Coke Has Suspended All Production in Venezuela


#1

Fortune:

Coke Has Suspended All Production in Venezuela

Coca-Cola FEMSA has suspended all production in Venezuela because of a sugar shortage, the Mexican beverage multinational said in a statement. The company, the largest Coke KO -0.81% bottler in the world, told workers sugar supplies were too low and that the problem could persist for months, according to several media reports. Coca-Cola FEMSA, which operates across Latin American, said 90% of its products require sugar. At the same time, the company said that while it was closing its central office in Venezuela, it was not exiting the country.

Last month, Polar Group, Venezuela’s largest food and beverage company and biggest private company overall, said it would suspend production of beer and other malt beverages because of a lack of barley.
The suspension comes as Venezuela’s economy appears to be teetering on the brink of collapse. Earlier this week, President Nicolas Maduro repeated his threat to** seize closed factories and nationalize them**. And Reuters reported water levels have dropped close to a critical low in Venezuela’s main dam and hydroelectric plant, which provides the majority of the country’s electricity, leading the government to ration water. The oil-producing country’s economy is struggling to contend with low energy prices.

Make sure factories can’t get raw materials or electricity then seize them when they close – neat trick.


#2

We’ll see if the Inter- American Democratic Charter does anything positive in Venezuela. I don’t know much about the Organization of American States which is responsible for instituting it, or if they even have any teeth.

Venezuela should be held up as yet another Socialist humanitarian disaster.


#3

Tell your “friends” this when they ponder whether to vote for Bernie or Hillary. People don’t know history. It is so amazing. They’ll sell us all down the drain because they want “free” stuff, don’t know what they’re talking about, and so deeply in stupid, I wonder if we’ll make it. This country goes with either, you will have liberal judges on the Supreme Court for the next 30-40 years. The USA will never be the same. Four of the judges are in their 70s right now.


#4

Agreed.


#5

Venezuela today is at the end of the path our country is on with the socialist policies we keep implementing.

“Free College Tuition”? “Free Healthcare”? Go visit Venezuela.


#6

Geesh, what a crummy government. Sugar shortage, when they grow it!!!

This is not a talking point for Trumpists and conservatives; Canada has subsidized college tuition and medical as well, and they are sitting pretty. Rather, this is what happens when ideological demagogues take over a country and their successors don’t even try to correct the excesses.

ICXC NIKA


#7

Why are we promoting socialism here anyway of light of these failures? :confused:

Because the emotion tops the logic?


#8

Socialism is about government, not free market, distribution of wealth/resources.

Canada has 9 people per sq. mi. and $40K GDP per capita.

Venezuela has 87 people per sq. mi. and $4.2K GDP per capita.

USA has 84 people per sq. mi. and $56.4K GDP per capita.

All 3 counties are rich in natural resources.
Given these numbers, why would we ponder socialism.


#9

It is puzzling.Other than this agenda bring received by young,uninformed,or dare I say indoctrinated college students,who would fall for this?:eek:


#10

The Hollywood elite e.g. George Clooney, Susan Sarandon (she’s a senior), my neighbors, a couple who own their own business love the good life and want Bernie, trust fund babies who, in my estimation, feel guilty about their money so want to “help”, college students who have no knowledge of why their grandparents fled Russia but want socialism etc. etc. ]]

The Russian Revolution was financially supported, in part, by disgruntled elite kids who had access to Papa’s money and allowed the communists to kill their parents.


#11

Coca Cola, a large soft drinks company that is essentially the face of capitalism, still operates in Venezuela, but Venezuela is also apparently a socialist country. Venezuela, where something like 80% of the workforce are employed in the private sector, is apparently a socialist country.

Bernie Sanders is literally Vladimir Lenin.

Socialism is workers’ control of the means of production, the end of private property, the negation of capitalism. Not everything left of Ayn Rand is socialism.


#12

Decentralized free market voluntary economics works. Every time.

Socialism … centralized control system … fails.

Every time.

Yet socialism has an appeal … that a centralized control system is superior … and yet it fails constantly and consistently … every time it is tried … and advocates will not only refuse to acknowledge that socialism fails … but they will fight to YOUR death to insist that central control be adopted.

The intention is that centralized government can give you free stuff.

Whereas a decentralized free market voluntary economic system requires that everyone work AND everyone has to produce and gets rewarded according to how much they produce and must be able to be paid by the open market place. You have to be able to please your customer.

In a centralized control system you ONLY have to please the bureaucrat in charge.


#13

I went to the store just a few minutes ago. I bought two coca cola cans and 1 big plastic bottle of coca cola. - for the weekend. I opened a can, and stumbled upon this topic.

Always coca cola. :smiley:


#14

Interestingly, if you are in the U.S., you are probably drinking corn syrup rather than sugar.


#15

I’m European. So sugar for me - I think.


#16

The best CC is made in Mexico; they use real sugar.


#17

Venezuela is a net importer of sugar. In part, this is due to price controls on sugar which have motivated many farmers to grow more lucrative crops.

gain.fas.usda.gov/Recent%20GAIN%20Publications/Sugar%20Annual_Caracas_Venezuela_3-9-2015.pdf


#18

I couldn’t believe the story when I read it. Venezuela has been an economic mess for years. Reports are always coming out on how poor so many people are now in the country. Finding food and affording it could be very difficult.

Then I see Coke was just now shutting down business in Venezuela! People were buying coke still! Unreal. I don’t drink soda pop myself, but have heard it can be real addictive.


#19

In many countries in that world region, Coke and the like are often cheaper than purified water, and safer than natural water.


#20

Lucky you!


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