A US-founded canned food company seized by Russia is now seeking new customers in China, North Korea, and other countries after facing a sharp drop in domestic sales.
The company, Glavprodukt, was taken over by the Kremlin in October 2024, claiming it was vital for Russia's food security.
But documents reviewed by Reuters show the move has not delivered on that goal.
Founded by Los Angeles businessman Leonid Smirnov, Glavprodukt is Russia's largest canned food producer.
It makes products like beef stew and condensed milk. Since being seized, its local sales have crashed, leaving shelves full and warehouses crowded. Despite stable production levels, demand inside Russia has fallen fast.
"They claimed they took my company to secure food for Russia," Smirnov said in an interview. "But they are not living up to this purpose, this justification."
He is currently fighting in a Moscow court to reclaim the business, with the next hearing set for July 11.
According to internal strategy papers and people familiar with the matter, the company's new state-appointed managers are now looking abroad.
Exclusive: A US-owned canned food company seized by Russia to safeguard domestic food supplies is planning to boost dwindling sales with exports to China and North Korea https://t.co/CA08ALFZ69
— Reuters (@Reuters) July 10, 2025
Russia's Seized Canned Food Giant Targets New Markets
In June, they proposed boosting exports to North Korea, China, and parts of the Middle East.
According to AlarabiyaEnglish, China accounted for only about 1% of Glavprodukt's sales last year, but efforts are underway to grow that number. Staff have even tried to register the Glavprodukt trademark in China.
The documents also highlight a focus on new e-commerce efforts and plans to enter African and South Asian markets, where canned fish products may be in higher demand. However, early steps into global exports have faced delays.
One shipment to China, which included canned fish and milk, still hasn't arrived, underscoring the challenge.
This strategy shift comes as Glavprodukt faces monthly financial losses, according to filings. Last month, Russia's Ministry of Agriculture asked the company to explain its slumping sales. The Ministry has not yet commented.
The Kremlin has used similar tactics with other foreign-owned companies, like Danone and Carlsberg, often transferring assets to state-friendly buyers.
President Vladimir Putin recently said he wants U.S. firms to return to Russia, but Glavprodukt's situation tells a different story.
Meanwhile, US-Russia relations remain tense, with President Trump expressing frustration after a recent call with Putin.
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