Alfred Steele
Alfred Nu Steele | |
|---|---|
| Born | Template:Birth date Nashville, Tennessee, U.S. |
| Died | April 19, 1959 (aged 57) |
| Occupation | Business executive |
| Years active | 1923–1959 |
| Known for | President and chairman of the board of Pepsi-Cola Company |
Alfred Nu Steele (April 24, 1901 – April 19, 1959) was a prominent American executive in the soft drink industry who held the positions of president and later chairman of the board at the Pepsi-Cola Company from 1950 until his unexpected passing in 1959.
Personal life
Steele was born in Nashville, Tennessee to Edgar Alfred Steele, an educator. His middle name, "Nu," was a tribute to his father's fraternity, "Sigma Nu." The family eventually relocated to Missouri. He completed his studies at Northwestern University in 1923, where he also participated in collegiate football, before embarking on a career in advertising.
His first marriage, to Marjorie Mabel Garvey in 1924, resulted in one daughter, Sally Ostin Steele. Steele’s second marriage to Lillian Nelson in 1946 produced a son named Alfred Nelson Steele; the couple divorced in 1955.
In 1955, Steele wed actress Joan Crawford, becoming her fourth spouse. He assumed a fatherly role for Crawford’s four adopted children—Christina, Christopher, and twins Cathy and Cynthia ("Cindy"). The family was often seen attending social functions and vacationing together. Following Steele’s death, Herbert L. Barnet, who succeeded him as chairman and CEO, appointed Crawford to the Pepsi-Cola Company board of directors. She served on the board until 1973 while Pepsi products were featured in several of her films.
In 1956, Steele and Crawford relocated to New York City and combined two penthouse apartments on the top floor at 2 East 70th Street into an eight-room residence overlooking Central Park. The renovation expenses amounted to $387,011.65 (equivalent to $4.06 million in 2023), with interior decoration by William Haines costing an additional $80,000 ($840,000 in 2023). Pepsi financed this purchase through a loan at a 6% interest rate, which was fully paid off by 1958.
Career
Alfred Steele initially worked as a geologist and held positions at the Chicago Tribune, Standard Oil of Indiana, and D'arcy Advertising Company. While employed at Union Bed & Spring Company, he developed the "Sono-Meter," which contributed to an 80% increase in sales within nine months.
In 1945, Steele became vice president of marketing at The Coca-Cola Company, where he earned the nickname "Pally." He transitioned to Pepsi-Cola in 1949 as vice president and was soon promoted to president. By 1950, as CEO, he appointed Herbert L. Barnet as president and spearheaded efforts that resulted in a 112% profit growth over five years—significantly surpassing Coca-Cola's 28%. His motto was straightforward: “Beat Coke.” Under his guidance, aggressive marketing campaigns and promotional activities during the 1950s led to an elevenfold increase in net profits and tripled sales between 1955 and 1957, firmly positioning Pepsi as Coca-Cola's primary rival.
While inaugurating a new facility in Atlanta, Steele observed that tea and coffee were more formidable competitors than Coca-Cola itself. He also recognized the advantage of having former Coca-Cola executives on Pepsi’s leadership team.
Steele advocated retiring Pepsi’s outdated slogan "twice as much for a nickel, too," which he believed confined the brand to being perceived as a "poor man's Coca-Cola." He prioritized product quality over quantity and championed initiatives such as expanding vending machine usage, pursuing international markets, and providing financial assistance to bottlers for equipment acquisition without requiring down payments. In 1957, Steele and Joan Crawford embarked on a tour across Europe, the Middle East, and Africa to promote Pepsi's global expansion.
He introduced innovative cost accounting techniques, supported bottlers in upgrading machinery, reduced sugar content in Pepsi beverages, and targeted emerging markets for growth. During his tenure, Pepsi established new corporate headquarters at 500 Park Avenue in New York City.
Although initially hesitant to capitalize on Joan Crawford’s fame for promotional purposes, Steele eventually acknowledged her role in facilitating business relationships with high-ranking government officials overseas. This partnership is regarded as an early instance of celebrity endorsement within corporate marketing strategies.
In 1957, Steele personally connected with young investor Chester Arnold Jr., inviting him and his family to New York for an immersive experience involving board meetings and major company events—demonstrating his dedication to engaging shareholders.
Late in 1958, Steele was appointed chairman of the National Multiple Sclerosis Society’s fundraising campaign for 1959 but passed away before its commencement. Joan Crawford succeeded him as chairwoman, and the campaign was renamed the "Alfred N. Steele Memorial Campaign for the MS Hope Chest."
Death
On April 19, 1959, Steele succumbed to a severe heart attack. His wife, Joan Crawford, was the one who found him and promptly summoned medical assistance. The sudden nature of his passing deeply affected both his family and professional associates, who praised his exceptional leadership and foresight during his tenure at Pepsi-Cola.
Steele’s funeral service was held on April 22, 1959, at Saint Thomas Episcopal Church in New York City, drawing an attendance of almost 1,200 individuals. He was laid to rest at Ferncliff Cemetery located in Westchester, New York. Following Joan Crawford’s death in 1977, their ashes were interred together within a shared crypt.
In 1961, a commemorative plaque honoring Steele was unveiled by Crawford and their twins at the Albert Einstein Medical Center in Philadelphia.
Film and television appearances
| 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 |