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Alfred Steele
Alfred Steele
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Alfred Nu Steele (April 24, 1901 – April 19, 1959) was an American soft drink businessman who was the president and later chairman of the board of Pepsi-Cola Company from 1950 until his sudden death in 1959.

Key Information

Personal life

[edit]

Alfred Nu Steele was born on April 24, 1901, in Nashville, Tennessee. He was the son of Edgar Alfred Steele, a teacher, and his wife Fannie Bartrem.[1] His middle name "Nu" was an homage to his father's fraternity "Sigma Nu".[2] The family would later move to Missouri.[3] Steele graduated from Northwestern University in 1923, where he played football, and became an ad executive after college. He enjoyed jazz music.[4]

Steele’s first marriage was to Marjorie Mabel Garvey on December 17, 1924, in Cook County, Illinois. They had one child named Sally Ostin Steele. Sally Steele married Lieutenant John D. Comer on November 29, 1955, at the MacArthur Chapel in Tokyo, Japan.[5]

Alfred Steele would later marry Lillian Nelson in 1946 and they had a son named Alfred Nelson Steele in 1949. They divorced in 1955. His son would go on to marry a woman named Madeline Spence Haldeman in Montana.[6]

Steele’s third wife was American film actress Joan Crawford; he was her fourth husband. They married spontaneously on May 10, 1955, at the Flamingo Hotel in Las Vegas. Judge John Mendoza officiated.[7][8] Steele took on the father role for Crawford's four adopted children - Christina, Christopher, and twins Cathy and Cynthia ("Cindy"). The family would be seen at events throughout the marriage and go on vacations together. The twins grew closer to Steele; he was listed as Cathy Crawford's father in her 2020 obituary.

Joan Crawford with their adopted twins Cathy and Cynthia "Cindy"

Following Steele's death, Herbert L. Barnet, Steele's handpicked successor as chairman and CEO, appointed Crawford to the board of directors. In her later career, product placement for Pepsi was included in several films including Strait-Jacket (1964) and Berserk! (1967). Crawford would remain on the Pepsi-Cola board of directors until 1973. “I thought I could be different, that I could have it all," said Joan Crawford after Steele died. "And I did — for a little while — with Alfred. I’ll always treasure our brief time together.”[9]

In 1956, the couple moved to New York, purchasing and merging two top-floor apartments at 2 East 70th Street into a spacious eight-room family penthouse with views of Central Park.[9] Broadway columnists dubbed it "Taj Joan." While work was being completed, they stayed at the Waldorf Astoria. Construction took a year and cost $387,011.65 USD ($4.06 million USD adjusted for inflation in 2023[10]). The apartment was decorated by Crawford’s close friend, interior designer William Haines, totaling an extra $80,000.00 USD ($840,000.00 USD adjusted for inflation in 2023).[11] The apartment was paid for by Pepsi as a loan with 6% interest; the loan was repaid in 1958.

Career

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Alfred Steele began as a geologist,[12] and went on to work for the Chicago Tribune, Standard Oil of Indiana, and D'arcy Advertising Company.

While working for the Union Bed & Spring Company, Steele conceived the "Sono-Meter", a device that measured the energy lost while people tossed and turned on an uncomfortable mattress. The company's sales increased 80% within nine months.[13]

Later, Steele became vice president of marketing for The Coca-Cola Company on June 14, 1945.[14][15] While at Coca-Cola, he earned the nickname "Pally" as he often remarked, "Let's try this out, Pally".[16]

In 1949, Steele took over as vice president of Pepsi-Cola, and as president later that year.[17] In 1950, he became CEO, appointing Herbert L. Barnet as the new president. In a five-year span, Steele helped steer profits up 112% compared to Coca-Cola which had only climbed 28%. Steele defined his strategy as “Beat Coke”.[18] Under his leadership, the company launched massive advertising campaigns and sales promotions during the '50s, resulting in an 11-fold increase in net earnings. Sales tripled between 1955 and 1957. As a result, Pepsi-Cola became Coca-Cola's primary competitor.[19]

While opening a plant in Atlanta, Steele remarked Coca-Cola was not Pepsi's biggest competitor - tea and coffee were. He added, "It's a tribute to the Coca-Cola Company that the number of its former employees are on the management team helping Pepsi-Cola move up."[20]

Steele is credited with helping push the change of the old Pepsi slogan "twice as much for a nickel, too" stating it was a liability to the company, reducing Pepsi to the "poor man's Coca-Cola". He pushed for a focus on quality, not quantity. Other initiatives for Pepsi were the adaptation of vending machines, global expansion for selling and producing, and for the parent company to help arrange funds with banks for bottlers to buy equipment with no down payment. In 1957, Crawford and Steele toured Europe, the Middle East, and Africa for Pepsi-Cola’s recent expansion.

Steele introduced new cost accounting methods and helped bottlers purchase new trucks and equipment. He further reduced the sugar content and unsweetened the syrup of Pepsi products, and introduced Pepsi to developing countries. Under Steele's leadership, Pepsi built a new headquarters at 500 Park Avenue in New York City.[21]

Once during a meeting, a colleague suggested that Steele should use his wife’s star power to increase sales. Steele refused, but Crawford said she was happy to assist if it would benefit her husband.[22] According to Steele, "I hate to use my wife to help me sell, but let's face it — she does. On these trips, most of our business is done through top government officials. At those levels, Crawford is fabulous."[11] Some credit this as one of the first instances of using celebrity power to sell products. To quote a 1956 New York Times article: "Together [Alfred Steele and Joan Crawford] constitute one of the most successful teams in America's public and private life."[2]

In 1957, 11-year-old Chester Arnold Jr. was given five shares of Pepsi, but after watching The Solid Gold Cadillac, the boy was compelled to write to Steele. In the letter, Arnold asked Steele if having the shares meant he was “crooked like those people in the movie.” Steele wrote back, inviting Chester and his family to New York to meet him and see the company. Steele supplied accommodations for the family at the Waldorf Astoria. For three days, the family was shown around the city and spent time with Steele and Crawford. They attended board meetings and were escorted by police to one of the most elaborate ribbon-cutting ceremonies Pepsi-Cola hosted at the time.[23]

Alfred Steele was selected as chairman of the 1959 fund campaign of the National Multiple Sclerosis Society on November 6, 1958.[24] He died before the event. Joan Crawford was named chairman in his place. The fund was renamed the "Alfred N. Steele Memorial Campaign for the MS Hope Chest."[25]

Death

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Alfred Steele and Joan Crawford's grave at Ferncliff Cemetery and Mausoleum

On the morning of April 19, 1959, five days before his 58th birthday, Steele was found on the floor next to his bed by Crawford, who immediately called a doctor. A traumatized Crawford covered Steele in blankets and yelled "Get warm, get warm!" The physician who examined Steele pronounced him dead of a massive heart attack.[26] His death came as a shock to his colleagues, friends, and family, who praised him for his leadership and vision at Pepsi-Cola.[27]

Steele’s funeral was held April 22, 1959, at New York's Saint Thomas Episcopal Church. Nearly 1200 people attended. His remains were interred in Ferncliff Cemetery and Mausoleum in Hartsdale, Westchester, New York. Upon Crawford's death in 1977, the couple's ashes were interred in a crypt together.[28]

Two years after Steele's death, on January 8, 1961, Crawford and twins Cathy and Cynthia unveiled a plaque honoring Steele at the Albert Einstein Medical Center in Philadelphia, Pennsylvania.[29]

Film and television appearances

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Film and television appearances[30]
Film Year Role Notes
Hollywood Greats 1978 Self (S2 E1) Archive footage
Joan Crawford: Always The Star 1996 Self Archive footage
Joan Crawford: The Ultimate Star 2002 Self Archive footage

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Alfred Nu Steele (1901–1959) was an American businessman best known for serving as president and of the Pepsi-Cola Company from 1950 until his death, during which he transformed the struggling firm into a major competitor to by overseeing a 112% sales increase from 1950 to 1955, boosting earnings from $1.3 million in 1950 to approximately $11.5 million in 1958, and expanding operations that resulted in 170 new U.S. plants and 140 overseas facilities by 1960. Under his leadership, Steele restructured the company by implementing , reducing executive staff, dividing the U.S. into eight regional districts, and redesigning the product with a desweetened formula and 8-ounce bottle while shifting to emphasize refreshment and quality. He was also the fourth husband of Hollywood actress from 1955 onward, whose celebrity status he leveraged to enhance Pepsi's glamorous public image through her endorsements. Born in , Steele graduated from in 1923. His professional journey began at the , followed by roles at the of and the Columbia Broadcasting System, before he advanced to vice president positions at the D'Arcy and the , where he honed his expertise in marketing consumer products. Joining Pepsi-Cola in 1949 as first vice president, Steele's aggressive sales strategies—including personally logging over 100,000 miles annually on business travel—drove a 112% sales increase from 1950 to 1955 and elevated earnings per share from $0.28 to $1.60. Steele was married three times, with his union to Crawford marking his final and most publicized partnership; the couple resided in a lavish apartment overlooking , which symbolized their high-profile lifestyle amid his demanding executive role. He left behind a son, Alfred Nelson Steele, and a daughter, Mrs. , from previous marriages. Steele died of a heart attack on April 19, , at age 57 in his New York home, just as Pepsi's new building—now a —was nearing completion under his oversight. Beyond business, he served as chairman of the National Society fund campaign, reflecting his .

Early life and education

Birth and family background

Alfred Nu Steele was born on April 24, 1901, in Nashville, Tennessee, to Edgar Alfred Steele and Fannie Bartrem Steele. Edgar, born in 1867 in Albion, Michigan, to a Methodist minister, worked as a professor at Nashville University following his marriage, later becoming an international secretary for the YMCA. Fannie, born January 1, 1870, in Middleport, Ontario, Canada, had moved with her family to Michigan, where she graduated from Albion College in 1898; the couple married on August 15, 1899, in Owosso, Michigan, before relocating to Nashville shortly thereafter. As the only child in the family, Steele grew up in a middle-class shaped by his parents' professional pursuits and educational backgrounds during the Progressive Era, a time of social reform and economic growth in the American South. Edgar's roles in academia and international service provided a stable, intellectually stimulating environment, while Fannie's Canadian roots and upbringing added a layer of Midwestern sensibility to the family's dynamics in Nashville's burgeoning urban setting. The family's early relocations, including moves to , , for Edgar's work and Abingdon, , in 1904 for his position at Hedding College, exposed young Steele to diverse environments and global perspectives through his father's travels, fostering an early awareness of broader opportunities that would influence his later path toward business studies. This foundation in a mobile, educated household ultimately led him to pursue a commerce degree at .

Education

Alfred Nu Steele, born in , to a family that encouraged educational pursuits, enrolled at in 1919. Steele graduated from on June 18, 1923, earning a degree in commerce. His studies in the School of Commerce and Business Administration provided a foundational understanding of business principles, , and management, which aligned with emerging opportunities in the and sectors during the early . During his undergraduate years, Steele actively participated in extracurricular activities that developed his and interpersonal skills. He played football for the team, served as a cheerleader, and held positions on the . Additionally, he was involved in the (ROTC) and various social clubs, including the Interfraternity Council, which fostered networking and organizational experience relevant to future professional endeavors in and promotion. No specific academic honors are recorded from his time at Northwestern, though his engagement in campus life reflected a proactive approach to personal and professional growth.

Career

Early career

After graduating from in 1923 with a degree in business, Alfred Steele launched his professional career in the media and sales sector by joining the , where he took on roles in and sales. This entry-level position provided him with foundational experience in promoting consumer products through print media and building client relationships in a competitive market. By the late and early , Steele transitioned to more specialized advertising roles, beginning with his appointment as advertising director at of . In this capacity, he oversaw promotional strategies aimed at boosting during the post-Depression recovery, emphasizing innovative approaches to consumer engagement that highlighted the company's products' reliability and accessibility. His work at marked an early demonstration of his ability to drive revenue through targeted in the consumer goods industry. He followed this with a stint at the Columbia Broadcasting System as a sales executive. Steele's growing expertise led him to the D'Arcy Advertising Company in the late , where he advanced to and managed accounts for major brands, including early involvement with that showcased his sales acumen. Notable among his contributions were campaigns that integrated and media placement to enhance brand visibility, earning him recognition within the community for effective strategies in competitive sectors by the end of the decade. This period solidified his reputation as a rising figure in before his ascent to higher corporate .

Coca-Cola executive

In 1945, Alfred Steele joined The as a , a newly created position leveraging his prior experience as at the D'Arcy Advertising Agency, where he had managed the account. In this role, he was tasked with coordinating the company's merchandising activities, encompassing , , bottler relations, and employee training programs. Steele's efforts focused on integrating these functions to support Coca-Cola's growth amid the post-World War II , when the company rapidly increased its domestic bottling and distribution network to meet surging consumer demand. His oversight of and bottler relations played a key part in streamlining operations and enhancing during this period of industry consolidation and rising . By early 1949, Steele departed Coca-Cola after four years, citing an increasingly alienating work environment and enticed by a competitive offer from rival Pepsi-Cola to serve as its vice president in charge of domestic operations. This move marked a pivotal shift in his career, driven by ambitions for greater executive influence in the soft drink sector.

Pepsi-Cola leadership

In 1949, Alfred Steele joined Pepsi-Cola as first vice president in charge of domestic operations, bringing his extensive experience from , where he had served as a senior executive, providing a competitive edge in challenging the market leader. He was promoted to president in 1950, succeeding Walter Mack, who transitioned to chairman of the board, and by 1955, Steele had risen to chairman and . Under his leadership, Pepsi-Cola underwent a comprehensive , including the implementation of a decentralized structure that empowered regional operations and fostered greater autonomy. Steele's major innovations centered on revitalizing the brand's image through aggressive marketing campaigns in the 1950s, which targeted the emerging middle class and young adults to shed Pepsi's longstanding "poor man's cola" perception. He spearheaded the change of the company's slogan from "Twice as Much for a Nickel, Too," which he viewed as a liability reinforcing the bargain-brand stigma, to more upscale messaging like "Be Sociable, Have a Pepsi," emphasizing social appeal and refreshment. These efforts included extensive television advertising and promotions that highlighted Pepsi's larger bottle sizes—such as the established 12-ounce format positioned against competitors' smaller offerings—to appeal to family and middle-class consumers seeking value and quality. Steele drove significant business expansions, particularly in international markets, by establishing Pepsi-Cola International Ltd. in the mid-1950s and personally overseeing the development of bottling plants through extensive global travel, including tours of and in 1957. These initiatives, combined with standardized syrup formulas and enhanced branding, contributed to a dramatic financial turnaround; Pepsi-Cola's profits, which had reached a postwar low of $1.3 million in 1950 amid near-flat fortunes, surged to $13 million in 1959, representing about a 10-fold increase and solidifying the company's profitability by the mid-1950s. This growth was largely at the expense of , as Pepsi gained substantial through Steele's strategic focus on and expansion.

Personal life

Marriages prior to Joan Crawford

Alfred Steele's first marriage was to Marjorie Mabel Garvey on December 17, 1924, in . The couple had one daughter, Sally, born on January 8, 1930, in , . This marriage lasted approximately two decades before ending in divorce around 1945. His second marriage was to Lillian Nelson in 1945. They had one son, Alfred Nelson Steele, born circa 1951. The union ended in divorce in 1955. These early marriages remained relatively private, with limited public details available, and provided Steele personal stability during the initial phases of his executive career in and beverages.

Marriage to Joan Crawford

Alfred Steele and Joan Crawford first met in 1954 through mutual business contacts in the entertainment and beverage industries, with Steele serving as a high-ranking executive at Pepsi-Cola Company. Their connection deepened quickly, leading to an impromptu elopement; on May 10, 1955, the couple married at 2 a.m. in a private ceremony at the Flamingo Hotel in Las Vegas, Nevada, officiated by a municipal judge, with only Crawford's secretary and Steele's attorney as witnesses. The blended their families, as Steele assumed the role of to Crawford's four adopted children: Christina (adopted 1940), (adopted 1943), and twins and (adopted 1947). Initial interactions were awkward, with Christina later recalling her first meeting with Steele as strange yet marking the start of his paternal influence in the household. Steele, who had two children from a previous , integrated into family life, providing stability amid Crawford's demanding career. Following the wedding, Crawford made significant personal adjustments, relocating from her longtime home to to align with Steele's business commitments. In 1956, the couple began constructing a luxurious duplex apartment on , symbolizing their shift toward a high-society East Coast lifestyle focused on corporate and social engagements rather than Hollywood glamour. This transition required Crawford to adapt to a more structured, business-oriented routine, though she described the early years of their union as filled with happiness and mutual support.

Later years and death

Final years at Pepsi-Cola

Following his marriage to actress in May 1955, Alfred Steele's leadership at Pepsi-Cola increasingly intertwined personal and professional spheres, with Crawford emerging as a key promotional figure for the company. Starting that year, Crawford actively participated in Pepsi's marketing efforts, appearing in print advertisements and television commercials that leveraged her Hollywood stardom to enhance the brand's visibility. Her involvement extended to advocating for product placements in her films and attending high-profile company events, such as the annual stockholders' meeting, where her presence helped cultivate a glamorous image for amid its competition with . These efforts contributed to a notable sales uptick, as Pepsi's net earnings grew substantially during the late 1950s, reflecting the synergistic boost from Crawford's celebrity endorsement. Under Steele's direction as chairman of the board from August 1955 onward, Pepsi-Cola pursued aggressive international expansions in the late 1950s, focusing on establishing new bottling plants and penetrating emerging markets. In 1957, Steele oversaw the company's push into , the , and , where he introduced improved methods to streamline operations and support plant openings. By 1958, these initiatives had propelled Pepsi to become the world's second-largest soft-drink producer, with earnings before taxes reaching record levels and sales volume expanding by over 180% since 1950. Although no major mergers occurred during this period, Steele emphasized supermarket distribution and large-scale campaigns to drive domestic growth, positioning Pepsi as a premium alternative in the postwar consumer boom. The couple's marriage proved a promotional asset, blending with business as they jointly traveled for events, amplifying the company's global outreach. In 1957, Steele and Crawford toured , the , and together to inaugurate new facilities, where her fame facilitated meetings with local officials and boosted . Similar collaborative trips continued into 1958 with a six-week sales drive across and the , and in early 1959, they embarked on a cross-country "" tour to engage bottlers and promote the brand directly. These ventures not only advanced Pepsi's infrastructure but also personalized Steele's strategic vision, enhancing the company's public image through shared high-profile appearances.

Death

Alfred N. Steele died on April 19, 1959, at the age of 57, from a heart attack while asleep in his apartment in . His wife, , discovered him upon waking that morning. Funeral services for Steele were held three days later, on April 22, 1959, at St. Thomas on West 53rd Street in . The service drew an estimated 1,200 mourners, including Crawford, Steele's daughter Sally, and several Pepsi-Cola executives who paid tribute to his leadership. He was subsequently interred in the Ferncliff at in Hartsdale, . In response to Steele's sudden passing, Pepsi-Cola swiftly transitioned leadership to maintain stability; Herbert L. Barnet succeeded him as chairman of the board, while Crawford was elected as the company's first female director at the annual meeting shortly thereafter. The company expressed profound shock at the loss of its driving force behind recent growth initiatives.

Legacy and media appearances

Business legacy

Alfred Steele's tenure as president of Pepsi-Cola from 1950 to , followed by his role as chairman and until his death in , marked a pivotal turnaround for the company, transforming the struggling company, which had declining sales and low profitability, into a formidable competitor to . Upon assuming leadership, Steele inherited a firm struggling with declining sales and a reputation as a "poor man's cola," but he implemented structural reforms, including a more autonomous management system that empowered regional bottlers and streamlined operations. These changes enabled Pepsi to capture significant market share from , with net income rising from $1.6 million in 1950 to $9.5 million by . By the end of the decade, overall sales had quadrupled since 1950, establishing Pepsi as the second-largest producer in the United States. Steele's innovative marketing strategies were instrumental in this resurgence, particularly his emphasis on aggressive and promotions that elevated Pepsi's image. He launched extensive national campaigns, including television advertisements that depicted Pepsi being served on silver trays to counter the discount perception, which helped reposition the product for broader appeal. A key aspect of his approach was pioneering celebrity endorsements, utilizing high-profile figures like actress to enhance visibility and credibility, a tactic that foreshadowed modern in the beverage industry. These efforts not only drove consumer engagement but also contributed to climbing from 28 cents in 1950 to an estimated $1.60 by 1955. Posthumously, Steele's legacy endures through Pepsi-Cola's sustained dominance in the soft drink sector, with his foundational strategies credited for the company's long-term growth into a global powerhouse. Historical assessments highlight his revitalization of Pepsi during the as a benchmark for corporate turnarounds, emphasizing his shift from cost-cutting to brand-building that propelled the firm toward profitability and market expansion. While no formal awards were bestowed upon him during his lifetime, his influence is recognized in industry analyses as having laid the groundwork for Pepsi's rivalry with that persists today.

Film and television appearances

Alfred Steele's on-screen appearances were sparse and largely connected to his role as Pepsi-Cola's president and his marriage to actress . His most notable outing occurred on August 7, 1956, when he joined Crawford for an interview on the program Picture Parade, hosted by Peter Haigh, during their stay in for the filming of . In the segment, Steele briefly discussed Crawford's qualities as a wife and mother, marking a rare public media moment for the executive. Steele also featured in promotional television advertising for -Cola. On November 27, 1957, he appeared alongside Crawford and their adopted daughters, and Cindy, in a national commercial that aired during NBC's broadcast of Annie Get Your Gun. The family-oriented spot depicted them in a setting, emphasizing as a sophisticated beverage served on silver trays—a strategy Steele had helped develop to elevate the brand's image. Additional joint promotional footage with Crawford, such as clips from their 1957 -sponsored trip to and a 1959 event in , , was captured but primarily used in non-broadcast contexts rather than regular TV programming. Following Steele's death in 1959, his image appeared in archive footage within several documentaries about Crawford's life and career. These include Joan Crawford: Always the Star (1996), which incorporated clips of Steele from their personal and promotional moments, and Joan Crawford: The Ultimate Movie Star (2002), featuring similar archival material to illustrate her marriage and involvement. No verified film cameos or other scripted roles for Steele have been documented.

References

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