Many people still remember the Cola Wars of the early 1980s with nostalgia. At the time, Coke and Pepsi were aggressively competing for the number one spot in the soda market. Fortunately for everyone, it didn’t involve any physical confrontation. However, if it had, Pepsi might have been the clear winner. Let’s find out why.
You might also enjoy:
- How to Open a Brokerage Account & How to Choose the Right Broker
- Futures Spread Trading – Guide on How to Trade Spreads in Futures
In 1959, Eisenhower wanted to start relaxing some of the tensions between America and the Soviets. He arranged an exhibit to introduce Moscow to some American culture and products, and he sent Richard Nixon, who was Vice President at the time. Nixon and Khrushchev ended up getting into a fight over politics, in a moment that likely surprised no one on the planet.
The VP of Pepsi was there at just the right time with a nice cold glass to cool off Khrushchev. That’s how the story goes, at least. The accuracy of that anecdote is hard to confirm, but it is clear that a deal was struck. In 1972, Pepsi started supplying the USSR with their drinks.
Bartering for Pepsi
Now, here is the first amusing part of the story. Soviet money was not useful to Pepsi. Instead, they paid in that famous Russian commodity: vodka.
It gets much better though.
In the 1980s, vodka wasn’t paying the bills for Pepsi like before. Instead, they went to the next logical solution: a Cold War Era naval fleet!
This was complete with one cruiser, one destroyer and a frigate, backed up by 17 submarines. This temporarily made Pepsi the 6th largest military power in the entire world!
It was not to last though. For better or for worse, Pepsi is more about a refreshing drink than about naval operations. They sold the ships for scrap to a company in Sweden.
The most quotable part of this story comes from the former President of Pepsi, the late Donald Kendall. He once said to the NSA, “We are disarming the USSR faster than you!”
Get to know the Trader Career Path
We hope you enjoyed this article.
Put your skills to the test with the Trader Career Path, our funding evaluation designed for traders to prove their skills and build a trading career. Traders who pass the evaluation get a funding offer from a proprietary trading firm and keep 80% of the profit they make from it. Don't miss this opportunity! Contact us to learn more. Take the first step towards your new trading career today