FedEx and Pepsi Are Top Defense Contractors? 5 Corporate Brands Making a Killing on America’s Wars

Learn which "civilian" companies are making big bucks on today's wars.
 
Photo Credit: israelavila via flickr
Chances are, if you’ve ever sent a package overnight, bought a PC or a can of soda, you’ve paid your hard-earned money to a major Pentagon contractor. While large defense corporations that make fighter jets and armored vehicles garner the most attention, tens of thousands of “civilian” companies, from multi-national corporations hawking toothpaste and shampoo to big oil behemoths and even local restaurants

scattered across the United States, all supply the Pentagon with the necessities used to carry on day-to-day operations and wage America’s wars. And they’ve made a killing doing it since 9/11.  

In 2001, the massive arms dealers Lockheed Martin, Boeing and Northrop Grumman ranked one, two and five among Department of Defense contractors, raking in $14.7 billion, $13.3 billion and $5.2 billion, respectively, in contracts. Last year, Lockheed’s contract dollars were almost double their pre-9/11 level, clocking in at $28 billion, while Boeing’s had jumped to almost $19 billion and Northrop Grumman, still in the five spot, had more than doubled its 2001 take, with $12.8 billion in contracts. 
 
America’s recent wars have obviously been good to these companies. On September 10, 2001, Lockheed’s share price was $38.32. Today, it tops $70 per share. In 2001, the company’s net sales reached $24 billion. Last year, they were almost $46 billion. Likewise, Northrop Grumman’s net income has more than quadrupled in the last decade, according to the investment analysis website, Seeking Alpha. Still, these corporations are just a fraction of the story when it comes to the massive sums of money made by the military contractors since September 11, 2001. 
 
Chris Hellman of the National Priorities Project, writing recently at TomDispatch.com, noted that since the 9/11 attacks, the United States has spent about $8 trillion on national security. Even accounting for all the funds paid out for troop salaries, overseas base construction and the training and equipping indigenous allies in Iraq and Afghanistan, among many other costs, it’s clear that vast sums of Pentagon money are flowing somewhere other than to the top weapons-makers. Unknown to most U.S. taxpayers and even many Pentagon-watchers, some of the largest and most recognizable corporations in the world have also been getting rich on America’s wars. Below are five examples of “civilian” companies that have reaped major rewards from the Pentagon during its last decade at war: 
 
1. BP: The oil giant, perhaps most famous for dumping 206 million gallons of crude into the Gulf of Mexico last year, is also a perennial power when it comes to Pentagon contracts. Back in 2001, BP nabbed a cool $357 million in contracts from the Department of Defense. Last year, the number hit $1 billion and it’s no secret why. As defense-tech writer Noah Shachtman noted at Foreign Policy last year, the U.S. military burns “22 gallons of diesel [fuel] per soldier per day in Afghanistan, at a cost of more than $100,000 a person annually.” 
 
2. FedEx: The overnight shipping giant is a long-time defense-contracting powerhouse that has also seen an exponential increase in contract dollars since September 10, 2001, when its stock was trading at just under $40 per share. By the end of that year, FedEx had been awarded about $211 million in contracts from the Pentagon. In 2010, the company received $1.4 billion from the Department of Defense and this year, with its stock closing in on $80 per share, has already passed the $1 billion mark, again. This includes a $182 million deal, inked in August, to pack and ship fresh fruit and vegetables to U.S. military bases overseas and a joint agreement, which also includes United Parcel Service (UPS) and Polar Air Cargo, which could last up to five years and potentially net the companies a combined $853 million.
 
3. Dell: If you’re in the military and you want to pilot a drone, transfer supplies or write a memo, you need a computer. That’s just what Dell provides. The desktop- and laptop-maker has been plying the Pentagon with computers for many years and, just like Lockheed, Boeing and Northrop Grumman, has done especially well by the Department of Defense since 2001. That year, Dell was awarded $65 million in Pentagon contracts. By 2009, that number had jumped to $731 million and, over the course of the decade, has added up to a total of $4.3 billion in contracts for the PC manufacturer.  
 
4. Kraft – From A-1 steak sauce, their signature mayonnaise and Oreo cookies to Oscar Meyer hot dogs, Planters peanuts and Wheat Thins crackers, this company ranks as one of the largest and best known food concerns in the world. Not surprisingly, it also does a brisk business with the Pentagon which has grown ever larger during the last decade. Back in 2001, Kraft inked $148 million in deals with the Department of Defense, by 2010, its yearly take had risen to $373 million.
 
5. Pepsi – Once upon a time it was the “choice of a new generation.” These days, it’s the choice of the Pentagon. In 2010, PepsiCo washed down $217 million in Defense Department contract dollars, compared to the mere $61 million in deals it inked back in 2001. Earlier this year, the company continued the trend by signing a multi-million dollar deal to provide the Army, Navy, Air Force and Marine Corps with “bag-in-box beverages.” (That very same day, Coca-Cola also received a slightly larger contract to provide drinks for the military.)
 
Other big-name firms that are regularly awarded large, lucrative deals from the Defense Department include tire titans Goodrich and Goodyear, oil giants Shell and Exxon Mobil, big food suppliers like Nestle, General Mills, Tyson, ConAgra and Campbell's Soup, and tech and telecom stalwarts including AT&T, Oracle, Sony and Verizon.
 
A decade of waging wars abroad, from Iraq and Afghanistan to Pakistan and Libya to Yemen and Somalia hasn’t been kind to average Americans. As the United States poured nearly $8 trillion into national security spending, and the national debt ballooned from $6 trillion to $14.3 trillion, the official unemployment rate has more than doubled -- from 4.5% to 9.1%. Meanwhile the number of children living in poverty in the U.S. has jumped nearly 20% since 2000, according to the National Center for Children in Poverty. And for older Americans, the risk of hunger has spiked almost 80% since 2001, according to a recent report by AARP. But from car companies to candy makers and even the biggest brands in organic food, so many of the world’s favorite companies have, over these years, cashed in on America’s wars.   
 
In his famous 1961 farewell address, President Dwight Eisenhower warned of the "acquisition of unwarranted influence" by what he called the "military-industrial complex.” Today, however, the "large arms industry" that Eisenhower warned about is only part of the equation. Civilian firms such as FedEx and PepsiCo form the backbone of what more accurately can be described as a military-corporate complex of “civilian” businesses that enable the Pentagon to function, to make war and to carry out foreign occupations.

Views: 55

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Comment by Sweettina2 on September 10, 2011 at 10:37pm
Lot's of money changing hands for sure!
Comment by youhavetoforgiveme on September 9, 2011 at 4:51am
I wonder how many Congressmen got laid for those contracts to get signed......

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted blog posts
2 hours ago
Doc Vega commented on Doc Vega's blog post Marjory Taylor Green Proposes Bill Abolishing Geoengineering or Weather Modification
"cheeki kea Marjory is in a daily battle with Democrats on the hill constantly coming up with more…"
3 hours ago
Doc Vega posted blog posts
Wednesday
Mr. Sizzle favorited Less Prone's video
Wednesday
tjdavis posted a photo
Tuesday
Doc Vega posted a blog post

The Saga of Joe Adams May Have Solved What's Behind the Numerous Disappearances Going on in our National Forests

     The year is 2023 in September. A nature’s photographer and experienced survivalist, Joe Adams…See More
Monday
Sandy posted a video

Aron Siri's opening statement, Senate Hearing on Covid Vaccines, May 25

Opening statement Aaron Siri, Managing Partner, Siri & Glimstad, L.L.P.Senate Homeland Security and Governmental Affairs, Permanent Subcommittee on Investiga...
Monday
cheeki kea replied to cheeki kea's discussion Tartaria
"A smidgeon of facts have come to light. In English a misspelling suddenly occurred where an extra R…"
Monday
Doc Vega posted a blog post

The Cancel Culture Vulture

  Better to shut them down than hear their point of viewCancel culture coming after youHelping to…See More
Jul 12
Doc Vega posted a photo
Jul 11
Doc Vega posted a blog post

The Fingerprint

The Fingerprint On a dance with the unpredictability of the signals you sendA solemn pact with my…See More
Jul 11
Sandy posted a video
Jul 11
tjdavis posted a video
Jul 9
Burbia replied to Burbia's discussion Trump Receives Marching Orders
Jul 9
Less Prone favorited Burbia's video
Jul 9
Less Prone replied to Burbia's discussion Trump Receives Marching Orders
"Bullets can be effective in reinforcing ownership."
Jul 9
Burbia posted a discussion

Trump Receives Marching Orders

Netanyahu has made 3 visits to the White house since Trump's second term as President of the United…See More
Jul 9
Burbia commented on Burbia's video
Thumbnail

Ben Shapiro Just LOST HIS MIND — There's No Coming Back From This

"Omg. The Ben Shapiro voice that Luke is imitating here couldn't be any more comedic to…"
Jul 8
Burbia posted a video

Ben Shapiro Just LOST HIS MIND — There's No Coming Back From This

Get the magnesium your body needs - https://wearechange.shop/product/magnesium-glycinate/Ben Shapiro Just LOST HIS MIND — There's No Coming Back From ThisHig...
Jul 8
cheeki kea posted photos
Jul 8

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted