17 Facts About Charles Guth

Charles George Guth was an American businessman, who, as executive of the Loft Candy Company, purchased the trademark and the syrup recipe of the twice-bankrupt Pepsi-Cola Company.

Charles Guth was President of Loft Candy Company from 1930 to 1935 and President of Pepsi-Cola Company from 1931 to 1939.

Charles Guth was born on June 3,1877 in Philadelphia, Pennsylvania to Emil Guth of Dresden, Germany.

Charles Guth was later cleared of all charges by both a coroner's jury and a grand jury.

The NAACP noted in its annual newsletter that the "not guilty" verdict in Charles Guth's case was "a woeful miscarriage of justice".

Charles Guth remained president of Loft until he resigned in 1935 amidst a stockholder revolt arising from his using Loft's resources to build his other company, Pepsi-Cola Company.

Charles Guth owned a family business, Grace Company, which made syrups for soft drinks in a plant in Baltimore, Maryland.

Charles Guth was supposed to pay him a $25,000 annual royalty.

Charles Guth never paid the royalty and Megargel sued him for $11,000, even though the amount Charles Guth owed was near $70,000.

The lawsuit was settled out of court with Charles Guth giving Megargel $35,000 and Megargel's giving Charles Guth his 97,000 remaining shares.

However, Charles Guth did not have any success with the company and almost declared bankruptcy himself.

In 1935, Loft sued Charles Guth for breaching his duty of loyalty to the company by failing to sell the syrup formula to Loft, and instead appropriating it for himself.

Loft argued that while its president, Charles Guth used Loft's assets, credit, finances, facilities and employees to build up the other company.

Charles Guth argued that the opportunity came to him personally and that it was out of Loft's business sector.

Charles Guth was then removed from the board and replaced with Walter Mack.

Charles Guth left Pepsi shortly before his appeal was denied.

Charles Guth died on May 24,1948 in Baltimore, Maryland.