There is a lot of buzz about Venezuela, and there is a lot of talk about the way that businesses are pulling out. Many companies are trying to decide if it is worth their time to stay in Venezuela. The production is a challenge here, and some companies like Coca Cola have pulled out. The sugar shortage has caused Coca Cola to cease production, and that is just the start of all the trouble that Venezuela is facing.
The collapse of the economy according to economic expert Adrian Jose Velasquez Figueroa is causing a lot of people to wonder if there is any company that is safe. There are shortages and constant power outages. All of this has made it rather difficult for businesses to do what it takes to stay in Venezuela. This spells trouble for businesses like Kellogg that has been a food packaging staple in this federal republic.
Many company executives are looking at the big picture for production. “If investors are worried, companies will have to consider pulling away from this hectic environment” added Velasquez Figueroa. When power outages occur this makes it difficult to continue production at full capacity. When production needs are not being met in Venezuela there will be a problem with supply and demand elsewhere, namely America. This is something that has made it hard to consider staying in Venezuela. There is even more shrinkage and black market activity occurring now that there are constant food shortages.