EJ Smyth & Company - June 2020

HISTORY OF THE PEPSI FLEET HOW PEPSI BECAME THE WORLD’S SIXTH LARGEST NAVY

Coke or Pepsi?

PepsiCo Stolichnaya vodka in exchange for the cola. This deal was great for both parties until the Soviet Union invaded Afghanistan and the United States boycotted Soviet products, including vodka. If the USSR wanted to keep its supply of sweet cola, then they would need to

This is one of the oldest brand wars in the world, but these days, most of us are willing to settle for whichever soda is available. But if you

happened to be in the Soviet Union during the 1980s, Pepsi was the soda of choice. The Soviets loved Pepsi so much that they were willing to make PepsiCo a naval superpower in order to get more of that refreshing, sugary beverage. In 1972, PepsiCo secured a deal to sell Pepsi syrup to the USSR, where it would be bottled locally. Not only did this deal make Pepsi the first Western product to be sold in the USSR, but it also locked The Coca-Cola Company out of the market, giving PepsiCo a monopoly. But before the deal could be finalized, the Soviets needed to figure out how to pay for the cola syrup.

give PepsiCo something else. That’s when the Soviets offered up part of their naval fleet.

In exchange for $3 billion worth of Pepsi, the Soviet Union traded 17 submarines, a cruiser, a frigate, and a destroyer. This trade made PepsiCo the sixth most

powerful naval military in the world. The deal was reported in a 1989 New York Times article, which included a quote from the CEO of PepsiCo to the United States’ national security advisor: “We’re disarming the Soviet Union faster than you are.” PepsiCo quickly sold the fleet to a Swedish company for scrap recycling, but for a few days, Pepsi had the potential to become the ultimate victor in the cola wars.

Rubles, the Soviet currency, were worthless internationally. To get around this, the Soviets traded

TIMES THE OLYMPICSWERE CANCELED And the Postponement of the 2020 Tokyo Games

In late March, amid the global spread of COVID-19, the International Olympic Committee announced the postponement of the 2020 Olympic Games. They were slated to take place in Tokyo, Japan, this summer, but they will now happen in the summer of 2021. While this is an unprecedented decision, it’s not the first time that major global events have affected the Olympic Games or which countries participated. Since the inception of the modern Olympic Games in 1896, they have been outright canceled three times — 1916, 1940, and 1944. The first cancellation of the Olympic Games happened duringWorldWar I. The German Empire was supposed to host the games in Berlin, but by the time 1916 rolled around, Europe was deep in the trenches of WWI. Many nations had sent their athletes to fight in the war, so the games were canceled.

WorldWar II caused the next two cancellations. The 1940 Olympics were initially scheduled to be held in Tokyo. It would have been the first time the games were hosted by a non-Western country, but Japan forfeited the right to host when they invaded China in 1937. The games were then rebooked for Helsinki, Finland, but after Nazi Germany invaded Poland in 1939 and startedWWII, those games were scrapped as well. Since the fighting hadn’t ceased by the time the games were supposed to happen in Cortina d’Ampezzo, Italy, in 1944, the Olympics were canceled again. Though the Olympics have happened on schedule since the end of WWII, the United States has not always participated. In 1980, when the U.S. boycotted the Olympics that were held in Moscow, Russia, in protest of the Soviet Union’s invasion of Afghanistan, 64 other nations followed suit. However, those games still went on as planned and 80 countries participated. The fact that major global conflicts are the only other events that have been catastrophic enough to affect the Olympics might be distressing and elevate anxiety about our current global health crisis. However, it’s important to keep in mind that the Olympics have only been postponed this time, not canceled. We’ll still get to cheer on our favorite Olympians next year.

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