The PepsiCo and USSR Navy Rumor

Introduction

• Common rumor: PepsiCo once owned the 6th largest navy in the world.
• Variability in stories about the timeline: Post-WWII, 1960s, 1980s.
• True timeline: Transaction occurred in 1989.

Background

• PepsiCo wanted to sell drinks in the USSR.
• Problem: Soviet ruble was a closed currency (worthless outside USSR, couldn't be traded for dollars).

The Initial Deal

• 1970s deal with a Soviet vodka company.
  • Profits from global vodka sales reimbursed Pepsi for its sales in the USSR.

The Renegotiation

• PepsiCo began losing money.
• New deal with Soviet government: Decommissioned naval vessels as payment.
  • Plan: Sail ships to India and sell for scrap.
  • Reported acquisition: 17 submarines, a frigate, a destroyer, and a cruiser.

Reality Check

• Rumored navy size: Not in the top 30 globally.
• Problem: The transaction never actually took place.
  • All scrapped Soviet ships from this period are accounted for.
  • Real deal: USSR built freight ships for Pepsi, which it could sell or lease.

Conclusion

• Pepsi never owned a navy.
• Even if it did, it wouldn't have been large.
• Deal finalization: 1990, effective for 18 months until USSR collapse.
• Humorous note: "It's all fun and games until Coke gets an aircraft carrier."