During the Cold War not many people outside of the USSR knew of the Russian penchant for it’s ideological rival’s second most popular cola drink. The Soviet Union’s love affair with Pepsi-Cola started with a meeting between Premier Khrushchev and US Vice-President Nixon in 1959. As part of what was a rare cultural exchange for the time, Khrushchev was introduced to the sugary, carbonated beverage, the taste apparently meeting with the Soviet premier’s approval.
⏏️ Pepsi’s role in the Nixon-Khrushchev Kitchen Debate
So began a novel bilateral trade. With Russian rubles not valued outside of the USSR, a barter system was forged. The Russian and other Soviet people got to drink Pepsi, in return vodka (in the form of the state-owned brand Stolichnaya) was made available in the US market.
Things went smoothly enough until 1980…the Soviet invasion of Afghanistan threatened the Pepsi deal. Americans boycotted Soviet goods including Stolichnaya…the popular vodka’s sales plummeted in the US. In the late 1980s the Pepsi company—mindful that seven billion Russians were drinking Pepsi each year—hit upon a new and more unorthodox US/Soviet exchange deal.
To keep the Pepsi flowing to Russian consumers, Pepsi accepted a flotilla of ageing Soviet warships in lieu. Taking possession of 17 rusty Soviet warships plus a few other auxiliary naval vessels. The fleet was far from being in A1 shipshape condition, but it enabled the soft drink giant to boast that it possessed the world 6th most powerful navy at the time – on paper if not on water!
(Source: www.naval-encylopedia.com)
Pepsi’s move earned the displeasure of the US military but the company CEO’s slightly disingenuous rejoinder to the Pentagon was that it was dismantling the Soviet fleet faster than they were!*
Pepsi didn’t hang on to the decidedly decrepit Russian fleet for long, selling the warships to a Swedish scrap-recycling business in the early 1990s. A few years later Coca-Cola usurped it’s place in the Russian market.
____________________________
* undoubtedly Pepsi’s billion-dollar stake in the USSR remained it’s primary motive
Sites/works consulted: 👁🗨👁🗨👁🗨
’When the Soviet Union Paid Pepsi in Warships’, (Anne Ewbank), Atlas Obscura, 12-Jan-2018, www.atlasobscura.com)
‘ How Pepsi became the 6th largest military in the world‘, (Tom Kirkpatrick, We Are The Mighty, 28-Jan-2019, www.wearethemighty.com
‘Pepsi Navy: When the Soviets Traded Warships for Soft Drinks’, Sandboxx, 06-Nov-2020, www.sandboxx.com