Sector News

Kellogg closes operations in Venezuela amid country’s ‘deterioration’

May 16, 2018
Food & Drink

Kellogg Co., citing the “deterioration” of a country in the midst of an economic meltdown, said Tuesday it was closing operations that employed 400 workers and produced the majority of the breakfast cereal consumed by Venezuelans.

“The current economic and social deterioration in the country has now prompted the company to discontinue operations,” the Battle Creek, Mich.-based company said.

Workers who arrived at the company’s plant in Maracay in central Venezuela found a communiqué from Kellogg’s saying it had closed. The government’s labor minister, Néstor Ovalles, then arrived at the plant, and told the workers the state would “ensure their rights and employment.”

Kellogg did not elaborate on what prompted it to leave Venezuela, but companies here face strict price controls, heavy red tape, hyperinflation, currency controls and a lack of machine parts. Many other major companies have fled as Venezuela’s economy has contracted by 40% in the last five years, including Kimberly-Clark, General Mills and companies that pump oil or service that industry.

An expanded version of this report appears on WSJ.com.

By Juan Forero

Source: Wall Street Journal via MarketWatch

Related News

February 28, 2021

Tetra Pak introduces certified recycled PE polymers for food contact applications

Food & Drink

Two Tetra Pak production sites in Europe are now certified to produce packaging with recycled polyethylene (rPE) polymers, according to the Roundtable on Sustainable Biomaterials (RSB) Chain of Custody mass balance attribution method.

February 28, 2021

Cargill names Brian Sikes as chief operating officer

Food & Drink

Cargill has appointed Brian Sikes as its chief operating officer (COO), a role in which he will also serve as a management director on the company’s board.

February 28, 2021

Heineken and Coca-Cola System realign Brazil distribution partnership

Food & Drink

Heineken has reached an agreement with The Coca-Cola Company and the Coca-Cola System in Brazil to redesign their long-standing distribution partnership in the country.

Send this to a friend