CELEBRATING A CENTURY IN THE FIZZ BIZ; PEPSI-COLA TURNS 100.

Byline: Randall Chase Associated Press 

From its humble beginning 100 years ago, a fizzy concoction created by a pharmacist as an elixir for aiding digestion has been the choice of generations.

Having been passed from the Pepsi Generation to the New Generation and now to GeneratioNext, Pepsi-Cola is the country's second-most popular soft drink.

The Pepsi story began in the late 1890s at a drugstore fountain in New Bern, N.C., when Caleb Bradham began offering a new beverage touted as a digestive aid and energy booster.

``He made a lot of different remedies for a lot of different ailments,'' said Bob Stoddard of Upland, Calif., who recently finished the book ``Pepsi, 100 Years.''

``Brad's drink,'' as it was known, consisted of 1 ounce of syrup and 5 ounces of soda water mixed with a spoon. It became an immediate hit.

In 1898, Bradham changed the name to Pepsi-Cola. In 1902, he launched the Pepsi-Cola Co. from the back room of his pharmacy, and he was awarded the Pepsi-Cola trademark in 1903.

Bradham had visions of greater things. At first, he mixed, packaged and sold his syrup, then started bottling his drink in 1905. He then began awarding franchises - the first two in Charlotte and Durham - and by 1910 the business had expanded to 24 states and 280 bottlers.

Shortly after World War I, Bradham fell victim to volatile sugar prices. He stockpiled sugar at 22-1/2 cents a pound, then watched it plummet to 3-1/2 cents a pound. The loss, combined with poor marketing, forced him into bankruptcy. He sold the trademark and business in 1923 for $35,000.

The company changed hands four times by 1928 and went bankrupt again in 1931. The trademark was resurrected, however, by Charles Guth, owner of Loft Inc., a chain of candy stores and soda fountains along the East Coast, who tinkered with the soft-drink recipe - its only alteration.

With the nation in the throes of the Depression, Guth in 1934 began selling 12-ounce bottles of Pepsi for a nickel, the same price as the typical 6-ounce bottles of other soft drinks.

``It was kind of belly wash for poor folks; of course there were a lot of poor folks in the '30s and '40s,'' said John Shelton Reed, a sociology professor at the University of North Carolina at Chapel Hill, and an expert on the South.

Consumers responded enthusiastically to an advertising tune touting ``Twice as much for a nickel,'' and Pepsi became so popular that Loft Inc. merged with the subsidiary to become the Pepsi-Cola Co.

In the late 1950s, the company stopped advertising Pepsi as a bargain brand and began focusing its advertising on young people. Over the years it has been touted by such celebrities as Joan Crawford, Michael Jackson, Tina Turner, Michael J. Fox and cosmonauts on the Russian space station Mir.

Pepsi's marketing campaigns were so successful that Coca-Cola, which has 44 percent of the U.S. market to Pepsi's 31 percent, nonetheless decided to offer a sweeter New Coke. Coke drinkers stayed true to the original, first made in 1886 at a pharmacy in Atlanta, and New Coke flopped.

``The sincerest form of flattery was that New Coke tried to taste like Pepsi, but it didn't really work,'' Reed said.

Part of Pepsi's modern success has been selling the image of youth.

``That's always been their bag,'' said Emanuel Goldman, an analyst for PaineWebber in San Francisco. ``They've really been good at that.''

The company is trying to maintain its hip image with a new packaging scheme that features a stylized, 3-D globe logo against a blue ice backdrop.

The company, which in 1965 changed its name to Pepsico, has expanded into other beverages, such as Mountain Dew and Lipton Ice Tea, as well as snack foods like Doritos and Lay's. The company's venture into the restaurant business with Taco Bell, Pizza Hut and KFC ended last year when they were spun off.

Goldman says Pepsico is in good shape. The company's profits for 1997 were $2.14 billion on revenues of $20.92 billion, and Pepsi is now bottled in nearly 150 countries.

Meanwhile, in the town where it all began on the southeastern coast of North Carolina, residents of New Bern plan to honor their famous son with a parade, flotilla and fireworks display April 3-5. An exhibit of Pepsi memorabilia will be on display, and a Pepsi store and museum are being built on the site of Bradham's corner drugstore.

Stoddard, 47, is bringing his entire collection of some 3,000 Pepsi items to add to an exhibit that will go on display March 12.

Stoddard, who gave up his job selling industrial packaging about six years ago, now makes a living selling Pepsi collectibles and serving as a consultant to Pepsi. And, he says, he's always been loyal to the brand.

``I switched over to Diet Pepsi, but I still drink at least a six-pack a day,'' he said. ``I love it.''

PEPSI THROUGH THE YEARS

Late 1890s - Pharmacist Caleb Bradham begins offering a new beverage, soon dubbed ``Brad's drink,'' at his drugstore fountain in New Bern, N.C.

1902 - Bradham launches the Pepsi-Cola Co. from the back of his pharmacy.

1931 - Charles Guth buys Pepsi trademark and other assets at bankruptcy sale for about $10,000. Guth has a chemist change the drink formula to his liking.

1934 - Guth begins selling 12-ounce bottles of Pepsi for a nickel, twice as much beverage as most other soft drinks.

1950 - Alfred Steele, a former Coca-Cola executive, becomes president of Pepsi, named chairman of the board in 1955. In 1954, his wife, actress Joan Crawford, becomes Pepsi spokeswoman.

1984 - Pop singer Michael Jackson is hospitalized filming a Pepsi commercial when a smoke bomb misfires.

1996 - Pepsico is sued for failing to deliver a $33 million military jet featured in television promotion. A group of investors put up about $700,000 to buy the required 7 million purchase points. Lawsuit is still pending.

1997 - Pepsico spins off its fast-food restaurant operations into separate company, Tricon Global Restaurants.

CAPTION(S):

5 Photos

PHOTO (1) (Caleb Bradham)

(2) no caption (Pepsi-Cola builing)

Associated Press

(3) no caption (Joan Crawford)

(4--Color) no caption (Michael Jackson)

(5--Color) no caption (Pepsi cans)