Day Lila

Food & Farming · Wednesday, 23 September 2026

01 Briefing what happened

Russia takes control of Nestle's six factories and Auchan's 229 shops, without buying them

Food & Farming 25 sources

A decree from Russia's president handed the Russian businesses of Nestle and Auchan to a state-picked manager. The owners keep them on paper and lose the right to run them.

6

Nestle factories in Russia, now run by a manager the state picked

they make coffee, pet food and baby formula, with about 7,000 staff [1][2]

229

Auchan supermarkets in Russia, handed to the same manager

Auchan kept trading after 2022 and had 24,236 staff there at the end of 2025 [1]

$50bn+

of private property seized by the Russian state, including foreign firms' assets

an estimate made in 2025 by NSP, a Moscow law firm [1]

The lead story — what happened

  • On Thursday 17 September, a decree from Russia's president, Vladimir Putin, put the Russian businesses of Nestle and Auchan under temporary administration. [2][5]
  • Nestle is a Swiss company, the maker of Nescafe coffee and KitKat chocolate. Auchan is one of France's largest supermarket chains. [2][4]
  • Temporary administration means the two companies still own their Russian businesses on paper. A manager picked by the state runs them instead. [1][3]
  • That manager is LEV Management, a Moscow company registered in 2024 with little public record. [1] The same decree covered FM Logistic, BATI Group and Lemana Pro, the DIY chain once called Leroy Merlin. [5]
  • Nestle has six factories in Russia making coffee, pet food and baby formula, and about 7,000 staff there. [1][2] Russia brings in about 1% of its sales worldwide. [1]
  • Auchan stayed in Russia after the invasion of Ukraine in 2022, when many Western firms left. It had 229 stores and 24,236 staff there at the end of 2025. [1]
  • Its Russian shops took 127 billion roubles, about $1.5 billion, in the first half of 2026. [1]
  • Russia's presidential spokesman, Dmitry Peskov, said both are European firms from unfriendly countries that are most actively involved in the fighting against Russia. [5] He said no decision beyond outside management had been made. [5]
  • Russia created this tool by decree in 2023. It was used on Danone, the French dairy company, and Carlsberg, the Danish brewer, and both businesses were later sold to new Russian owners. [1][5]
  • Nestle said on Friday it would take all necessary steps to protect its rights and keep its factories working for its staff. [2][4]
  • Western firms that left Russia in 2022 and 2023 declared more than $100 billion in losses. Some were forced to sell cheaply to buyers Russia's government approved. [4]
Both businesses now answer to one manager picked by Russia's state. Staff figures are the companies' own: Nestle's about 7,000, Auchan's at the end of 2025.

Who is involved

  • Nestle

    the Swiss company behind Nescafe and KitKat; it lost control of its six Russian factories

  • Auchan

    a French supermarket chain; its 229 Russian stores went to the same manager

  • LEV Management

    a Moscow company set up in 2024; the state chose it to run both businesses

  • Vladimir Putin

    Russia's president; he signed the decree on 17 September

  • Dmitry Peskov

    Russia's presidential spokesman; he tied the move to European help for Ukraine

How it unfolded

  1. 1990s Nestle starts working in Russia [1]
  2. 2002 Auchan opens in Russia [1]
  3. 2022 Russia invades Ukraine; Nestle stops advertising and new investment in Russia [1]
  4. 2023 a decree lets Russia put firms from unfriendly countries under a state manager [1]
  5. Thu 17 Sep the decree hands Nestle's and Auchan's Russian businesses to LEV Management [2][5]
  6. Fri 18 Sep Nestle says it will protect its rights [2]

Where this points

Watch whether state management is followed by a sale to a Russian buyer, which is what happened to Danone and Carlsberg after the same step. [5]

What is pushing on the whole day

The bar and the word are our reading of how hard each one is pushing today. The arrow is where it is heading. The evidence is in the stories below.

The war reaching food firms High

Russia's government took control of Nestle's factories and Auchan's shops by decree. [5] Attacks on Black Sea ports cut Russia's grain exports by about a third in July and August. [6] Ukraine's strikes on Russian refineries are pushing up the price of diesel worldwide. [7]

Fuel costs climbing High

The average price of diesel in the US passed $6.50 a gallon on Tuesday, a record. [7] In Dhaka, Bangladesh's capital, one woman sometimes waits until midnight for enough piped gas to cook dinner. [24] Sulfur for fertiliser went from $46 a ton in 2024 to over $1,000 in July. [25]

Shoppers stretching their money Building

Seven in ten Americans say their income has fallen behind prices, a US grocers' group found. [8] McCormick, the spice company, says shoppers are cooking more from leftovers. [10] In Chile, a basic monthly food basket cost 5% more in August than a year before. [15]

The rest of the day

18 more stories on this beat.

Each with its own sources. None of these is a link to the story above.

  1. 02

    Russia sends its grain north

    Russia is the world's biggest wheat exporter, and almost 90% of the grain it sent by sea used to leave through the Black Sea. [6] Attacks on ships and ports there cut its exports to 4.4 million tonnes in July and August, down about 31%. [6] So Ultramar, a fertiliser terminal at Ust-Luga on the Baltic, has been loading grain since August. [6] Murmansk, an Arctic port that never freezes, says it will start shipping grain in October. [6]

    The southern ports handle more than 60 million tonnes. Analysts put the Baltic's old grain capacity at 2 to 7 million; the top of that range is drawn.

    Why it matters — Russian Railways is giving grain trains to the north priority, with state subsidies. [6] Grain buyers in Egypt and Saudi Arabia are among those now being served from the Baltic. [6]

  2. 03

    Trump backs a US diesel export ban

    US President Donald Trump said on Tuesday he would support stopping diesel exports, as the average US price passed $6.50 a gallon, a record. [7] The US Treasury Secretary, Scott Bessent, said officials were checking whether a full or partial ban would work. [7] Republicans in Iowa and Alaska had asked for it before the 3 November midterm elections. [7] The US exports about 1.3 million barrels of diesel a day, nearly a quarter of what its refineries make. [7]

    • Diesel exported25%
    • Diesel kept in the US75%
    Roughly a quarter of the diesel made in US refineries is sold abroad. That is the share a ban would keep at home.

    Why it matters — A ban could give American drivers short-term relief. [7] It could squeeze supplies for Britain and the Netherlands, which have used American diesel to fill the gap left by sanctions on Russian fuel. [7]

  3. 04

    Sulfur shortage shuts two fertiliser plants

    Mosaic, a US maker of phosphate fertiliser, has idled two plants in Louisiana, affecting 300 families. [25] Fertiliser needs sulfur, and its price has jumped. [25] Sulfur cost $46 a ton in 2024 and more than $1,000 a tonne on the spot market in July. [25] Much of it is stuck behind the closed Strait of Hormuz, and Russia's exports are banned in many countries. [25]

    Why it matters — Mosaic expects farmers to use much less phosphate fertiliser because sulfur now costs so much. [25] Oxford Economics, a forecasting firm, expects world food prices to rise another 4.8% in 2027. [25]

  4. 05

    Cooking at midnight in Dhaka

    In Dhaka, Bangladesh's capital, Parvin Akter now sometimes waits until midnight for enough piped gas to cook dinner. [24] Bangladesh makes more than 40% of its electricity from imported liquefied gas, and Qatar once supplied 95% of it. [24] Shipments from the Gulf are disrupted. [24] Gas shipped to Asia now costs close to $30 per million British thermal units, a standard measure, against about $10 before the US-Israeli war with Iran. [24]

    Why it matters — Pakistan started a fuel subsidy on Wednesday 16 September, but people must register their vehicle and phone to get it. [24] A Karachi resident said he spent days trying. [24]

  5. 06

    US grocery prices held still in August

    Food bought in shops cost the same in August as in July, after falling 0.1% in July. [8] Over a year, grocery prices were up 2.2%. [8] Ricky Volpe, a farm economist at Cal Poly, expects prices to rise again because diesel, fertiliser and tariffs take months to reach the shelf. [8] Grocers say their profit margins averaged 2.3% since 2020, leaving little room to absorb costs. [8]

    Why it matters — Volpe says higher corn prices take time to become higher shop prices, so August's pause may not last. [8] New York City plans public grocery stores selling basics 30% cheaper from 2027, and nearby shopkeepers have sued. [8]

  6. 07

    Chile's cheap hot dog gets dearer

    The completo, Chile's hot dog topped with avocado, tomato and mayonnaise, used to cost 2,500 pesos, about $2.60. [15] Now it costs 3,500 to 4,000 pesos. [15] Chile's economy has shrunk for two quarters in a row, unemployment has reached 9.5% and prices rose 4.1% in a year. [15] A basic monthly food basket cost just under $100 in August, up 5%, against a minimum wage of about $580. [15]

    One student's prices for the same hot dog. It now costs 3,500 to 4,000 pesos; the higher price is drawn.

    Why it matters — Chile's central bank cut its growth forecast for 2026 to between 0.25% and 0.75%. [15] President Jose Antonio Kast has asked his ministers for a jobs emergency plan. [15]

  7. 08

    New Zealand's farms turn into pine forests

    New Zealand gives carbon credits to forests planted after 1989, and has approved nearly 9,000 square kilometres of carbon forest. [14] Forest investors can outbid sheep and beef farmers for land. [14] Since 2017 about 3,300 square kilometres of that farmland has been sold for trees, enough to feed nearly 9% of the country's sheep. [14] Grazing land prices rose 9.7%. [14]

    9 of 100

    of New Zealand's sheep could graze the farmland sold to forestry since 2017

    Each dot is one hundredth of the national flock. About nine hundredths' worth of grazing land has gone to trees.

    Why it matters — In Pongaroa, a farming village, the rugby club folded in 2022 and the daycare closed in 2023 as families left. [14] New Zealand's government tightened the rules for pine on good farmland late last year, and conversions have slowed. [14]

  8. 09

    McCormick says shoppers cook from leftovers

    Brendan Foley, head of McCormick, the US spice company, said this month that American shoppers are under pressure. [10] He said most of the US food industry is selling smaller amounts, as people use what is in the cupboard and cook from leftovers. [10] McCormick says that helps its own spices, sauces and hot sauce, which is now in 67.5% of US homes. [10]

    Why it matters — It is a company describing its own market, so it is a claim, not a count. [10] McCormick is also combining with Unilever's food business, adding stock cubes and mayonnaise. [10]

  9. 10

    Weight-loss drugs push snacks towards protein

    People taking weight-loss drugs such as Ozempic are buying less food and eating smaller portions, the New York Times reported. [12] One nurse in Michigan said his grocery bill fell by 10 to 15%. [12] Hershey, the chocolate maker, says its protein bars are growing despite the drugs. [11] It is adding vitamins and protein through a partner firm and cut 90 days from the time it takes to launch a product. [11]

    Why it matters — Hershey counts foods such as protein bars as one of its four areas for growth. [11] Its finance chief called that business small for now. [11]

  10. 11

    Restaurants put their sauces on shop shelves

    Momofuku, a US restaurant group, launched five cooking sauces in mid-September for people to use at home. [9] Buffalo Wild Wings, a chain of wing restaurants, put three of its flavours on Pringles crisps, made by Mars. [9] Research from Bank of America found restaurant prices are still rising, but more slowly than a year ago. [9]

    Why it matters — Restaurant prices have risen faster than grocery prices since before the pandemic. [9] Chains keep launching supermarket products even as more people eat out again. [9]

  11. 12

    South Korea recycles its food waste; New York tries

    South Korea charges households by the weight of their food scraps, using smart bins in 8.61 million homes. [13] Its food waste recycling rate rose from 2.6% in 1996 to nearly 97% in 2023. [13] New York City made food waste separation compulsory in October 2024 and has issued more than 63,000 violation notices. [13] It collected about 140,000 tonnes in 2025, roughly 9% of what households throw out. [13]

    Share of household food waste recycled or collected. New York's figure is what the city collected, against what households throw out.

    Why it matters — Scraps in a landfill give off methane, a gas that warms the planet over 80 times more than carbon dioxide in 20 years. [13] South Korea turns its scraps into power instead. [13]

  12. 13

    US farm grants lean towards cattle

    The US agriculture department announced on 18 September $26.5 million in grants for 194 farm projects. [23] The money helps farmers turn what they grow into their own products and sell them directly. [23] Of it, $11.6 million goes to 80 beef projects. [23] The agriculture secretary, Brooke Rollins, called it an investment in the country's cattle herd. [23]

    Why it matters — The department says the grants help farmers cut out the middleman and keep more of the money in rural towns. [23]

  13. 14

    Engineered crops gave steadier harvests

    A study in Nature Climate Change looked at four decades of US farm data. [18] It found that genetically engineered corn, soybeans and cotton raised average yields. [18] They also made yields swing less from one year to the next. [18] And they slowed the northward drift of where crops are grown as the climate warms. [18]

    Why it matters — We could read only the summary, not the full paper, so the size of each effect is not given here. [18]

  14. 15

    Two gene-editing firms join up on tomatoes

    Biographica, a British start-up that uses computer models to find which genes shape a crop trait, is working with Hudson River Biotechnology, a Dutch gene-editing firm. [17] Biographica picks the genes and designs the edits; Hudson River makes the edited plants. [17] They will start with tomatoes and aim at traits such as disease resistance. [17]

    Why it matters — Its co-founder says it can help breeders get around genes already covered by other companies' patents. [17]

  15. 16

    An EU study of misleading food claims

    INFOODMATION, a project paid for by the European Union, studied 322 possibly misleading food messages from 13 European countries. [16] It also read more than 540,000 posts by popular influencers. [16] It found three common tricks: badges that look official, paid adverts dressed as news, and scary or nostalgic words. [16] The most common problem was claims that were partly true, not outright lies. [16]

    Why it matters — The researchers found no widespread law-breaking, only firms working in unclear areas the law does not settle. [16]

  16. 17

    Americans buy more milk and yogurt online

    Online sales of dairy in the US have grown about 20% a year for four years, Circana, a market research firm, found. [22] Online shopping made up all of dairy's sales growth, meaning shop sales fell. [22] About 12.7% of the $19.7 billion of milk sold went through online orders. [22] Amazon said its shoppers buying fresh food rose 50% this year. [22]

    Why it matters — Fresh food used to be the thing people insisted on buying in person. [22] Ice cream is still mostly bought in shops because it can melt on the way. [22]

  17. 18

    A Chinese tea brand opens a Singapore base

    Walovi, a Chinese maker of herbal tea drinks, has opened its international headquarters in Singapore. [20][21] Its exports to Vietnam, Cambodia and Malaysia each doubled in the first half of 2026. [20] It launched an energy drink made with ginseng outside China for the first time. [20]

    Why it matters — It signed Baosteel Packaging to make its drinks in Vietnam, Malaysia and Cambodia. [20] Southeast Asia is now its fastest-growing market outside China. [20]

  18. 19

    Early farmers moved maize to higher ground

    Researchers studied soil and plant remains in the Maya lowlands of Belize, Guatemala and southern Mexico. [19] About 6,000 years ago, people grew crops at the edges of wetlands. [19] By about 3,500 years ago they were growing maize on higher, drier land away from the wetlands. [19] The researchers link the move to a dry period and a growing population. [19]

    Why it matters — It is an early record of farmers changing where they grow food after a dry spell. [19]

02 Lesson why it matters

Why buildings that cannot leave a country give its government a hold on their owner

Nestle's plants and Auchan's shops cannot be shipped home, so Russia's government could take them over without paying for them.

The twist

Nestle and Auchan stayed in Russia to keep their factories and shops. Because those buildings cannot leave, Russia's government could take control of them without paying.

The picture

Nestle's Russian factories, from building to losing control. Nestle still owns them on paper.

How it works

  1. A company builds factories or shops in another country
  2. The buildings cannot move if relations turn bad
  3. Leaving means selling cheaply, to a buyer that government approves
  4. So the company stays and keeps them running
  5. That country's government can then take control without paying

The same force, elsewhere today

Where this chain is also running, in today's other stories.

  • Trump backs a US diesel export ban

    The diesel sits in refineries inside the US, so the US government can order it kept at home, and buyers in Britain and the Netherlands get no say.

  • Russia sends its grain north

    Russian grain firms cannot take their harvest to another country's port, so it goes where Russian Railways and state subsidies send it.

  • New Zealand's farms turn into pine forests

    Land planted with pine stays pine for decades, so its owners live under whatever rules come next, and New Zealand's government tightened the rules for pine on good farmland.

Where you've seen this

A cafe in a rented shop

an owner who paid for a new kitchen can be charged more rent when the lease ends, because moving means losing the kitchen

An apple orchard

trees take years to fruit, so if one juice plant is the only buyer nearby, it can pay the farmer less

A mine

a mining company must dig where the metal is, so the country can raise its tax once the digging has started

The catch

The hold only works while the owner still wants the building back. A company that has already written off its factory cannot be pushed any further, and other companies watching may choose not to build there at all.

And the whole of it

About 7,000 people in Nestle's factories and 24,000 in Auchan's shops went to work this week under a manager the state picked. Anyone who has put money into a building somewhere, a cafe kitchen or a factory, has put it where somebody else makes the rules.

03 Truth what's really going on

What is really going on

Russia's government took control of Nestle's six Russian factories and Auchan's 229 Russian supermarkets by decree, without paying, and handed them to a Moscow company set up in 2024. [1][5] It has used the same step on Danone and Carlsberg, and both businesses were later sold to new Russian owners. [5]

Why it works on us — The word temporary makes a loss of control sound like a pause, while the owners' say over the business has already ended. [1]

Who gains

  • LEV Management — A company registered in 2024 now runs Nestle's and Auchan's Russian businesses under the decree. [1]
  • Baltic and Arctic port operators in Russia — Grain that used to leave from the Black Sea is being sent to them, with state rail subsidies behind it. [6]
  • Forest investors in New Zealand — Carbon credit income lets them outbid sheep and beef farmers, and grazing land prices rose 9.7%. [14]
  • McCormick — Shoppers cooking more at home and from leftovers buy more of its spices and sauces, its boss says. [10]
  • American drivers, if exports stop — A diesel export ban would keep about 1.3 million barrels a day inside the US, which could give drivers short-term relief. [7]

Who pays

  • Nestle and Auchan — They keep the businesses on paper but can no longer decide anything about them. [3]
  • Diesel buyers in Britain and the Netherlands — They have relied on American diesel to fill the gap left by sanctions on Russian fuel, and a US ban could squeeze their supplies. [7]
  • Families in Pongaroa, New Zealand — As farms turned to pine, the rugby club folded in 2022 and the daycare closed in 2023. [14]
  • Households in Chile — A basic monthly food basket costs just under $100, up 5%, against a minimum wage of about $580. [15]
  • Workers at Mosaic's Louisiana plants — Two plants were idled because sulfur for fertiliser got too dear, affecting 300 families. [25]

What nobody knows yet

Open questions from across today’s stories — ours included.

  • 01

    Whether Nestle's and Auchan's Russian businesses will be sold, and to whom.

    Russia's presidential spokesman said no decision beyond outside management has been made. [5] Reuters notes the step could lead to a forced sale at a discount, as with Danone and Carlsberg. [1]

  • 02

    Why these two firms were chosen now.

    Russia's spokesman tied it to European help for Ukraine. [5] Kommersant, a Russian newspaper, earlier reported that Nestle was targeted for not expanding in Russia or restarting exports from there. [1]

  • 03

    How big Auchan's Russian business is.

    Reuters gives 229 stores and 24,236 staff at the end of 2025. [1] FoodNavigator gives about 230 stores and around 30,000 staff. [3] We used the Reuters figures because they carry a date.

  • 04

    Whether the US will actually stop diesel exports.

    The US Treasury Secretary said officials were still checking whether a full or partial ban would work without hurting refineries. [7]

  • 05

    How much grain Russia can really ship from the Baltic and the Arctic.

    Ultramar's 37 million tonnes is a declared figure for a fertiliser terminal, and Murmansk has not said which berths it is converting. [6]

  • 06

    Whether August's flat US grocery prices will last.

    One farm economist expects diesel, fertiliser and corn costs to reach shop prices with a delay, but no figure yet shows it. [8]

  • 07

    Whether New Zealand's slowdown in farm-to-forest sales is real.

    The farm group's figure of about 160 square kilometres is preliminary and it says the total could rise. [14]

  • 08

    How large the benefit of engineered crops was.

    We could read only the summary of the Nature Climate Change paper, which gives no sizes for the effects. [18]

04 Hope carry this

South Korea now recycles nearly 97% of its household food waste, up from 2.6% in 1996. One plant in Daejeon turns those scraps into enough electricity for about 6,000 homes.

Also true today

  • Four decades of American farm records show that genetically engineered corn, soybeans and cotton gave bigger harvests that swung less from one year to the next.
  • US grocery prices did not rise at all from July to August, and they were 2.2% higher than a year earlier.
  • New York City collected about 140,000 tonnes of household food scraps in 2025 for compost and biogas, a big rise on earlier years.

Across the beats