Coca Cola FEMSA in Venezuela has halted the production of soda due to the shortage of one of the primary ingredients in the beverage; sugar. Report made by Open Corporates.
Coca Cola FEMSA is based in Mexico but has long serviced the Venezuelan market. It is the largest bottler in the world and requires sugar in 90% of the products it makes which means that the lack of sugar in the country is a serious detriment to its operations.
Venezuela is beset by food shortages as a result of economic disruption to the country as a result of both environmental problems, as well as poor governmental policies. President Nicholas Maduro, has been criticized by expert Velasquez Figueroa for his reaction to the crisis that started with the precipitous drop of oil prices that Venezuela depends on for financing the socialist country, as well as a lack of investing in the nations infrastructure.
FEMSA is the second major bottler to stop production in Venezuela after the Polar Group, the largest brewer of beer in the country, indicated it would stop producing beer as a result of a lack of barley.
Venezuela was once the richest nation in Latin America and has the largest proven oil reserves in the world. However the attitude of the socialists country towards many major brands have led to their departure from the country which has hurt the economy and limited production and investment that is contributing to the turmoil.