Pepsi Once Had the 6th Largest Navy in the World

Summary

Pepsi briefly became the 6th largest navy in the world through a unique barter deal with the Soviet Union, exchanging Pepsi for a fleet of naval vessels, which were later scrapped for materials.

Abstract

In 1959, Pepsi sought to enter the Russian market, and in a creative barter agreement, traded their product for the Russian state-owned vodka brand for resale in the U.S. As the Cold War intensified and American boycotts of Russian products began, Pepsi and the Soviet Union struck a second, even more unusual deal. Pepsi received a fleet of naval vessels, including a cruiser, a frigate, a destroyer, 17 submarines, and oil tankers, valued at $3 billion, making Pepsi the 6th largest navy in the world. However, instead of using the fleet for maritime activities, Pepsi scrapped the vessels for their steel, aluminum, and precious metals. This unconventional acquisition was met with disapproval from the U.S. government, but the CEO of Pepsi defended the deal by suggesting it was a form of disarmament. The arrangement ended with the dissolution of the USSR, and Russians eventually developed a taste for Coca-Cola.

Opinions

The author implies that the initial barter deal was a clever solution to the issue of Russia's worthless currency outside its borders.
The article humorously suggests that Russians had an exceptional fondness for Pepsi, as evidenced by their efforts to maintain access to the beverage despite political tensions.
The U.S. government's displeasure with Pepsi's acquisition of a significant naval fleet is presented with a touch of irony, highlighting the absurdity of a soft drink company owning military assets.
The CEO of Pepsi's retort to the U.S. government's concerns is seen as a witty comeback, downplaying the gravity of the situation by framing it as a contribution to disarmament.
The author seems to find amusement in the fact that the mighty naval fleet was ultimately used for scrap metal rather than military or commercial purposes.
The shift in Russian beverage preference from Pepsi to Coca-Cola after the fall of the USSR is noted with a sense of historical irony, given the previous Pepsi-Soviet relationship.

Sometimes the truth is wilder than fiction

Template taken from KnowYourMeme, Editing by me

I’m not gonna lie, there have been times in my life where a soda has definitely hit the spot. Apparently, Russians take that to a whole new level. The year was 1959 and Pepsi wanted to get into the Russian market, and Russians took one taste of the drink and loved it. The problem? Much like today, Russian currency was completely worthless outside of Russia. The two parties were determined to make a deal, and as such, they worked out a barter:

In exchange for Pepsi, the Russians would give Pepsi their state-owned Russian brand Vodka to resell in the U.S.

This deal worked great for a number of decades until the cold-war era began to heat up and Americans began to boycott Russian products. Apparently, Russians REALLY loved their Pepsi so they spent months trying to work out a new deal in order to get their beloved Pepsi to the Russian people… and they worked out an even stranger deal than the first:

In exchange for 3 Billion dollars worth of Pepsi… the Russians would outfit Pepsi with a Soviet cruiser, a frigate, a destroyer, 17 submarines, and a handful of oil tankers. This immediately made Pepsi the 6th largest Navy in the world, and what they did with it was even crazier…

Plundering

In order to make the most out of their new Navy and fleet, they reigned terror on the seas and smaller coastal countries for nearly a decade. They would sink pirate ships to steal their money, charge taxes to shipments coming in and out of some countries, and…

Ok, that last part was a lie. They actually just scrapped all of the fleets and used the various steel, aluminum and precious metals for resale. It was the equivalency of trading steel for Pepsi, but that isn’t quite as interesting of a story now is it? Nonetheless, by the numbers, Pepsi actually boasted one of the largest navies in the world for a short time. Now, the deal was made in response to the massive ramp-up of military equipment from the Soviet Union, that… essentially became too expensive to maintain and were sitting in a ship graveyard barely staying afloat. Now, they had all of these ships and submarines laying around that couldn’t be repaired or used, so they traded it for Pepsi!

The U.S. Government wasn’t too pleased with the deal

As you can imagine, the U.S. government wasn’t too fond of a U.S. corporation now having a large enough navy to take on some large countries. In a rather hilarious response, the CEO of Pepsi stated that they shouldn’t be complaining because “We’re disarming the Soviets faster than you are.”

This deal ultimately came to an end after the fall of the USSR, and the people of Russia discovered something they like even more: Coca Cola.

Pepsi Once Had the 6th Largest Navy in the World

Sometimes the truth is wilder than fiction

Plundering

The U.S. Government wasn’t too pleased with the deal

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