This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-36365336
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Sugar shortage cuts Coca-Cola production in Venezuela | Sugar shortage cuts Coca-Cola production in Venezuela |
| (about 5 hours later) | |
| A sugar shortage has forced Coca-Cola to stop producing soft drinks in Venezuela amid an escalating food and energy shortage. | A sugar shortage has forced Coca-Cola to stop producing soft drinks in Venezuela amid an escalating food and energy shortage. |
| Coke said that suppliers in Venezuela will "temporarily cease operations due to a lack of raw materials". | Coke said that suppliers in Venezuela will "temporarily cease operations due to a lack of raw materials". |
| The announcement comes after the country's biggest brewer, Empresas Polar, closed plants due to a barley shortage. | The announcement comes after the country's biggest brewer, Empresas Polar, closed plants due to a barley shortage. |
| Venezuela's economy has contracted sharply as oil prices plunge. | Venezuela's economy has contracted sharply as oil prices plunge. |
| A Coca-Cola spokesperson said the company would continue producing sugarless drinks such as Coca-Cola Light (Diet Coke). | A Coca-Cola spokesperson said the company would continue producing sugarless drinks such as Coca-Cola Light (Diet Coke). |
| "We are engaging with suppliers, government authorities and our associates to take the necessary actions for a prompt solution," she said. | "We are engaging with suppliers, government authorities and our associates to take the necessary actions for a prompt solution," she said. |
| Sugarcane production has been falling due to price controls and rising production costs, as well as problems in obtaining fertiliser. | |
| As a result, many smaller farmers have turned to other crops that are not price controlled and thus generate higher income. | |
| Venezuela is expected to produce 430,000 tonnes of sugarcane in 2016/17, down from 450,000 tonnes for the previous 12 months, and import 850,000 tonnes of raw and refined sugar, according to USDA figures. | |
| The economic problems have forced many consumers to queue for hours to buy basic foodstuffs. | The economic problems have forced many consumers to queue for hours to buy basic foodstuffs. |
| Venezuela's economy is expected to shrink by 8% in 2016 after it contracted by 5.8% last year. | Venezuela's economy is expected to shrink by 8% in 2016 after it contracted by 5.8% last year. |
| Its reliance on oil to generate foreign currency and investment has made it a victim of regular recessions. | Its reliance on oil to generate foreign currency and investment has made it a victim of regular recessions. |
| President Nicolas Maduro has instituted a state of emergency in an effort to combat the economic crisis. Critics argue it is an attempt to increase the military and strengthen his grip on power. | President Nicolas Maduro has instituted a state of emergency in an effort to combat the economic crisis. Critics argue it is an attempt to increase the military and strengthen his grip on power. |
| Meanwhile, tyre maker Bridgestone said on Monday it was selling its Venezuelan business after six decades in the country. | |
| The company's Venezuelan assets will be sold to Grupo Corimon. | |
| Other multinational firms such as Ford, Procter & Gamble and Halliburton have either slowed or abandoned their investments in Venezuela. |