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John Styth Pemberton, a druggist from Atlanta, Georgia, initially used cocaine in his "French Wine of Coca, the Ideal Tonic" in 1866, modeling it on Vin Mariani. Vin Mariani was an extremely popular beverage in Europe, created by Angelo Mariani, a Corsican chemist, and it was also consumed in the United States. Because of a temperance attitude in Atlanta, Pemberton removed the alcohol from his product, using kola nuts (which contain natural caffeine) and cocaine to make the drink he named Coca-Cola. The first Coca-Cola was sold at Jacob's Pharmacy in Atlanta on May 8, 1886, according to the Library of Congress. (Cocaine was removed from the soft drink in 1903 according to the Southern Medical Journal.)
The new drink was a major success and was marketed as an "ideal brain tonic" that could treat migraines, depression, and neuralgia. Coca-Cola was marketed as a "temperance drink" (for those opposed to the use of alcohol) as well as an "intellectual beverage."
The cola syrup was originally mixed with tap water, but when mixed with carbonated water to provide quick relief to a headache sufferer, the new drink was a success and carbonated water was added as a new ingredient to the product. Pemberton sold his formula to the drink before his death. Coca-Cola was actively promoted and continues to be a major success story.
References:
Morgan, H. Wayne. Drugs in America: A Social History 1800-1980. Syracuse, N.Y.: Syracuse University Press, 1981.
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