The demand for Pepsi-Cola skyrocketed, leading Bradham to establish the Pepsi-Cola Company in late 1902. By June 16, 1903, “Pepsi-Cola” had become an official trademark, and the syrup’s sales reached nearly 20,000 gallons by 1904. To cater to the expanding market, Bradham began bottling Pepsi-Cola, and by 1910, there were 250 franchises across 24 states, and that same year, New Bern hosted the first-ever Pepsi-Cola Bottler Convention.

But then, tough times hit during World War I. Sugar prices soared, and strict rationing made it nearly impossible to produce enough Pepsi to keep up with demand. Bradham tried different sugar substitutes like molasses, but nothing matched the original flavor. When the war ended, sugar prices went from 3 cents to 28 cents per pound. Betting on the market, Bradham bought a huge supply at the inflated price—a decision that contributed to Pepsi-Cola’s downfall. By May 31, 1923, the company was bankrupt, and its assets were sold to Craven Holding Corporation for just $30,000, which again went bankrupt in the crash of 1929.

In 1931, after passing through the hands of several investors, Pepsi Cola was bought by the Loft Candy Co. Charles G. Guth, Loft’s president, struggled to make a success of Pepsi during the depths of the Great Depression. At one point, Loft even offered to sell Pepsi to executives at Coke, who refused to offer a bid.

Guth reformulated Pepsi and began selling the soda in 12-ounce bottles for just 5 cents, which was twice as much as what Coke offered in its 6-ounce bottles. Touting Pepsi as “twice as much for a nickel,” Pepsi scored an unexpected hit as its “Nickel Nickel” radio jingle became the first to be broadcast coast to coast. Eventually, it would be recorded in 55 languages and named one of the most effective ads of the 20th century by Advertising Age.