Thread by @finshots

Pepsi briefly became the 6th largest military in the world!

Here's how 👇 (1/9)

Back in the 50s, Pepsi Cola had been trying to set up shop in the USSR.

Finally in 1972, after the efforts of Pepsi executive Donald Kramer, it successfully carved a deal to sell Pepsi in USSR. With this, Pepsico became the 1st large US company to enter the Soviet market (2/9)

After entering the country, Pepsi witnessed great success.

It generated revenues to the tune of ~$500 million in 1989. As it had no competition, the company was practically minting money. (3/9)

However, another hurdle stood in the way for Pepsi. The company had to take back the money it made to its home country i.e the US. But it wasn’t that simple. (4/9)

You see, the Russian Ruble could not be converted into any other currency, neither did Soviet law allow it to be carried abroad. So the two parties resorted to barter. (5/9)

Pepsi would receive Stolichnaya Russian vodkas in exchange for its iconic carbonated drink. Pepsi then sold this vodka in America. (6/9)

Although, in 1989, the barter showed its flaws, as America was boycotting Russia for its involvement in the Soviet-Afghan war the vodka became worthless. Thus, Pepsi decided to trade something bigger.

Pepsi exchanged their cola for old submarines and warships! (7/9)

After the deal, Pepsi briefly had the 6th largest army in the world, before they sold all of it for scrap. The deal also included oil tankers which were leased out by Pepsi.

Russia is still Pepsi’s 2nd biggest market out of the US. Crazy, right? Follow for more. (8/9)

Sources:

~How Pepsi briefly became the 6th largest military in the world- Business Insider
~When Pepsi was swapped for Soviet warships- BBC

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