Pepsi was created in 1893 by Caleb Bradham in his Drug Store in New Bern, North Carolina. The original name of this new drink was called “Brad’s Drink” after Caleb Bradham himself. It was made with a mix of sugar, water, caramel, lemon oil, nutmeg, and cola nuts. On August 28th, 1898, Brad’s Drink was renamed to Pepsi after the pepsin enzyme. Bradham believed that his drink was a “healthy” cola that helped with digestion.

Pepsi sales began to rise as word spread of a new drink in North Carolina. The first two franchised bottling plants were established in Charlotte and Durham, North Carolina, in 1905. Demands continued to rise as 300 more plants were opened across 24 states. Pepsi was an innovator of its time, being one of the first products to be shipped via motor transport. After the United States passed the Food and Drug Act of 1906 that banned dangerous chemicals from the public’s food and drugs, Pepsi stood strong as it was only made with natural ingredients. This converted many Americans to try Pepsi Cola, since it was a much safer alternative. Following the increase of sugar costs in World War I (from 3 cents/pound to 28 cents/pound), Bradham was forced into bankruptcy—which would only be the first of many in Pepsi’s history.