PEPSI was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi-Cola on August 28, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.

In 1898, Caleb bought the trade name "Pepsi Cola" for $100 from a competitor that had gone broke. At the same time Bradham's neighbor, an artist designed the first Pepsi logo.