. But Coca-Cola was completely cocaine free by 1929.

In 1940, the U.S. Supreme Court ruled that the name Coke rightfully belongs to the Coca-Cola Company.

In financial circles, Coca-Cola has been one of the strongest and most reliable trading stocks, showing a steady return in all of its years of existence but one. Warren Buffet, one of the world's richest men, has always touted Coca Cola as an essential in one's stock portfolio. Comparision between their Advertisements:

Additionally while Pepsi with its younger audience tends to focus soley on pop stars, it was Coca-Cola who is regarded as having one of the greatest TV advertisiments of all time, featuring a far more mature pop band Blondie and the enormous hit "Atomic", the video played the...
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