It was created in 1934 by A.W. Leo , Tom Yates , and Ralph Harrison as an ice cream topping , and customers later discovered that it was an appealing drink when mixed with water . It was created in 1934 by A.W. Leo , Tom Yates , Ralph Harrison as an ice cream topping in a converted garage in Fullerton , Calif. ; customers later discovered that it made an appealing drink when mixed with water .