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In 1989, one navy had 17 submarines and 3 warships.
Quite an impressive fleet, huh?
But no, we're not talking about the French...or the Koreans...or even the Chinese.
Instead? We're talking about:
PEPSI
A story on how a SODA COMPANY became the world's sixth largest navy:
Quite an impressive fleet, huh?
But no, we're not talking about the French...or the Koreans...or even the Chinese.
Instead? We're talking about:
PEPSI
A story on how a SODA COMPANY became the world's sixth largest navy:
We start with some history.
It was 1959 in the midst of the Cold War, and Moscow was hosting the American National Exhibition as a means of cultural exchange.
It was pure Americana.
On display were things like American TVs, American cars, and of course...
American soda.
It was 1959 in the midst of the Cold War, and Moscow was hosting the American National Exhibition as a means of cultural exchange.
It was pure Americana.
On display were things like American TVs, American cars, and of course...
American soda.
The US Vice President at the time?
Richard Nixon.
And when he came to Moscow for the event, he made it a priority to show Soviet Premier Nikita Khrushchev the true pride of the red, white, and blue:
Pepsi Cola.
Just look at Nixon's concern as Khrushchev gulped some down!
Richard Nixon.
And when he came to Moscow for the event, he made it a priority to show Soviet Premier Nikita Khrushchev the true pride of the red, white, and blue:
Pepsi Cola.
Just look at Nixon's concern as Khrushchev gulped some down!
And Khrushchev?
He was HOOKED on America's (second) favorite soda.
So just like that, for the first time, a private company founded under American capitalism began doing business in the Soviet Union.
Much to the Soviets' delight, Pepsi Cola was now everywhere to be found.
He was HOOKED on America's (second) favorite soda.
So just like that, for the first time, a private company founded under American capitalism began doing business in the Soviet Union.
Much to the Soviets' delight, Pepsi Cola was now everywhere to be found.
There was, however, one small problem.
The USSR's currency - the Soviet Ruble - was not exchangeable on international markets.
So in lieu of accepting hard currency for their soda, Pepsi instead was forced to accept:
Vodka.
The state-owned Stolichnaya, to be exact.
The USSR's currency - the Soviet Ruble - was not exchangeable on international markets.
So in lieu of accepting hard currency for their soda, Pepsi instead was forced to accept:
Vodka.
The state-owned Stolichnaya, to be exact.
From there, Pepsi began reselling Stolichnaya in the US for a pretty penny, and both sides of the business were more than happy.
But then, after the Soviet invasion of Afghanistan in 1979, Americans began boycotting Soviet products, including, of course:
Stolichnaya.
But then, after the Soviet invasion of Afghanistan in 1979, Americans began boycotting Soviet products, including, of course:
Stolichnaya.
For the Soviets...for Pepsi...it seemed as if their sweet, sweet business would come to an end.
There seemed no other currency...no other commodity...no other asset that could be used as a means of exchange.
Unless, of course, Pepsi would accept...
Warships.
And they would.
There seemed no other currency...no other commodity...no other asset that could be used as a means of exchange.
Unless, of course, Pepsi would accept...
Warships.
And they would.
In 1989, in return for some sugary, fizzy cola, Pepsi took from the USSR:
• 17 submarines
• 1 frigate
• 1 cruiser
• 1 destroyer
• Several oil tankers
Pepsi was America's second favorite cola...and now the world's sixth biggest navy.
• 17 submarines
• 1 frigate
• 1 cruiser
• 1 destroyer
• Several oil tankers
Pepsi was America's second favorite cola...and now the world's sixth biggest navy.
But that's not to say Pepsi was ready to invade anyone anytime soon.
The ships?
They were beyond repair and unusable for war.
So to monetize the fleet, a Norwegian company was hired to convert the vessels into scrap metal.
Finally, Pepsi and the USSR were back in business.
The ships?
They were beyond repair and unusable for war.
So to monetize the fleet, a Norwegian company was hired to convert the vessels into scrap metal.
Finally, Pepsi and the USSR were back in business.
And, as you'd expect, Pepsi got a whole lot of shit from the US Government...especially from President H.W. Bush's National Security Adviser, Brent Scowcroft.
Pepsi Chairman Donald M. Kendall's response, seen here?
"We're disarming the Soviet Union faster than you are."
Pepsi Chairman Donald M. Kendall's response, seen here?
"We're disarming the Soviet Union faster than you are."
But in 1991, once the Soviet Union collapsed, Pepsi and the Russians could go back to doing business the old fashioned way, using, you know...money.
And looking back...it's hard to believe that all of this actually happened.
But really -- all of it is true.
I ship you not.
And looking back...it's hard to believe that all of this actually happened.
But really -- all of it is true.
I ship you not.
For another fascinating (and far more inspiring) "wartime" story, check out the thread below on Juan Pujol García, "the spy who saved D-Day":
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