"When agriculture was able to meet demand, sugar prices crashed overnight. Companies that had bet big on expensive inventory suddenly found themselves drowning in debt. Pepsi declared bankruptcy. So did RC Cola's predecessor, Chero-Cola. Coca-Cola, however, managed to secure emergency financing from a bank by offering something no other company could: their closely-guarded secret formula as collateral. That gamble paid off big time."
"By the time Pepsi made a comeback in the '30s with aggressively discounted pricing, Coca-Cola had already locked itself in as the mixer of choice in bars across the country. Some speculate this was because Coke's zestier taste and bubbles held up better against rum than Pepsi, while others thank a song called "Rum and Coca-Cola" by Morey Amsterdam (popularized by The Andrews Sister in 1940s)."
A post–World War I sugar shortage drove cola manufacturers to hoard expensive sugar, leaving many companies overleveraged when prices collapsed. Pepsi and other brands declared bankruptcy while Coca-Cola secured emergency financing by using its secret formula as collateral. That financing preserved Coca-Cola's market presence and established it as the mixer of choice in bars. Pepsi relaunching in the 1930s with discounted pricing arrived after Coca-Cola had already gained dominance. Additional factors cited for Coke's cocktail prominence include its taste and carbonation profile and cultural boosts such as the popular song "Rum and Coca-Cola."
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