PepsiCo, Inc.
Company History
PepsiCo History: Founding, Growth & Key Milestones
Founded 1965 in New Bern, North Carolina, United States
When was PepsiCo founded?
PepsiCo was founded in 1965 in New Bern, North Carolina, United States by Caleb Bradham, Donald M. Kendall and Herman W. Lay, making it 61 years old.
- Founded
- 1965
- Founding place
- New Bern, North Carolina, United States
- Founders
- Caleb Bradham, Donald M. Kendall and Herman W. Lay
- Headquarters today
- Purchase, New York, United States
- Milestones documented
- 12 (1898–2026)
- Current CEO
- Ramon Laguarta
- Acquisitions
- 5
| Year | Event |
|---|---|
| 1898 | Pepsi-Cola Invented in North Carolina |
| 1965 | Historic Merger of Pepsi-Cola & Frito-Lay |
| 1975 | Launch of the Pepsi Challenge |
| 1997 | Restaurant Business Spun Off |
| 1998 | Acquisition of Tropicana ($3.3B) |
| 2001 | Acquisition of Quaker Oats & Gatorade ($13.4B) |
| 2006 | Indra Nooyi becomes CEO |
| 2011 | Wimm-Bill-Dann Acquired |
| 2018 | Acquisition of SodaStream ($3.2B) & Ramon Laguarta Appointed CEO |
| 2022 | Strategic Distribution Alliance with Celsius ($550M) |
| 2025 | poppi Acquisition and Elliott-Backed Plan |
| 2026 | Price Cuts on Core Snacks |
- Where was PepsiCo founded?
- PepsiCo was founded in New Bern, North Carolina, United States in 1965.
- Where does the name PepsiCo come from?
- The Pepsi drink was first made in 1893 as "Brad's Drink" by Caleb Bradham at his drugstore in New Bern, North Carolina, and was renamed Pepsi-Cola in 1898. en.wikipedia.org
- Who made PepsiCo?
- PepsiCo was founded by Caleb Bradham, Donald M. Kendall and Herman W. Lay.
- When did PepsiCo start?
- PepsiCo was founded in 1965.
- How old is PepsiCo?
- PepsiCo is 61 years old as of 2026.
Founding Story
Pepsi-Cola began in 1898 as "Brad's Drink," created by pharmacist Caleb Bradham in New Bern, North Carolina. Frito-Lay was formed in 1961 when Herman Lay's potato chip company merged with C.E. Doolin's Frito Company. In 1965 Pepsi-Cola CEO Donald Kendall and Herman Lay merged the two companies to form PepsiCo, betting that salty snacks and soft drinks would sell well together through the same stores and delivery routes.
Founders
Caleb Bradham
Caleb Bradham created "Brad's Drink" at his New Bern pharmacy in 1898, renamed it Pepsi-Cola and incorporated the Pepsi-Cola Company in 1902. He built a regional bottler franchise network, but sugar price swings after World War I bankrupted the company in 1923. Caleb Bradham was born in 1867. Education: University of North Carolina at Chapel Hill; University of Maryland School of Medicine. Caleb Davis Bradham was born on May 27, 1867 and died on February 19, 1934. He is remembered as the pharmacist who invented Pepsi.
Donald M. Kendall
Donald M. Kendall led Pepsi-Cola and engineered its 1965 merger with Frito-Lay to form PepsiCo, which he ran as CEO until 1986. He famously handed Nikita Khrushchev a Pepsi at the 1959 Moscow exhibition and in 1972 negotiated Pepsi's entry into the Soviet Union. Donald M. Kendall was born in 1921 in Sequim. Education: Mercy University. Donald McIntosh Kendall was born on March 16, 1921 and died on September 19, 2020, aged 99. Besides his business career he was a political adviser. He was chief executive of PepsiCo from 1971 to 1986.
Herman W. Lay
Herman W. Lay (1909-1982) started his career as a snack food salesman. In 1932, he opened a snack food operation in Nashville, Tennessee, eventually purchasing the manufacturer and renaming it H.W. Lay & Company. In 1961, he orchestrated the merger of his company with the Frito Company to form Frito-Lay. Four years later, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, where Lay served as chairman of the board. Education: Furman University. Herman Warden Lay was born on March 6, 1909 and died on December 6, 1982. His H.W. Lay Co. gave its name to Lay's potato chips and is now part of Frito-Lay, a PepsiCo subsidiary. (Exact birth year remains publicly undisclosed).
Key Milestones
Pepsi-Cola Invented in North Carolina
Caleb Bradham formulated the original digestive cola syrup in his drugstore.
Source: en.wikipedia.orgHistoric Merger of Pepsi-Cola & Frito-Lay
Donald Kendall and Herman Lay created PepsiCo, uniting snacks and soft drinks.
Source: en.wikipedia.orgLaunch of the Pepsi Challenge
National blind taste tests shook Coca-Cola's market dominance and redefined advertising.
Source: en.wikipedia.orgRestaurant Business Spun Off
PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC) as Tricon Global Restaurants, now Yum! Brands, in 1997.
Source: en.wikipedia.orgAcquisition of Tropicana ($3.3B)
Acquired chilled orange juice leader Tropicana to dominate morning beverages.
Source: en.wikipedia.orgAcquisition of Quaker Oats & Gatorade ($13.4B)
Acquired Quaker Oats, adding sports hydration pioneer Gatorade to the portfolio.
Source: en.wikipedia.orgIndra Nooyi becomes CEO
Indra Nooyi became CEO of PepsiCo in 2006. Chief executive of PepsiCo from 2006 to 2018.
Source: wikidata.orgWimm-Bill-Dann Acquired
PepsiCo completed its acquisition of the Russian dairy and juice company Wimm-Bill-Dann in 2011.
Source: en.wikipedia.orgAcquisition of SodaStream ($3.2B) & Ramon Laguarta Appointed CEO
Acquired SodaStream to pioneer eco-friendly dispensing; Ramon Laguarta took over as CEO.
Source: en.wikipedia.orgStrategic Distribution Alliance with Celsius ($550M)
Secured master global distribution for fast-growing energy brand Celsius.
Source: en.wikipedia.orgpoppi Acquisition and Elliott-Backed Plan
Closed the $1.95 billion poppi deal and announced a North America cost and pricing reset in December.
Source: pepsico.comPrice Cuts on Core Snacks
Lowered prices on major Frito-Lay brands by up to 15% to recover US volumes.
Source: cnbc.comMajor Acquisitions
The Quaker Oats Company (including Gatorade)
2001Stock deal for Quaker Oats, whose most valuable asset was Gatorade.
SodaStream International
2018Acquired leading in-home sparkling water maker to expand sustainable, bottle-free hydration.
Tropicana Products
1998Acquired premium chilled orange juice leader to dominate morning breakfast beverages.
poppi
2025Added a fast-growing prebiotic soda brand to the functional beverage portfolio.
Frito-Lay, Inc. (Merger)
1965On June 8, 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to form PepsiCo, Inc. This landmark merger brought together a major soft drink company and the nation's leading salty snack manufacturer.
Keep researching PepsiCo
PepsiCo Company History FAQ
What are the major historical milestones of PepsiCo since 1898?
Key milestones: 1898 Pepsi-Cola created by Caleb Bradham; 1961 Frito-Lay formed; 1965 PepsiCo formed; 1972 entry into the Soviet Union; 1975 Pepsi Challenge; 1997 restaurant spinoff (now Yum! Brands); 2001 Quaker Oats and Gatorade; 2018 SodaStream; 2021 pep+; 2025 poppi and Siete acquisitions; 2026 Frito-Lay price cuts.
What was the famous 'Pepsi Challenge' marketing campaign of 1975?
Launched in 1975, the Pepsi Challenge was a well-known blind taste-test marketing campaign conducted in malls and public venues across America. When given unmarked cups of Pepsi and Coca-Cola, a majority of consumers chose the sweeter taste profile of Pepsi, dramatically boosting Pepsi's market share.
How did Donald Kendall negotiate Pepsi's historic entry into the Soviet Union in 1972?
In 1972, CEO Donald Kendall used his friendship with Soviet Premier Alexei Kosygin to negotiate an exclusive barter agreement: Pepsi became the first Western consumer product manufactured and sold in the USSR, in exchange for exclusive US distribution rights to Stolichnaya Russian vodka.
How did PepsiCo create the 'Pepsi Generation' youth culture movement in the 1960s-1980s?
Pepsi transformed advertising with the 'Pepsi Generation' campaign by marketing a lifestyle rather than just a soda. In the 1980s, under Roger Enrico, Pepsi signed historic mega-endorsements with global pop icons including Michael Jackson, Madonna, and Tina Turner.
Why did PepsiCo spin off its fast-food restaurant chains in 1997?
In 1997, PepsiCo spun off Taco Bell, KFC, and Pizza Hut into Tricon Global Restaurants (now Yum! Brands) because restaurant capital requirements were diluting returns and competing fast-food chains (like McDonald's and Burger King) refused to serve Pepsi beverages as long as PepsiCo owned rival restaurants.
How did PepsiCo handle the 2010s activist investor campaign by Nelson Peltz?
In 2013-2015 Nelson Peltz's Trian Fund Management urged PepsiCo to separate its beverage business. CEO Indra Nooyi kept the company together, and Trian later exited. A decade later, Elliott Investment Management raised similar questions in 2025 before backing PepsiCo's December 2025 plan.
What was PepsiCo's operational response to the 2022 Russia-Ukraine conflict?
In 2022, PepsiCo suspended the production and sale of global beverage brands (Pepsi, 7UP, Mirinda) and capital investments in Russia, while continuing to supply essential dairy, milk, baby food, and agricultural products in compliance with humanitarian standards.
What is PepsiCo's forward-looking strategic vision for the next decade?
PepsiCo's vision is to remain the global leader in convenient foods and beverages by winning with pep+, delivering sustainable, profitable growth through consumer-centric portfolio health improvements, zero-emission supply chains, and digital AI-driven retail execution.
In what city and country was Pepsi founded?
Pepsi was founded in New Bern, North Carolina, in the United States.
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