Kellogg Leaves Venezuela Amid Financial Disaster

Corn Flakes could also be even scarcer in Caracas.

Kellogg Co. mentioned Tuesday it’s going to discontinue operations in Venezuela instantly, blaming the rustic’s “financial and social deterioration,” the corporate mentioned in an emailed commentary.

The meals large is solely the newest global corporate to partly or totally shut store within the bothered and chaotic country, following others similar to Kimberly-Clark and Colgate-Palmolive. Deficient get admission to to uncooked fabrics and scarce bucks to import items because of foreign money controls impaired Kellogg’s skill to function its Venezuelan subsidiary, the corporate mentioned in February.

Venezuela’s President Nicolas Maduro mentioned excellent riddance.

“The corporate has been passed to the employees,” he mentioned at a rally within the central state of Carabobo. “It’s going to proceed to function within the arms of the running magnificence.”

Kellogg’s merchandise, from Zucaritas — candy corn flakes — and Nutri-Grain bars, had been recurrently discovered on Venezuelans’ breakfast tables and pantries. However grinding meals shortages and rampant inflation have put even cereal past the buying energy of maximum households within the hungry nation.

The Fight Creek, Mich.-based corporate had already modified how it counted effects from that operation on the finish of 2016. All its contractual duties had been settled with staff, providers and consumers, the corporate mentioned, whilst the license settlement for the usage of its manufacturers and characters in Venezuela has been terminated.

Via Patricia Laya and Craig Giammona