Caleb Bradham, a pharmacist by trade, initially created 'Brad's Drink' around 1893 in his drugstore located in New Bern, North Carolina. The beverage was a mix of sugar, water, caramel, lemon oil, nutmeg, and a few other natural additives, aimed at being a refreshing drink to assist digestion. By 1898, as his drink gained traction and popularity among locals, Bradham recognized the potential for broader appeal and the necessity for a catchy name that could capture consumer interest. This led to the rebranding of 'Brad's Drink' to 'Pepsi-Cola'.

The name 'Pepsi' was inspired by the digestive enzyme pepsin, a common ingredient thought to improve digestion, while 'Cola' highlighted its cola nut flavor, which was popular at the time. This strategic rebranding was significant for its marketing implications; it not only differentiated the product from competitors but also emphasized the beverage's purported health benefits. As Bradham moved forward with this new identity, he began to create a more systematic approach to production and distribution, laying the groundwork for the commercialization of carbonated beverages.

In the years following the rebranding, Bradham expanded his reach by bottling the drink and marketing it beyond his local region. By the early 20th century, Pepsi-Cola was established in various markets across the United States. The shift from 'Brad's Drink' to 'Pepsi-Cola' symbolized more than just a name change; it marked the beginning of a new era in the beverage industry, where branding and marketing played critical roles in the success of products.