On Aug. 28, 1898, pharmacist Caleb Bradham renamed the custom drink he served from his New Bern, N.C. pharmacy's soda fountain from "Brad's Drink" to "Pepsi-Cola." He created the caffeinated soda as a drink that would fortify your digestive system and boost your health and energy. The new name probably came from one of the ingredients, pepsin.
He incorporated the Pepsi-Cola Company in 1902. Soon the drink would be widely produced and distributed across the country. Unfortunately for Bradham, massive fluctuations in sugar prices and rationing rules during World War I limited how much syrup he could make for his soda. In 1923, the company went bankrupt and was sold to a holding corporation for $30,000, which is a little under $567,000 in today's dollars.
Pepsi Co. has a fun write-up of its history here.
