Fun Fact

In 1989 the Soviet Union traded 17 submarines, a cruiser, a frigate, and a destroyer with Pepsico in exchange for Pepsi to be sold in the Soviet Union. This trade made Pepsi the 6th largest military power in the world at the time.

By Joseph Brimer, SunWest’s Human Search Engine

This has always been, without a doubt, my favorite historical fact of all time. Put yourself in the shoes of the CEO at the time, can you imagine a staff member walking into your office to say that the Soviet Union has offered real navy ships in exchange for your product? If you’re like me, you’re probably wondering how Pepsi pulled this off, and believe me, the backstory is just as interesting.

It actually all started in 1959 when the “American National Exhibition” was in Moscow to show the soviet nation who the U.S. was. Then-Vice President Nixon was sent to attend the opening night. By multiple accounts of those present, Nixon and Soviet leader Khrushchev got into a heated argument on the topic of whether communism or capitalism was better. It spilled into multiple rooms as the two leaders walked the exhibit, causing quite the stir. Shortly after, both leaders arrived at the Pepsi booth where Khrushchev was served the American beverage along with a Soviet made one. While the Soviet leader declared the American beverage the winner, nothing ever came of the declaration due to the Cuban Missile Crisis shortly thereafter.

It wasn’t until the mid 70’s that the beverage company and the nation were able to link up once again. In exchange for the soda, Pepsi would receive Stolichnaya Vodka to exclusively sell in the U.S. market. When the pact was close to expiring, and knowing they didn’t have enough Vodka to extend the contract, and that their currency wouldn’t be accepted; the Soviet Union did what anyone desperate enough for a caffeinated drink would do. They reached out to Pepsico with a unique idea; offer to make them the 6th largest military power in the world by giving them over $3 billion dollars worth of warships. Clearing hurdles with the U.S. Government, Pepsi agreed to the deal. Afterwards they sent the ships to a Swedish company for scrap recycling.

What are some of your favorite historical facts? We’d love to hear from you! Just drop an email to collab@swmlife.com

Joseph Brimer is a Resident Specialist here at SunWest Management. If you have a question about your Member Portal, compliance, architectural review or governance, Joseph has the answer! He relishes being a problem solver and doing for others, so he’s a perfect fit for the SunWest team! Contact Joseph at josephb@swmlife.com