Financial Analysis of Pepsi Co.
Financial Analysis of Pepsi Co.
Pepsi Co. was Created and developed in 1898. It was first introduced as "Brad's Drink" to be later renamed as Pepsi-Cola on June 16, 1903, 60 years later removing the “Cola” and leaving just Pepsi. "Brad's Drink" got its name in New Bern, North Carolina, United States, in 1898, after his creator, Caleb Bradham He made it in his home where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme and kola nuts used in making the beverage. Bradham sought to create a drink that not only was delicious but would also 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. 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. A major part was due to financial losses, brought on by speculating on fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful in making the company profitable. Pepsi's assets sold to Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He wanted to replace “Coca-Cola” at his different store locations. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Pepsi encouraged price-watching consumers to switch. 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, Guth v.
Pepsi Co. was Created and developed in 1898. It was first introduced as "Brad's Drink" to be later renamed as Pepsi-Cola on June 16, 1903, 60 years later removing the “Cola” and leaving just Pepsi. "Brad's Drink" got its name in New Bern, North Carolina, United States, in 1898, after his creator, Caleb Bradham He made it in his home where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme and kola nuts used in making the beverage. Bradham sought to create a drink that not only was delicious but would also 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. 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. A major part was due to financial losses, brought on by speculating on fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful in making the company profitable. Pepsi's assets sold to Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He wanted to replace “Coca-Cola” at his different store locations. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Pepsi encouraged price-watching consumers to switch. 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, Guth v.