What is unknown history that Pepsi Cola cut into the Soviet market as "the first capitalist product"?

In the Soviet Union that was taking Communism, it became "the first capitalist product", surprisinglyPepsi Colawas. Pepsi who sold a cola in the Soviet Union receives vodka instead of the ruble as a consideration and exports it to America. He seems to have made a great profit in both the USSR and the US.

When the Soviet Union Paid Pepsi in Warships - Gastro Obscura
https://www.atlasobscura.com/articles/soviet-union-pepsi-ships

An American newspaper in 1990 reported that Pepsi is conducting huge transactions of 3 billion dollars (about 450 billion yen at that rate) with the Soviet Union. "The Soviet Union has offered vodka as a consideration for Pepsi-Cola concentrate for some time, but this time it was delivering 10 warships" that the Soviet Union was content that crazy. Although it was the end of the Cold War, it seems that the communist country's Soviet Union purchased a large amount of American products, the biggest competitor among capitalist countries, in a matter of no surprise.

The relationship between Pepsi and the Soviet Union dates back to 1959. The Soviet Union held an exhibition in New York, USA, and in return, the US held an exhibition on American products at Sokolniki Park in Moscow. Disney, IBM etc participated in this American exhibition and booth was set up, and it contained Pepsi among them.

Richard NixonVice President (then) is the Supreme Leader of the Soviet UnionNikita KhrushchevYou can see the situation when you were hospitable with the following pictures.


Last night, Donald Kendall, the top international department of Pepsi, of Vice President Nixon offered to serve the first secretary Khrushchev. And he told Vice President Nixon that "Khrushchev must have Pepsi." As advocated, Vice President Nixon advised Pepsi Cola 's tasting in the first secretary Khrushchev, Khrushchev 1st secretary became one of the first Soviet people to taste Coke.

Khrushchev, the first secretary to drink Pepsi Cola. Kendall is pouring Pepsi Cola into the cup with a smile on the front. The effect of the Soviet supreme leader who gave Pepsi's cup was tremendous and Pepsi greatly increased its presence in the Soviet Union. In addition, six years after this picture was taken, Kendall has assumed office as CEO of Pepsi.


At that time, Pepsi had a big ambition to expand the brand globally, and Kendall saw that there is a business opportunity in the Soviet Union, gaining an exclusive right to sell colas in the Soviet Union in 1972, until rival until 1985 I succeeded in completely closing out a Coca-Cola from the Soviet market. The New York Times says that this incident was said that "Pepsi Cola is the first capitalist product in the Soviet Union."

Pepsi became a pioneer in the Soviet market, but the big problem is that the ruble, the money of the Soviet Union, had no international value. The exchange price was greatly influenced by the decision of Kremlin, and the Soviet Union prohibited the ruble out of the country by law. Therefore, Pepsi designates vodka to compensate for selling cola stock solution. He seems to have received the vodka of Stolichnaya which was also sold in the United States. Pepsi-Cola thus exported to the Soviet Union grew until the late 1980's, as much as 1 billion pounds (about 4.5 million tons) annually was consumed by the Soviet Union. Furthermore, Stolichnaya of vodka received as consideration also seems to be popular in the United States.

However, when the Soviet-Afghan war broke out, the boycott movement of the Soviet Union occurred in the United States, and Pepsi became unable to sell vodka. In 1989, Pepsi re-contracted with the Soviet Union, and as a consideration for Cola sales, 17 submarines, I decided to accept three warships (frigates, cruisers, destroyers). In addition, we purchased Soviet oil tankers and started leasing and selling them to Norwegian companies. In this way, Pepsi successfully expanded the number of Soviet Pepsi factories more than twice. Kendall seems to have skipped a jokes saying "We are disarming the Soviet Union more quickly than the US government."


It was Pepsi, which was at its best, including launching a new brand, Pizza Hut, with a massive deal of 3 billion dollars (about 450 billion yen at that time) with the USSR, but when the Soviet Union collapsed in 1991, Spring will tell the end. Pepsi, who had been doing business with one country before, suddenly was forced to deal with 15 countries. Planning to replace Pepsi-Cola's glass bottle The inexpensive and light plastic jar manufacturing plant is located in Belarus, imported for Pizza Hut Mozzarella cheese is in Lithuania, warships are anchored in Ukraine, Kendall, who was doing it, said he was mourning that "the Soviet Union" was "closed". Furthermore, for Pepsi, Coca-Cola actively began to enter the former Soviet Union market, he faced a situation of crying bees.

After all, Coca-Cola became the most popular cola in Russia in just a few years, the Pepsi's finish told the end. For Pepsi, Russia is still the second largest important market outside the United States, but he has already lost its advantage as a pioneer. It is said that advertisement signboard which was a symbolic existence of Pepsi in Russia which was listed before Pushkin Square was removed in 2013.