Cola wars

History

In 1886, John Stith Pemberton, a pharmacist from Columbus, Georgia, developed the original recipe for Coca-Cola. By 1888, control of the recipe was acquired by Asa Griggs Candler, who founded the Coca-Cola Company in 1896. Two years later in 1898 in New Bern, North Carolina, Caleb Bradham renamed his "Brad's Drink" to "Pepsi-Cola," and founded the Pepsi-Cola Company in 1902.

The two companies introduced advertising techniques, such as Coke's first celebrity endorsement and its 1915 contour bottle. However, market instability following World War I forced Pepsi to declare bankruptcy in 1923. In 1931, Pepsi went bankrupt once more, but recovered and began selling its products at 5 cents per bottle, helping them remain competitive in the market. Pepsi approached Coca-Cola with an offer to sell following both bankruptcies, but Coca-Cola declined.

Joya Williams, a secretary to Coca-Cola's global brand director, conspired to sell the Coca-Cola formula in 2006. Williams, along with her accomplices Ibrahim Dimson and Edmund Duhaney, conspired to sell the confidential trade secret to Pepsi for $1.5 million USD. However, Pepsi did not buy and instead reported the illegal offer to Coca-Cola and the FBI. The FBI conducted a sting operation posing as Pepsi executives, leading to the arrest of Williams and her accomplices. U.S. attorney David Nahmias praised Pepsi for reporting Williams' actions, saying, "if their trade secrets are violated, they all suffer, the market suffers and the community suffers."

Advertising strategies

Coca-Cola

Coca-Cola advertising has often incorporated themes of wholesomeness and nostalgia, such as the Coca-Cola polar bears mascot and Santa Claus campaigns during Christmas.

Pepsi

Pepsi advertising strategy has prominently featured sponsorships and online marketing.

Pepsi Challenge

In 1975, Pepsi launched the Pepsi Challenge, in which people were asked which cola they preferred in blind taste tests. The campaign suggested that consumers favored Pepsi over Coca-Cola based solely on taste. This contributed to the competitive campaigns, and around this time, Coca-Cola introduced Diet Coke in 1982, and New Coke three years later. However, the Pepsi Challenge was a marketing campaign and not a scientific study. Subsequent studies with scientific controls found only modest differences between Pepsi and Coke. The campaign suggested that, when it came down to taste alone, consumers preferred Pepsi over Coca-Cola. Some researchers have suggested that the taste of the Coca-Cola and Pepsi Cola products were influenced by external factors, such as the temperature at which they were served.

"New Coke"

During the cola wars, as Coca-Cola saw its flagship product losing market share to Pepsi as well as to Diet Coke and competitors' products, the company considered a change to the beverage's formula and flavor. In April 1985, The Coca-Cola Company introduced its new formula for Coca-Cola, which became known as "New Coke". However, consumer backlash led to the company reintroducing the original formula as "Coca-Cola Classic" on July 11, 1985. Some analysts have speculated that the decision to replace the original flavor was actually a strategy to boost Coke sales once it came back on the market, which it did; however, the Coca-Cola Company denies the claim.

"Pepsi Stuff"

In the mid-1990s, Pepsi launched its Pepsi Stuff campaign. Using the slogan "Drink Pepsi, Get Stuff", consumers could collect Pepsi Points on packages and cups which could be redeemed for free Pepsi merchandise. The program was later expanded to include Mountain Dew and Pepsi's international markets worldwide. The company continued to run the program for many years, with periodic updates with new features. This line of commercials led to the court case Leonard v. Pepsico, Inc., which was chronicled in the 2022 Netflix show Pepsi, Where's My Jet?

Super Bowl LIII

Super Bowl LIII in 2019 was played in Atlanta, Georgia, which is where Coca-Cola's head office is located. Pepsi had been a sponsor of the NFL for years, sponsoring the half time shows from 2013 to 2022. Pepsi advertising tied to the game referenced the game’s location with slogans such as "Pepsi in Atlanta. How Refreshing", "Hey Atlanta, Thanks For Hosting. We'll Bring The Drinks", and "Look Who's in Town for Super Bowl LIII". Both companies ran television ads during the Super Bowl, as Coca-Cola aired the commercial "A Coke is a Coke" just before the Super Bowl's National Anthem, while Pepsi ran a series of ads with the tagline "Is Pepsi OK?".

Celebrity branding

Both Coca-Cola and Pepsi engaged celebrity branding in the Cola wars, enlisting musicians as spokespeople. Coca-Cola hired Paula Abdul to represent them, while Pepsi hired Michael Jackson. Jackson contributed to Pepsi's public relations and advertising, suggesting that the company use his song "Billie Jean" as their jingle.

On January 27, 1984, Michael and other members of the Jacksons filmed a Pepsi commercial overseen by Phil Dusenberry, a BBDO ad agency executive, and Alan Pottasch, Pepsi's Worldwide Creative Director, at the Shrine Auditorium in Los Angeles. During a simulated concert, pyrotechnics accidentally set Jackson's hair on fire, causing second-degree burns to his scalp. Jackson underwent treatment to hide the scars and had his third rhinoplasty shortly thereafter. Pepsi settled out of court, and Jackson donated the $1.5million (equivalent to $ in ) settlement to the Brotman Medical Center in Culver City, California; its now-closed Michael Jackson Burn Center was named in his honor.

Comparison of products

Many of the brands available from the three largest soda producers, The Coca-Cola Company, PepsiCo and Keurig Dr Pepper, compete directly within similar categories of soft drinks. The following chart lists these competitors by type or flavor of drink.

In popular culture

It was announced in September 2024 that Judd Apatow would be directing a film based on the cola wars for Sony Pictures Motion Picture Group, with Steven Spielberg as producer.

References

References

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16. Delaney Strunk. (29 January 2019). "The biggest rivalry in Atlanta on Super Bowl weekend has nothing to do with football".
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20. Shivaprasad, Sindhu. (August 30, 2016). "Reliving the icon who defined music history: The eternal moonwalker, King of Pop – Michael Jackson". Big News Network.
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26. Franklin, Garth. (2024-09-11). "Judd Apatow To Direct "Cola Wars" Film".
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29. Fleming, Mike Jr.. (2024-02-23). "Sony Uncaps $1M+ Deal For 'Cola Wars' In Heated Auction For Coke Vs. Pepsi Saga".