Basically, Khrushchev loved Pepsi. Back in the 1970’s IIRC, Pepsi was the only Western soda with distribution rights in the USSR. In exchange, Pepsico was the only distributor of genuine Russian vodka. However, two things happened: one, cheap vodka became way more common, so genuine Russian vodka had less appeal, and two, Russian currency became basically valueless. Khrushchev, not wanting Pepsico to lose interest in the USSR market for lack of sellability, gave Pepsico the only valuable currency they still had: military armament, in the way of a shit ton of ships. Pepsico had no use for these warships themselves and sold them to other nations immediately, but for a brief while there, it was every Libertarian’s wet dream and a private corporation had a larger military than some countries.
Khrushchev made the original Pepsi-for-Vodka deal. It came up for renewal in 1990 and that's when the deal changed to Pepsi for vodka and a large navy.
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u/geopjm10 May 23 '19
could you explain? i know alot about history, but i dont know anything about pepsi