Loft Candy Company

Loft Candy Company was founded by the London-born William Loft (1828-1919) in Manhattan after he immigrated to New York in the 1850s.

At first, he and his wife crafted handmade chocolates in their kitchen before opening a chocolate shop Canal Street in 1860. In 1919, they moved to the large plant building at 40th Avenue and Vernon Boulevard.

By 1920 Loft Candy Company became the largest retail company in United States and the company also the first retail candy store chain in America. Based in Long Island City, New York, the Loft Candy Company was a publicly held company with a $13 million candy and restaurant chain.

The company manufactured its own candies, syrups and beverages.

In 1930 the company acquired other candy retailer, the Happiness Stores and Mirror Stores in New Jersey. The combined operation owned 175 candy shop, soda fountain and tearooms.

The Loft Candy Company acquired Pepsi-Cola in 1931 and it was later merged into PepsiCo.

By 1941 Philadelphia business man Albert M. Greenfield (1887-1967) had acquired Loft Company through his business, the City Stores Corporation. He expanded Loft’s operation outside the New York area.

By 1985 it was down to just 40 stores in the New York area. The smaller company did not proper, went out of business and by the 1990s all the shops had closed.
Loft Candy Company

Charles G. Guth and Pepsi Cola Company

In 1902 Caleb Bradham incorporated the Pepsi-Cola Company and started a manufacturing operation.

The company was certified bankrupt on 1923. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured.

Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. At the time Charles Guth became Loft’ president, Guth and his family owned Grace Company, which made syrups for soft drinks in a plant in Baltimore, Maryland. Coca-Cola Company supplied Loft with cola syrup.

Loft operated over 130 soda fountains in the greater New York area. Guth believed that with that kind of volume, Loft deserved better pricing. Coca-Cola believed that Guth had no choice but to buy their syrup, and refused to offer any discount.

He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains.

Guth entered into an agreement with Roy Megargel to acquire the trademark of Pepsi and its formula and form Pepsi-Cola Corporation.

With just handful of bottles in 1934, the number grew to 315 Pepsi-Cola bottlers in 1939.

He later was sued by his partner and claimed that Guth had misused corporate assets and that his Pepsi stock should be handed over to Loft.

Loft filed a suit in a Delaware state court against Guth, Grace and Pepsi, seeking their Pepsi stock and accounting. After nearly three years of legal procedures, the court ruled that Guth, Pepsi-Cola holding belonged to Loft. Loft became a Loft subsidiary and Walter Mack was chosen to be Pepsi’s new President and Guth continuing as general manager.

After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.
Charles G. Guth and Pepsi Cola Company