Kellogg closes operations in Venezuela
According to the Associated Press, Kellogg has closed operations in Venezuela and laid off 300 workers.
According to the Associated Press, Kellogg has closed operations in Venezuela and laid off 300 workers. This comes at a time when the South American nation is facing widespread hunger, hyperinflation, shortages, and a recession worse than the Great Depression of the 1930s. In a statement, Kellogg said that it ceased operations as a result of the “current economic and social deterioration” in Venezuela.
The news angered Venezuelan President Nicolas Maduro who accused the company of trying to sabotage his chances of getting re-elected in the upcoming presidential vote. On May 15, workers arriving for the early shift were greeted by a notice taped to an iron gate informing them the company had been forced to close the plant.
The factory produced 75% of the breakfast cereals consumed by Venezuelans, according to Kellogg’s website. A spokeswoman for the company said its market share was lower than 75% but declined to say by how much.
Kellogg, which has stated that it looks forward to resuming operations once conditions in the country improve, has been producing cereal in Venezuela since 1961 and the market had at one point been its biggest in Latin America after Mexico. The cereal maker is not alone in its decision to exit the struggling nation; Bridgestone, Kimberly-Clark, and General Mills have also closed or reduced operations in Venezuela.