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Sluggo was childhood friends with Vorp. During one of their walks through the Bowog Bog, Vorp tricked Sluggo into drinking from a fetid pool of standing water. Surprisingly, Sluggo found the water tasted "like eel," and soon after, Eelwasser was dominating the Ferengi Alliance beverage market. With their new wealth, the two friends bought a mansion, which they shared with a collection of albino fangcats.
About forty years later, Sluggo was enticed to leave Vorp by a consortium of rival beverage makers, who offered him sixty-five percent of the profits on their new drink if they could name it after him. Sluggo agreed, and quickly brought Slug-o-Cola to seventy-one percent of the beverage market. (DS9 reference: Legends of the Ferengi)