Kellogg out of Venezuela due to its ‘economic and social deterioration’
Kellogg's is the most popular and available cereal in a country beset by product shortages; stunned workers were barred from entering the main Kellogg plant
Caracas/Valencia — US-based food company Kellogg said on Tuesday that it had pulled out of Venezuela due to its brutal economic crisis, the latest business to end operations in the oil-rich nation heaving under hyper-inflation and strict price controls. "In December of 2016, Kellogg de-consolidated its Venezuela business from the company’s results. The current economic and social deterioration in the country has now prompted the company to discontinue operations," Kellogg said in a statement. Kellogg did not specify what difficulties it was facing in Venezuela, but companies typically struggle to find raw materials due to product shortages and currency controls that crimp imports. Socialist President Nicolás Maduro’s government also stops companies from raising prices to keep up with hyper-inflation, denting profits and sometimes rendering operations unsustainable. Venezuela’s information ministry did not respond to a request for comment. The closure is not expected to significantly...
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