Despite the Cold War, the United States and the Soviet Union had all kinds of trade relations, as both countries had large markets.
In 1959, American companies held a trade fair in Moscow, and one of the Pepsi executives invited the then leader of the Soviet Union, Nikita Khrushchev, to taste Pepsi.
The chef enjoyed Pepsi. Next to Khrushchev stands former United States President Richard Nixon, who seems to be watching intently.
Khrushchev liked it, and whether it was through the leader’s admiration or something else, a very special relationship developed between the Soviet Union and beverage giant Pepsi.
An agreement that allowed Pepsi to have the sixth largest naval fleet in the world for a while.
A dream affair
Thirteen years later, in 1972, the Soviet Union finally made a decision about which soda allowed into the hands of Soviet citizens, and much to Coca Cola’s chagrin, Pepsi was granted the exclusive license to sell soft drinks to the ‘Soviet Union.
But since the Soviet ruble was not a particularly popular currency internationally, Pepsi agreed to instead obtain the exclusive license to sell Stolichnaya vodka in the United States. Like everything else during those years, Stolichnaya’s production was state-sponsored.
Both sides of the deal were happy
With little or no other types of vodka available in stores in this country, Pepsi owned the vodka market and both parties were most happy with the deal.
Vodka ban based on misunderstanding
Pepsi exploded in the Soviet Union and Stoli vodka exploded in the United States. Year after year after year.
Even though the Soviet Union collapsed in 1991 and the deal was no longer valid, Pepsi and Stolichnaya continued their business relationship as if nothing had happened.
Until 2013, when a baby entered the boat. Then Americans began to boycott Stoli vodka in protest against Russian policy on gay issues, and sales of Stoli vodka plummeted.
Which was actually quite silly because the Stolichnaya factory had long since left Russia and moved to Latvia.
It is not unlikely that one of the ships looked like this.
Not a treasure ruble
But let’s go back to how the Pepsi company proceeded to acquire a fleet.
There had actually been some hiccups in Stoli vodka sales in the United States. In 1984, the sale of the drink was banned in the United States due to the Soviet invasion of Afghanistan.
Then Pepsi got in trouble. They didn’t want to lose the Soviet market, but they were no longer paid for soda in the form of vodka. So Pepsi executives traveled to the Soviet Union to renegotiate, that country’s executives had to be able to somehow afford the soda instead of the super popular vodka.
But there were few good mintages in the Soviet Union in the 1980s, and there were practically no rubles in the treasury.
What was there to do?
The Soviets also didn’t want to lose their Pepsi and made a very unusual offer.
Pepsi advertised in large letters in Moscow.
The White House is not happy
Pepsi would continue to send soda to the Soviet Union, since the country drank a billion bottles a year, but in return Pepsi would receive a battleship, a destroyer, a frigate and seventeen submarines. Did they even add a few tankers.
Pepsi accepts the offer and thus officially becomes the owner of the sixth largest military fleet in the world, much to the delight of the White House.
Stole an advertisement in the United States.
However, the Pepsi Company did not use arms, not even against arch-enemy Coca Cola. In fact, it was actually very old equipment, and most of it was broken or useless.
Then Pepsi sold the majority of the “fleet” for scrap and the rest was sold to collectors.
Cooperation between the companies has long ended, but it still lives on in its former glory, as Pepsi is still the best-selling soft drink in Russia, and Stolichnaya is the best-selling vodka in the United States.
