How Pepsi Once Owned The World's Sixth-Largest Navy

We've all heard about how barter was formerly utilized instead of money. However, this old form of trade has been used to strike a deal in our modern society. Consider the situation between Pepsi and the Soviet Union.

The Plot!

1. So Pepsi had been striving to establish a presence in the USSR for years. After years of negotiating between Pepsi's CEO and Soviet officials, the business was finally able to negotiate an agreement to sell Pepsi in the USSR in 1971. As a consequence, Pepsico became the first big American corporation to enter the Soviet market.

But there was a catch. The Soviet Union would only let Pepsi in if they were paid in Soviet currencies for their products. That would have been equivalent to giving it away. The money was meaningless in the West, and no one in NATO would accept it. Instead, they need something to barter which would be worthy back home?

Rather than getting any of the usual goods, Pepsi agreed to take an actual military fleet. In exchange for the promised products, the Soviet Union offered Pepsi 17 attack submarines, a cruiser, a destroyer, and a frigate.

Pepsi was obviously sceptical of this unexpected proposition, but Kendall, CEO of Pepsi,?opted to take a gamble that he hoped would pay out handsomely. He agreed to the contract on one condition: Soviet ships coming into US ports during the world's largest annual fairs must have the Pepsi logo.

and they agreed, the deal was expected to be a punch to Coke's Legacy,

Coca-Cola did not have a navy as a result. Pepsi obviously intended this to be a power play,?Soon, Pepsi-branded submarines roamed the Georgia coast, terrorizing Coca-Cola. Right?

Not quite. The submarines, on the other hand,?were incapable of sailing. They weren't armed, and there was no crew either. The submarines were merely floating scraps of metal.

Pepsi possessed the world's sixth-largest military after the deal, which they later sold for mere scrap. Pepsi still sells the majority of its drinks in Russia, where it has 22% of the market.

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