PEPSI BRIEFLY CREATED ITS OWN MILITARY LOVE AT FIRST SIP
W E
HOME
In Hawaiian, puuwai piha means to have
Did you know Pepsi had the sixth-largest military for a brief period? One of the biggest soda companies acquired several submarines and other military equipment because one country’s leader loved the cool and refreshing taste of the beverage. But how did this happen? Let’s start from the beginning. In 1959, President Richard Nixon and Soviet Leader Nikita Khrushchev attended the American National Exhibit in Moscow, Russia. As the two conversed, they began debating the benefits of capitalism versus communism. This conversation is now known as the infamous Kitchen Debate. Some reports cite that as the conversation was escalating, the head of Pepsi’s international division, Donald Kendall, offered Khrushchev a cup of Pepsi. It was love at first sip for Khrushchev, and he encouraged his comrades to taste the delicious beverage.
a full heart. As
we mentioned in our cover story,
we are so grateful for the opportunity to work with our favorite nonprofit organization, HomeAid Hawaii, to create homes and opportunities for many individuals. We are excited to share that they have an exciting new project currently in the works: Pu`uhonua O Wai`anae Mauka.
Up until recently, many houseless individuals resided on Hawaii state land at Waianae Small Boat Harbor in tents and shelters made out of sheets and boxes. Roughly 250 of these individuals now have a proper roof over their heads and a place to call home! Pu`uhonua O Wai`anae is a village in upper Waianae Valley that HomeAid Hawaii is currently working on to
When Kendall became Pepsi’s CEO in 1963, his primary focus was to bring the soda to the Soviet Union. But while Khrushchev loved the drink, he had to create a game plan on how he would purchase the beverage and share it with the rest of Russia. At the time, Russian currency wasn’t widely accepted in the Western world, so it didn’t have much value to Americans. But in 1972, Khrushchev came up with a plan: In exchange for Pepsi products, Khrushchev gave the corporation vodka to resell. But after a decade and a half, the Soviet leader had to begin trading something of more value in exchange for the beverage. Pepsi had a surplus of alcohol but no cash or revenue. So, Khrushchev exchanged 17 submarines, a frigate, a cruiser, and a destroyer in 1989 for about $3 billion worth of Pepsi. With all of the military equipment, Pepsi became the sixth-largest military in the world. But Pepsi’s military didn’t last long. They began breaking down the equipment and selling it as scrap metal. Today, Pepsi is all over Russia, but it’s not as popular as it was. Coca- Cola made its way to the country during the
O‘AHU HOME SALES
Mortgage Rates Double by Year-End
O’ahu’s real estate market started the year strong, however the steep rise in interest rates and fluctuation in inventory are shifting the market dynamic. While buyers are trying to figure out how to deal with higher financing costs, they now have more options to choose from and the competition isn’t as fierce. December sales of single-family homes plummeted 46.6%, while condo sales decreased 39.3% year-over-year. The median sales price for single- family homes dipped slightly to $1,049,500, while the median condo price rose to $502,500.
2022 Year-End Stats* The 2022 O‘ahu real estate market was marked by transition. The year began similar to 2021 with intense competition among buyers and mortgage rates still hovering near historic lows. It ended with strong headwinds as the average 30-year interest rate rose from 3.11% to 6.42% by year-end. The year ended with 3,474 single-family homes sold, a 23.2% year-over-year decline, while condo sales also fell by 11.8% with 6,353 sold.
SINGLE-FAMILY MARKET
Moscow Olympic Games in 1980 and took the country by storm.
While Pepsi’s military power was short-lived, the history of Pepsi and Russia’s relationship is fascinating. What do you think of this story? Do you think your favorite sugary beverage is worth trading military equipment for?
Key highlights included: • In the second quarter of 2022, 63% of single-family homes and 44% of condos closed above the original asking price. • In May, the single-family home market set a record median price of $1,153,500; in June, the condo market hit a record median of $534,000.
2
THEMITCHELLGROUPHAWAII.COM
Made with FlippingBook Ebook Creator