Dec 06 2024 5 mins 1
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
