Cola Wars (band)
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The cola wars are the long-time rivalry between cola producers The Coca-Cola Company and
PepsiCo PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
, who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flagship products: Coca-Cola and Pepsi. Beginning in the late 1970s and into the 1980s, the competition escalated until it became known as the cola wars.


History

In 1886, John Stith Pemberton, a pharmacist from Atlanta, Georgia, developed the original recipe for Coca-Cola. By 1888, control of the recipe was acquired by Asa Griggs Candler, who in 1896, founded The Coca-Cola Company. Two years later, in 1898, Caleb Bradham renamed his "Brad’s Drink" to "Pepsi-Cola," and formed the Pepsi-Cola Company in 1902, prompting the beginning of the cola wars. The two companies continued to introduce new and contemporary advertising techniques, such as Coke's first celebrity endorsement and 1915 contour bottle, until 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 an affordable 5 cents per bottle, reigniting the cola wars through to today. Pepsi offered to sell out to Coca-Cola following both of its bankruptcies during this time, but Coca-Cola declined each time.


Advertising strategies


Coca-Cola

Coca-Cola advertising has historically focused on wholesomeness and nostalgia. Coca-Cola advertising is often characterized as "family-friendly" and often relies on "cute" characters (e.g., the
Coca-Cola polar bears The Coca-Cola polar bears are fictional polar bears used as mascots by the Coca-Cola Company. The animated characters have been a popular element in Coca-Cola advertising since 1993, and the company sells merchandise such as tumblers and plush bear ...
mascot and
Santa Claus Santa Claus, also known as Father Christmas, Saint Nicholas, Saint Nick, Kris Kringle, or simply Santa, is a Legend, legendary figure originating in Western Christianity, Western Christian culture who is said to Christmas gift-bringer, bring ...
around Christmas).


"New Coke"

During the peak of 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 popularly known as "
New Coke New Coke was the unofficial name of a reformulation of the soft drink Coca-Cola, introduced by The Coca-Cola Company in April 1985. It was renamed Coke II in 1990 and discontinued in July 2002. By 1985, Coca-Cola had been losing market share to ...
". Consumer backlash to the change led to the company making a strategic retreat on July 11, 1985, announcing its plans to bring back the previous formula under the name "Coca-Cola Classic". Some think the decision to replace the original flavor was actually a strategic masterstroke to bolster Coke sales once it came back on the market, which it did; however, the Coca-Cola Company vehemently denies the claim.


Pepsi

Pepsi advertising Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi was ...
is heavily supported by strategic sponsorships and online marketing. Pepsi's logo utilizes the red, white and blue colors of the
Flag of the United States The national flag of the United States, United States of America, often referred to as the ''American flag'' or the ''U.S. flag'', consists of thirteen equal horizontal stripes of red (top and bottom) alternating with white, with a blue rect ...
, drawing on a strong sense of patriotism throughout its branding.


Pepsi Challenge

In 1975, Pepsi began showing advertisements based on the Pepsi Challenge, in which ordinary people were asked which product they preferred in blind taste tests. The campaign suggested that, when it came down to taste alone, consumers preferred Pepsi over Coca-Cola. This prompted Coca-Cola's creation of "Diet Coke," and later on, "New Coke," both of which led to a major shifting point in the cola wars. However, the Pepsi Challenge was a marketing campaign and not scientific study. Subsequent studies with scientific controls found only modest differences between Pepsi and Coke.


"Pepsi Stuff"

In the mid-1990s, Pepsi launched its most successful long-term strategy of the cola wars, Pepsi Stuff. Using the slogan "Drink Pepsi, Get Stuff", consumers could collect Pepsi Points on packages and cups which could be redeemed for free Pepsi merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Due to its success, the program was expanded to include
Mountain Dew Mountain Dew, stylized as Mtn Dew, is a carbonated soft drink brand produced and owned by PepsiCo. The original formula was invented in 1940 by Tennessee beverage bottlers Barney and Ally Hartman. A revised formula was created by Bill Brid ...
and Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year. This line of commercials led to the court case
Leonard v. Pepsico, Inc. ''Leonard v. Pepsico, Inc.'', 88 F. Supp. 2d 116, ( S.D.N.Y. 1999), aff'd 210 F.3d 88 (2d Cir. 2000), more widely known as the Pepsi Points case, is an American contract law case regarding offer and acceptance. The case was tried in the United ...
, which was chronicled in the 2022 Netflix show Pepsi, Where's My Jet?


Super Bowl LIII

Super Bowl LIII Super Bowl LIII was an American football game played to determine the champion of the National Football League (NFL) for the 2018 season. The American Football Conference (AFC) champion New England Patriots defeated the National Football Confe ...
was played in Atlanta, which is where Coca-Cola has its head office, in 2019. Pepsi had been a major sponsor of the NFL for years, most recently renewing its sponsorship deal in 2011. Pepsi advertising tied to the game poked fun at the situation 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?".


Comparison of products

Many of the brands available from the three largest soda producers, The Coca-Cola Company, PepsiCo and Keurig Dr Pepper, are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavor of drink.


See also

*
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* Coffee wars *
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*
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* Smartphone wars * Browser wars * Max Headroom *
Tar derby The tar derby is the period in the 1950s marked by a rapid influx in both Tobacco advertising, cigarette advertising focused on Tar (tobacco residue), tar content measurements to differentiate cigarettes and brand introduction or repositioning focu ...


References

{{Soft drink Cola Advertising Business rivalries Coca-Cola PepsiCo Mass media rivalries