In 1989, during the final years of the Cold War, PepsiCo briefly became one of the world’s largest naval powers—on paper at least. The story sounds unbelievable, but reportedly it's true: for a short period, Pepsi had more submarines than the Indian Navy.
Pepsi’s rising popularity in the USSR
It all began with Pepsi’s growing popularity in the Soviet Union. The Soviets loved the soda, but due to a shortage of hard currency, they couldn’t pay in US dollars. In a surprising twist, the USSR proposed a barter deal. In exchange for billions of bottles of Pepsi, they offered PepsiCo a fleet of old naval ships: 17 submarines, a cruiser, a frigate, and a destroyer.
A strange but strategic deal
Pepsi agreed to the deal. This gave them control—briefly—over more submarines than India, which at the time operated 12 submarines, including the Soviet-built Foxtrot-class and newer Sindhughosh-class (Kilo-class) vessels. According to Jane’s Fighting Ships 1989–90, this fleet would’ve placed Pepsi tied for 7th in the world by submarine count.
The ships were for scrap, not war
But before imagining Pepsi logos sailing on warships, here’s the reality. The ships were outdated and unseaworthy. They weren’t acquired for combat, but for scrap. PepsiCo immediately sold them to a Norwegian shipyard to be dismantled. The company acted as a clever middleman in a Cold War-era barter deal, not a naval commander.
A business deal, not a Soviet embarrassment
This wasn't a humiliation for the Soviet Union either. It was a practical solution for both parties. Pepsi gained long-term business access to a massive market, and the USSR got its favorite soda. PepsiCo’s then-CEO even joked, “We’re disarming the Soviet Union faster than the U.S. is.”
