Navigating Business in the Cold War: The Pepsi-Soviet Saga

Pepsi's Misadventures in the USSR: How Not to Navigate Authoritarian Markets

In this episode, I explore how a savvy Pepsi executive in the late 1950s leveraged Cold War tensions to open the Soviet market to American consumers. This daring (and doomed) endeavor included groundbreaking deals structured around barter, including the famous yet often misunderstood submarine trade. Kendall's story is a case study ikn the complex and often perilous game between commerce and politics. It reveals some timely lessons on doing business with authoritarian regimes and the inherent risks of market and political reforms.

00:00 The Cold War Pepsi Challenge

00:42 Kendall's Rise and Nixon's Favor

01:02 Breaking into the Soviet Market

01:21 The Vodka for Pepsi Trade

01:57 The Submarine Deal

02:55 The Collapse of the USSR

03:56 Lessons from Authoritarian Markets

04:49 Modern Parallels and Final Thoughts