First Venezuela’s top brewery stops making beer because of a barley shortage, and now in a report published by Linked In, the Coca-Cola company is going to suspend production because of a shortage of sugar. This is a problem that FEMSA believes could last for quite a few months, maybe longer. According to FEMSA, their sugar suppliers in South America paused operations due to the sugar shortage. This is causing FEMSA to rely on dwindling sugar stocks. Coca-Cola FEMSA, serving Latin America, claims that 90 percent of their products require sugar. FEMSA, the largest Coke bottler in the world, is closing their central office in Venezuela but has no plans to leave the country. FESMA runs four Coca-Cola plants in Venezuela. FEMSA was founded in 1974 and its main headquarters are located in Monterrey, Mexico. It has had a place on the Mexican Stock Exchange since 1978.
FEMSA employs more than 100,000 people around the world. With more than 350 million customers, FEMSA has over 100 different kinds of soda under the Coca-Cola name. This means as explained by analyst Manuel Gonzalez it is possible that Venezuela won’t be seeing Sprite, Fanta, Fuze, or Vitamin Water for sometime to come. Venezuela’s economy seems to be close to collapsing. Earlier this week, President Madura had threatened to nationalize all the closed factories.
So far, Venezuelans are learning to live without Clorox after they pulled their supplies out of Venezuela. Avon has scaled back their beauty products.