In 1893, a pharmacist named Caleb Bradham was experimenting with carbonated drinks at his drugstore counter in New Bern, North Carolina. He mixed water, sugar, caramel, lemon oil, nutmeg, and various "natural additives" — the exact formula remains contested — and started selling the result to customers as a refreshing digestive aid.
He called it Brad's Drink.
For five years, Brad's Drink was a local hit at Bradham's drugstore. Customers liked it. It was cheaper than Coca-Cola. In 1898, Bradham decided it deserved a better name.
The Digestive Claim
The pepsin connection wasn't just branding — it was a medical claim. Bradham marketed Pepsi-Cola as a drink that aided digestion and boosted energy. This was standard practice for carbonated beverages in the 1890s; many were sold through pharmacies as health tonics, not refreshments.
Coca-Cola, Pepsi's eventual rival, was originally marketed as a headache cure and nerve tonic. Dr Pepper was sold as a "brain tonic." 7Up was originally called "Bib-Label Lithiated Lemon-Lime Soda" — and actually contained lithium citrate until 1950.
The First Bankruptcy
Bradham's story has a painful middle chapter. During World War I, he speculated heavily on sugar — betting that prices would stay high after the war. They collapsed. By 1923, Pepsi-Cola was bankrupt. Bradham sold the trademark and formula to Craven Holding Corporation for a fraction of what they were worth.
The brand changed hands multiple times over the next decade, going bankrupt again in 1931 before being acquired by Charles Guth, a candy magnate who had recently been denied a discount by Coca-Cola and was looking for a rival product to promote through his Loft Inc. candy store chain.
The 12-Ounce Bottle
Pepsi's survival — and eventual rise — came from a depression-era pricing decision that has become one of the most celebrated moves in marketing history. In 1934, Pepsi began selling a 12-ounce bottle for a nickel — the same price as Coca-Cola's 6.5-ounce bottle. The jingle they ran on radio in 1939 made the comparison explicit:
It became the first advertising jingle broadcast nationally in the United States.
The Name Change That Never Happened
In 1961, Pepsi-Cola Company shortened its official name to PepsiCo when it merged with Frito-Lay. But the beverage brand remained "Pepsi" — a four-letter word that had by then been in use for nearly seventy years. The "Cola" suffix, which had distinguished it from Coca-Cola's "Coke" formulation in the early days, was quietly dropped from common usage as the brand grew confident enough to stand on two syllables alone.
What Happened to Brad
Caleb Bradham lost his company, his trademark, and most of his money in the sugar speculation of 1923. He returned to running a pharmacy in New Bern, North Carolina, and died in 1934 — the same year the 12-ounce bottle strategy began rescuing the brand he had invented.
He never owned a share of the company again after the bankruptcy. The name he originally gave his drink — Brad's Drink — appears nowhere in Pepsi's official history. The pharmacist who spent five years building a local following for a carbonated tonic named after himself is a footnote in the story of one of the world's most valuable brands.
The Lesson
Pepsi's history is a reminder that brand names can survive almost everything — bankruptcy, ownership changes, formula disputes, and a century of direct competition from a better-capitalized rival — if the underlying product and positioning are strong enough. "Brad's Drink" wouldn't have survived. "Pepsi" did, through two bankruptcies and four ownership changes, because it was short, distinctive, and increasingly detached from any single person's fortunes.
Caleb Bradham gave the world a drink. Someone else gave it a name that could outlast him.