During the Cold War, soft drink company PepsiCo briefly became one of the largest naval powers in the world.
Here’s how.
In the 1970s and 1980s, the Soviet Union wanted to import Pepsi. But due to currency restrictions, the ruble wasn’t convertible on global markets. So traditional payment wasn’t possible.
Instead, the Soviets paid Pepsi in vodka distribution rights within the United States.
Later, in 1989, a new agreement was reached.
This time, the Soviet Union offered:
- 17 submarines
- A cruiser
- A frigate
- A destroyer
These vessels were transferred to Pepsi as part of a trade deal and then sold for scrap.
For a brief moment — on paper — Pepsi controlled a fleet that technically made it one of the largest naval forces in the world.
Of course, the ships were never used militarily by the company. They were dismantled.
But the symbolism is striking.
A consumer beverage company temporarily held more naval assets than many sovereign nations.
This bizarre episode highlights the economic complexity of the Cold War, where barter deals replaced conventional finance and corporations became unexpected geopolitical actors.
Global politics can produce some very strange arrangements.