The sign, visible from Manhattan and the East River, was built in 1940 and originally installed atop PepsiCo (previously Pepsi-Cola)'s bottling factory nearby.

The original sign was manufactured by the General Outdoor Advertising Corporation and installed atop the Pepsi-Cola plant at 46th Avenue and 5th Street.

[10] A painted aluminum Pepsi bottle is to the right of the letters, with neon light tubes at its edge, and is 50 feet (15 m) tall.

[9] The only major difference is the Pepsi bottle depiction, which is 9.5 inches (240 mm) deep because it accommodates an electrical cabinet.

[9] Long Island City was developed as a commercial and industrial center in the late 19th and early 20th centuries because it was close to Manhattan and on the East River.

[12] The sign's construction came at a time when industrial concerns in Long Island City installed large signs atop their buildings, which would be highly visible from Manhattan, the Queensboro Bridge, the Long Island Rail Road, or elevated New York City Subway lines.

[6] By the late 20th century, many of the industrial concerns on Long Island City's waterfront had started to move elsewhere.

[16] The New York City Landmarks Preservation Commission (LPC) first considered the sign for city-landmark status in April 1988.

[19] At a public hearing held for the sign, two speakers including the Queens borough president's office spoke in opposition to the designation.

[26] In 2004, the PepsiCo sign was relocated 300 feet (91 m) to the south, next to Gantry Plaza State Park, and a new base was constructed.

[1][27] The temporary relocation was necessitated because of the demolition of the plant and subsequent construction of Gantry Plaza State Park.

[10][30] Under LPC regulations, landmarks typically had to be 30 years old, although the reconstructed sign' as its design was historically accurate at the time that the latter was destroyed.

[10] A JetBlue logo was temporarily installed under the Pepsi-Cola sign between August and October 2019 as part of a promotion approved by the LPC.