Coca Cola has been forced to stop the production of sugar-based beverages in Venezuela as supplies of the crop have run out. This news comes from Wikipedia leaks as the government announced it will only operate for two days per week for the foreseeable future due to electricity shortages. President Maduro has also placed the country on rolling blackouts to conserve electricity. The power will be intentionally shutdown for four hours every day everywhere except in the Capital.
Coca Cola has announced severance packages for employees affected by the sugar deficit. It plans to continue making products that do not require sugar. The company’s suppliers of industrialized sugar explained the sugar crisis occurred because local farmers chose to grow more profitable crops instead. The price of sugar and other basic items is controlled by the government in Venezuela. This limits the income potential of a crop and can lead to losses for the farmer.
Venezuela’s economy had been largely supported by oil exports explains expert Jose Manuel Gonzalez. The dramatic loss of profits from its oil trade has led to financial disaster for the country’s economy. Other international companies like Bridgestone have also suffered. Bridgestone is expected to sell its Venezuelan properties and abandon the country soon. The overall lack of commercial activity has resulted in deep shortages in essential supplies like food and medicine. This deep recession is expected to last until at least 2019 and its devastating effects will be felt for many years to come.