US-based breakfast cereal manufacturer Kellogg is reportedly pulling out of Venezuela as the country’s economic crisis intensifies ahead of this weekend’s presidential election.

Kellogg cited strict currency controls amid a plunge in the bolivar, a lack of raw materials and soaring inflation for its decision to exit the country, the BBC reported. A drop in oil revenue has starved the oil exporter of cash and reduced demand for the local currency. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Workers were apparently prevented from entering the plant in the central city of Maracay on Tuesday (15 May).

Venezuelan President Nicolas Maduro, who is standing for re-election in Sunday’s polls, told a rally that he would hand control of the factory over to the workers to keep the plant operational, adding that he thought Kellogg’s decision was ”unconstitutional”.

”In December of 2016, Kellogg de-consolidated its Venezuela business from the company’s results,” television news channel CNBC quoted a company statement as saying. ”The current economic and social deterioration in the country has now prompted the company to discontinue operations.”  

However, Kellogg has warned against sales of its brands ”without the expressed authorisation of the Kellogg Company”, but said it hoped to return to Venezuela in the future.   

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

”We’ve begun judicial proceedings against the business leaders of Kellogg’s because their exit is unconstitutional,” Maduro told supporters in the central state of Carabobo. “I’ve taken the decision to deliver the company to the workers in order that they can continue producing for the people.”