PEZ was invented in Austria in 1927. The first flavor was peppermint; in fact, the name PEZ is taken from the German word for peppermint: PfeffErminZ. The candy was first sold in tins, as Altoids are today; later the inventor invented a dispenser shaped like a cigarette holder and marketed the mints and their dispenser as an alternative to smoking.
The PEZ dispenser as we know it was developed in 1955. Santa Claus and Mickey Mouse were two of the original dispensers and remain among the most popular today. The dispensers are highly collectible, but the rumor that eBay was founded for the trading of PEZ dispensers is false (though eBay founder Pierre Omidyar's wife is an avid PEZ collector).
The PEZ company has had a general rule against making PEZ heads of living people. The Teutul family of Orange County Chopper fame is a notable exception (I know: RANDOM).
PEZ the candy has come in many flavors over the years, with the most popular being the classic lemon/strawberry/orange/grape variety pack. (See? No lime! PEZ is perfect.) I'm intrigued by the new SourZ flavors; gotta find me some of that.
PEZ has been featured on Seinfeld and in a Nickelback song. It also apparently played key roles in the TV series The Pretender and the movie Stand By Me.
My favorite PEZ dispenser of all time was Chewbacca. You probably have one or two lying around the house; what's your favorite?