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  #1  
Old 12-18-2007, 11:14 PM
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Default I'll trade you my Pepsi for your vodka and submarines

From the Mod 2 readings, "Financial Economics With Applications to Investments, Insurance and Pensions" editor Panjer.
Quote:
...in 1991, Pepsico bartered Pepsi Cola for vodka and obsolete Russian submarines.
seriously?
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Old 12-18-2007, 11:15 PM
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huh...well, here's a little more explanation http://www.witiger.com/international...untertrade.htm
Quote:
Pepsi & Vodka
The countertrade arrangement where the rights to sell Russian vodka in the US in exchange for Pepsi (to be sold in Russia) was a huge story years ago John G. Swanhaus, Jr., vice president, Pepsi Cola Company
As president of PepsiCo Wines & Spirits International, a major part of his responsibility was PepsiCo's supply to the U.S. market of Stolichnaya Russian Vodka as part of a countertrade agreement to sell Pepsi products in the Soviet Union.
Pepsi & Vodka -how did it work,
Pepsi-Cola delivers syrup that is paid for with Stolichnaya Vodka. Pepsi has the marketing rights of all Stolichnaya Vodka in the U.S.
Recently Pepsi has made another innovative step by taking 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. In turn, this rag tag fleet of 20 naval vessels will be sold for scrap steel, thereby paying for Pepsi products being moved to the Soviet Union.
explained at http://www.barternews.com/approach_marketing.htm
That's wicked cool.

Sorry to have taken up your time. I just had to post that.
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Old 12-18-2007, 11:16 PM
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http://www.everything2.com/index.pl?node_id=1245019
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Essentially, countertrade is barter writ large.
Companies that do business with other companies in countries that are cash poor or have restrictions on capital flows sometimes get paid by barter. Pepsi might export 1 million cases of Mountain Dew in exchange for 1 million cases of Stolichnaya Vodka, a visit to a strip club, and a player to be named later...well maybe not all that other stuff, but at least the vodka. Frighteningly enough, recently Pepsi accepted 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. Pepsi plans to either sell this flotilla for scrap steel or invade Atlanta, Georgia in order to finish off Coca Cola once and for all.
A very popular indirect strategy for market entry, countertrade may account for up to 20-30% of world trade. In countries in which currency repatriation is difficult or impossible, countertrade may be the only way to profitably enter the market. Also, it can be used to compensate or give incentives to companies investing in a new market as well. Countertrade, despite difficulties involved in setting prices, inconsistencies in products, and the difficulty of converting to traditional currency trading, is expected to continue to grow, especially in developing countries.
:ctm:
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Last edited by 1695814; 06-11-2015 at 05:45 PM..
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Old 12-18-2007, 11:19 PM
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Quote:
Originally Posted by 1695814 View Post
Recently Pepsi has made another innovative step by taking 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. In turn, this rag tag fleet of 20 naval vessels will be sold for scrap steel
Scrapping their destroyers in the middle of the Cola Wars? I think Pepsi really blew this one.
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Old 12-19-2007, 07:33 AM
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I think this may be more commonplace in other parts of the world. I've a friend that has an electronics firm that sells worldwide. He's had some Mexicans offer to pay him in 'luxury automobiles'.
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Old 12-19-2007, 09:20 AM
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Quote:
invade Atlanta, Georgia in order to finish off Coca Cola once and for all.
First they lose Vick, next they will lose their prized export..... What a great plan by pepsi...
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Old 06-03-2015, 05:51 PM
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http://money.cnn.com/2015/06/03/inve...ing/index.html

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Maduro's government now barters in its trade deals. Uruguay pays Venezuela in beef for some of the Venezuelan oil it buys. In February, the prime minister of Trinidad and Tobago offered to exchange toilet paper for Venezuelan oil.
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Old 06-03-2015, 05:59 PM
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reminds me of Civilization (video game) when the computer defends my tanks with spearmen. Or when they show off their knowledge of pottery and try to trade me for my knowledge of gunpowder.
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Old 06-04-2015, 09:01 AM
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Originally Posted by Abelian Grape View Post
reminds me of Civilization (video game) when the computer defends my tanks with spearmen. Or when they show off their knowledge of pottery and try to trade me for my knowledge of gunpowder.
I liked to put off developing some basic technology for as long as possible to see what ridiculous trades the AI would offer.

"We have heard you have discovered the secrets of Nuclear Power. Would you exchange them for our knowledge of the Wheel?"
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Old 06-04-2015, 09:51 AM
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And here was the 1990 NYT article on the nascent deal

http://www.nytimes.com/1990/04/09/bu...h-soviets.html

Quote:
In the largest deal ever between an American corporation and the Soviet Union, Pepsico expects to sign an agreement today to barter Pepsi-Cola for ships and vodka. The accord is valued at more than $3 billion.

The expected deal will greatly expand Pepsi-Cola's availability in the Soviet Union. And for the first time, Pepsico will take out its profits not just in Stolichnaya vodka, but in oceangoing freighters and tankers as well.

Since 1974, Pepsico has shipped its soft-drink syrup to the Soviet Union, made it into cola and sold the bottled product, taking out its profits in Stolichnaya, which is sold through a third party in the United States. Under the new deal, the Soviet Union will trade at least 10 tankers and freighters, ranging in size from 28,600 tons to 65,000 tons, with a total value of more than $300 million.

So they had been selling Pepsi in the USSR since I was born in exchange for vodka, but I guess by 1990, the vodka wasn't enough.

back to the article:

Quote:
President Mikhail S. Gorbachev of the Soviet Union has said that ending shortages and poor distribution of consumer goods poses a critical test for his leadership. The Pepsico deal is being closely watched as an indicator of whether Western companies can prosper in the Soviet market, which has 287 million consumers who have had little to buy.

....
.Pepsico, which is based in Purchase, N.Y., had sales in 1989 of more than $15 billion, making it one of the largest consumer-product companies in the world. Its brand names include the Kentucky Fried Chicken and Pizza Hut restaurants and Doritos tortilla chips.

''This deal is going to make the Soviet Union a very big business for us,'' said John Swanhaus, president of Pepsico's Wines and Spirits subsidiary. Pepsi consumption in the Soviet Union is small - currently about 40 million cases, or about the annual consumption of the Orlando, Fla., metropolitan area, with a population of about one million people. (That does not include nearby Disney World, where, in any case, the Coca-Cola Company has an exclusive concession.) Pepsi sells in the Soviet Union for the equivalent of 75 cents for an 11-ounce bottle.

......
Boom in Imported Brands

Vodka sales in the United States have been flat, but imported brands have boomed. Stolichnaya is the second-largest foreign brand - after Sweden's Absolut - with more than one million cases sold last year. Stolichnaya's sales have fluctutated with swings in Soviet-American relations. Sales plummeted, for example, after the Soviet invasion of Afghanistan in December 1979.

Pepsico will use foreign exchange credits from the sale and leasing of the Soviet ships to provide some financing for two Pizza Hut restaurants scheduled to open in Moscow this year. Fast-food restaurants are expensive to establish in the Soviet Union because of the underdeveloped Soviet food industry.

The new Pepsico contract is scheduled to be signed in Moscow today by senior officials of the Soviet Commission of Agriculture and Procurement; Sudoexport, a shipbuilding agency; Sojuzplodoimport, which has authority over soft drinks and vodka, and Mr. Kendall.

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