Kellogg’s exits Venezuela over social and economic ‘deterioration’

Kellogg’s announced on Tuesday that it will end its operations in Venezuela, citing “economic and social deterioration” in the country.

“In December of 2016, Kellogg deconsolidated its Venezuela business from the company’s results,” Kellogg’s statement read. “The current economic and social deterioration in the country has now prompted the company to discontinue operations.”

The maker of Frosted Flakes and Rice Krispies did not specify what led it to pull out of Venezuela, but said none of its products should be commercialized there without its permission.

While the move is not expected to worsen food shortages in the country, Kellogg’s is the most popular and easily accessible cereal for citizens in the country, according to Reuters.

Kellogg’s is the most recent company to pull out of Venezuela, following the likes of Colgate-Palmolive, General Mills and Kimberly-Clark.

Last year General Motors exited its operations there after a factory was seized by the Venezuelan government.

Chevron evacuated employees last month from Venezuela after the country’s government arrested two workers.

Social and economic upheaval have made operating in the country difficult for foreign companies. Venezuela is undergoing a multiyear recession even though it sits on one of the largest oil reserves in the world. Inflation accelerated to 2,616% in 2017, according to Reuters. Last year, GDP shrank more than 13%, as reported by the opposition-led party.