The recipe for the soft drink Pepsi was first developed in the 1880s by Caleb Bradham, a pharmacist and industrialist from New Bern, North Carolina. He coined the name "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903.[5] The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919.[6] The company went bankrupt in 1931 and on June 8 of that year, the trademark and syrup recipe were purchased by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer, and he used the company's labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known for their soda fountains, used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. In 1935, the shareholders of Loft sued Guth for his 91% stake of Pepsi-Cola Company in the landmark case Guth v. Loft Inc. Loft won the suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then re-branded as Pepsi-Cola Company that same year. Loft restaurants and candy stores were spun off at this time. In the early 1960s, Pepsi-Cola's product lines expanded with the creation of Diet Pepsi and purchase of Mountain Dew