Westenberg Pepsi, the Cold War, and the Soviet Submarine Deal
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Dec 6, 2024 Delve into the daring exploits of a Pepsi executive who seized Cold War tensions to enter the Soviet market. Discover the unconventional barter deals, including a trade involving vodka and retired submarines. This intriguing tale highlights the risks and strategies of navigating authoritarian marketplaces. It serves as a fascinating case study of how commerce intertwines with politics, offering timeless lessons for today’s business landscape. Explore the complexities of doing business in repressive regimes.
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Kendall's Cold War Photo Op
- Pepsi executive Donald Kendall used a Cold War photo op with Khrushchev and Nixon to launch his career.
- This moment led to Kendall becoming Pepsi's CEO and forging key political connections.
Vodka-for-Pepsi Soviet Deal
- Pepsi's deal to enter the USSR relied on barter: vodka for soda.
- They gained exclusive rights to distribute Stolichnia vodka in the US and built 16 bottling plants in the USSR.
Pepsi's Submarine Barter
- Pepsi accepted obsolete Soviet naval vessels as payment in 1989, creating the "sixth largest navy."
- The ships were quickly sold for scrap metal through Norwegian companies.