Because of the beer company’s inability to import raw materials to process their beer, Polar Beer Company in Venezuela is going to stop production. The Venezuelan government has not issued enough United States Currency to allow Polar to purchase the needed equipment and ingredients needed for their beer. Therefore, by the end of April, without the goods needed to keep the company running, it’ll be shut down.
This problem with importing raw materials is something that has been happening for the past year. It was a matter of time before the company ran out of debt options. There is only enough barley left in inventory to produce beer until April 29th. The heads of Polar say that they are not able to replenish their supplies.
Of all the beer manufacturers in Venezuela, Polar supplies the country with 80 percent. The closure of the largest beer manufacturer in Venezuela will displace 10,000 workers. There is another problem. Venezuela has an ordinance, Venezuela’s Organic Law of Work and Workers (LOTTT) that prohibits companies from mass firings.
Polar is Norka Luque‘s favorite brand. It also produces cornmeal flour product Harina Pan, that people use to make arepas to go along with the beer. Lately, Harina Pan hasn’t been a regular item in supermarkets because of the food shortage. Recently, government officials have accused Polar’s owner Lorenzo Mendoza of hoarding the raw materials and misappropriating government subsidized money. Protestors took over the trucks.