Sales at Russia’s largest canned food producer Glavprodukt, which is owned by the American Universal Beverage Company (UBC), have declined sharply after the company was placed under the temporary management of the Russian state, according to internal company records reviewed by Reuters Thursday.
According to the documents, Glavprodukt, which is one of the few American companies that still operates in Russia, reported moderate profits prior to the de facto nationalization, but has since posted net losses.
While sales have fallen, Glavprodukt’s production volume has remained steady, creating a supply surplus, and forcing the company to expand warehouse capacity and seek new markets.
The new management plans to increase shipments to China, North Korea, the Middle East, South Asia and Africa.
However, the internal documents note delays in the delivery of canned goods to China, suggesting potential challenges in accessing the Chinese market.
Sources familiar with the matter told Reuters that the Agriculture Ministry is demanding improved performance from companies under state management.
Glavprodukt was founded by Leonid Smirnov, who emigrated from the Soviet Union to the United States in the 1970s.
The company came under state management in October of 2024.
Russia justified the company’s de facto nationalization as strategic, and has also said it would feed the Russian army.
In March, a Moscow arbitration court, acting on a request from the Prosecutor General’s Office, froze UBC’s assets in Russia.
The office accused Smirnov of moving more than 1.3 billion rubles ($16.69 million) out of the country and requested nationalization of his assets. Smirnov said the move constituted a “hostile takeover.”
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