Many companies operating in Venezuela have recently shut down, suspended or scaled back their operations in the country as economic conditions have deteriorated significantly as reported by SlideShare. Coca-Cola FEMSA is the latest business to be added to an already long list. The Mexican beverage multinational has announced that they have made the decision to halt all production in Venezuela due to a shortage of sugar.
Coca-Cola FEMSA is the biggest Coke bottler in the world and has operations throughout Latin America. The suspension was caused by sugar supplies dropping below levels needed to sustain production. The company official named David stated that they expect the shortage to last several months and that they had no choice but to shut down production, as 90% of the products they manufacture require sugar. However, there are no plans for the company to completely terminate its presence in Venezuela at the time being.
This is not the first time that a food and beverage company has had to suspend production in Venezuela due to a shortage of essential ingredients. Just last month, Polar Group, the country’s largest private company has announced that they would not be able to continue producing beer or any other malt beverage as they were unable to secure barley, a key ingredient.
Other companies to scale back operations or exit the country entirely include Clorox and Avon Products.