Kellogg pulls out of crisis-hit Venezuela

Kellogg pulls out of crisis-hit Venezuela

"The current economic and social deterioration in the country has now prompted the company to discontinue operations", Kellogg said in a statement, noting that it had already written off the value of its Venezuela holdings.

Venezuelan authorities said they were handing a Kellogg Co plant to workers and reactivating production at the factory on Wednesday, a day after the USA cereal producer pulled out of the crisis-hit country. Poor access to raw materials and scarce dollars to import goods due to currency controls impaired Kellogg's ability to operate its Venezuelan subsidiary, the company said in February.

But President Nicolas Maduro called the closure "absolutely unconstitutional and illegal" and said the factory had been handed to workers and would continue cereal production.

"In December of 2016, Kellogg deconsolidated its Venezuela business from the company's results".

Venezuela's Information Ministry did not respond to a request for comment.

Venezuela on Wednesday reactivated a Kellogg plant under work control, a day after the cereal maker joined an exodus of USA companies from the crisis-wracked country. Previously, workers had said that they had been prevented from entering the plant in the central city of Maracay on Tuesday.

The move by the multinational was a typical one in Venezuela after years of economic crisis.

In leaving Venezuela, Kellogg joined such companies as Clorox, Kimberly-Clark, General Mills, General Motors, and Harvest Natural Resources. Oliver illustrates how the country has been led astray by its leadership, from the shortsighted government of the late Hugo Chávez to the outright corruption and catastrophic food shortages seen under Chávez's hand-picked successor Nicolás Maduro, an aspiring authoritarian who would rather obfuscate the truth, play the blame game, or outright change his government's rules to protect his power than fix Venezuela's problems.

The Kellogg Company says it's closing operations in Venezuela at a time of widespread hunger in the crisis-wracked South American nation.

It also said it hoped to return to Venezuela in the future and warned against sales of its brands "without the expressed authorization of the Kellogg Company". In 2014, authorities took over two plants belonging to US cleaning products maker Clorox Co after its departure.

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