Published: Wed, May 16, 2018
Global News | By Blake Casey

Kellogg's latest USA brand to close door on Venezuela

Kellogg's latest USA brand to close door on Venezuela

USA -based food company Kellogg said on Tuesday 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 hyperinflation and strict price controls. The closure comes just five days before Venezuelans head to the polls to decide whether to re-elect President Nicolas Maduro.

"We've begun judicial proceedings against the business leaders of Kellogg's because their exit is unconstitutional", Maduro added to cheers from red-shirted supporters.

Maduro is blaming everyone for his mess, mostly the USA, but "accusing America of creating Venezuela's crisis is about as fair as accusing O.J. Simpson of murdering Princess Diana - I'm not saying it would be completely out of character, it just happens to not be true in this particular instance", Oliver said.

Kellogg announced its retreat earlier on Tuesday, making it the latest multinational to exit the oil-rich country, which is heaving under hyperinflation and strict price controls.

Kellogg did not specify the difficulties it was facing in Venezuela, but companies have typically been struggling to find raw materials due to product shortages and currency controls that crimp imports.

The Battle Creek, Michigan-based company said in a statement Tuesday that it was prompted to cease operations as a result of continued economic deterioration.

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Kellogg's is the most recent company to pull out of Venezuela, following the likes of Colgate-Palmolive, General Mills and Kimberly-Clark.

In the past, his government has taken over the factories of some companies that have left the country.

In family breakfast cereals, Kellogg's Corn Flakes also held the leading position in 2017 with a 46% value share.

Alimentos Kellogg S.A. has shuts the doors of its a facility in Maracay, Venezuela, that employs approximately 300 people.

However, Kellogg has warned against sales of its brands "without the expressed authorisation of the Kellogg Company", but said it hoped to return to Venezuela in the future.

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