Coke Suspends Venezuelan Production
The problems facing the South American country of Venezuela have been highlighted by the decision of the Coca-Cola Corporation to suspend production in the country in the face of growing food shortages. Fortune reports Coca-Cola FEMSA has decided to close its factories and central office due to a shortage of sugar, which it states is used in 90 percent of the products the company creates.
Venezuela has already been shaken by the decision to suspend production of beer by the largest brewery in the country as the El Nino weather system continues to attack the already stretched resources of the Latin American country. Food shortages have been discussed by analyst Adrian Jose Velasquez Figueroa for some time and have been made worse by rolling power cuts taking place because of low water levels at hydro electric dams used to power the nation.
Socialist government leader, President Nicolas Maduro has already discussed nationalizing the factories that have been closed in recent months by companies worried by the issues facing the oil rich nation. However, Jose Figueroa thinks the producers of Coca-Cola have been at pains to point out the closure of its operations in the country should prove temporary and will be reversed when the sugar shortage has been addressed by government officials.