PEPSI COLA - FINANCIAL ANALYSIS

Pepsi Cola - Financial Analysis



Pepsi Cola - Financial Analysis

Introduction

Pepsi is a carbonated supple drink that is made and constructed by PepsiCo. Invented in 1883 and introduced as "Brad's Drink", it was subsequent renamed as Pepsi-Cola on June 16, 1903.

Pepsi was first presented as "Brad's Drink" in New Bern, North Carolina, in 1883 by Caleb Bradham, who made it at his chemist where the drink was sold. It was subsequent entitled Pepsi Cola, probably due to the digestive enzyme pepsin and kola nuts utilised in the recipe. Bradham searched to conceive a fountain drink that was delicious and would help in digestion and increase energy.

In 1903, Bradham shifted the preserving of Pepsi-Cola from his chemist to a leased warehouse. That year, Bradham traded 7,968 gallons of syrup. The next year, Pepsi was traded in six-ounce containers, and sales expanded to 19,848 gallons. In 1909, automobile rush pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, recounting it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advocating topic "Delicious and Healthful" was then utilised over the next two decades. In 1926, Pepsi obtained its first logo redesign since the original design of 1905. In 1929, the logo was altered again. (Michelle, 2007, pp. 131)

In 1931, at the deepness of the Great Depression, the Pepsi-Cola Company went into bankruptcy - in large part due to economic deficiency acquired by speculating on madly fluctuating sugar charges as a result of World War I. Assets were traded and Roy C. Megargel acquired the Pepsi trademark. Eight years subsequent, the business went bankrupt again. Pepsi's assets were then bought by Charles Guth, the President of Loft Inc. Loft was a confectionary constructor with retail shops that comprised soda fountains. He searched to restore Coca-Cola at his stores' fountains after Coke denied to give him a discount on syrup. Guth then had Loft's pharmacists reformulate the Pepsi-Cola syrup formula.

On three distinct events between 1922 and 1933, the Coca-Cola Company was suggested the opening to buy the Pepsi-Cola company and it turned down on each occasion. (Michelle, 2007, pp. 131)

Pepsi Cola TradeMark

The original trademark submission for Pepsi-Cola was filed on September 23, 1902 with registration accepted on June 16, 1903. In the application's declaration, Caleb Bradham describes the trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and demonstrated that the mark was in relentless use for his enterprise since August 1, 1901. The Pepsi-Cola's description is a flavouring-syrup for soda water. The trademark expired on April 15, 1994.

Asecond Pepsi-Cola trademark is on record with the USPTO. The submission date submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with the thriving registration date of April 15, 1906, over three years after the initial date. Curiously, in this application, Caleb Bradham states that the trademark had been relentlessly utilised in his business "and those from who title is drawn from since in the 1905 submission the recount submitted to the USPTO was for a tonic ...