Photo: abc News

Venezuela woke up today with reports on social media about Kellogg’s closing down its entire national operation. At first, the news was difficult to corroborate, but it was finally confirmed by the American company in a statement.

In Maracay, where Kellogg’s factory is located, workers found a piece of paper at the closed gates. Hundreds were left unemployed and a commission led by Labor Minister Nestor Ovalles arrived to make an inspection and decide the company’s future.

Kellogg’s says that “the current economic and social deterioration in Venezuela” is the reason behind the shutdown. Already deconsolidated from its overall results in December of 2016, this Venezuelan branch hopes to resume work “as soon as conditions allow it.”

You can’t say the company didn’t make efforts to adapt: Two years ago, under the excuse of recycling, it launched a colorless version of their cereal boxes, to save production costs. A sacrifice, as we were behind Mexico as their most important market in the region.

In the end, it wasn’t enough. Now Kellogg’s joins other international companies that have left Venezuela in recent times. Not the desired ending after 57 years of history in our homes, let’s hope this isn’t the final chapter after all.  

***

Just as we were editing this piece, President Maduro announced his government would initiate legal actions against Kellogg’s “because the closing of their doors is unconstitutional.” He added that he would hand the company over to the workers:

After 15 years of failed expropriations en masse, we can honestly say this will be a waste of resources that won’t translate into more food for Venezuelans.

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33 COMMENTS

  1. Maduro will probably have plant management arrested for carrying out the “unconstitutional” act of closing the plant even though managers were only carrying out orders from corporate. In the end it really does not matter….I heard that cereal with MALK tastes horrible anyway!

  2. After seeing the behavior the dictatorship as of late, I bet the executives were whisked out of Venezuela and they got some poor sap to lock up. It would be interesting to know if some “Argo” criollo happened.

  3. This must be another result of that damn “economic war” being waged by the evil empire! The empire cunningly struck a major blow by depriving the regime of Cheerios and sugar frosted cornflakes! I bet we pull doughnut manufacturing out next…that will bring Maduro to his knees…he looks like a big fan of the doughnut!

  4. Perfectly predictable (and predicted). There was only one way out, from what I see and the gossip reports, they did the Clorox way to escape from this shithole.

  5. If Kellogg couldn’t turn a Bolivar, good luck to the Chavistas who appropriated the factory. Would be interesting to see a photo of the interior of the factory in two weeks time.

    But what must just crucify those still left there (including one of my own) is that Maduro just spent nearly half a billion dollars buying gas for Cuba, meanwhile bodies are exploding in the hospitals and kids are dying. Dios…

    • “Would be interesting to see a photo of the interior of the factory in two weeks time.”

      The Chinese railroad factory lasted less than one week — even the building was taken.

  6. Kellogg’s closing down its entire national operation… workers found a piece of paper at the closed gates. Hundreds were left unemployed.”

    Question is how many “workers” did Kellogg have nationally, (most of them complicit thieves in various ways), plus the thousands of people indirectly affected, including drivers, union leeches, customs agents with less kickbacks, guardia nazional and their daily ‘vacunas’, the entire Kleptozuelan supply chain, plus the financial mordidas involved, plus tens of thousands of final “pueblo” consumers. Hundreds of thousands, millions? Most of them culpable, one way or another, everywhere, at all levels. Except the top American level, that shut that den of thieves down.

    Now among all those people, most of them corrupt and/or uneducated, how many blame El Imperio or an “economic war” for all this? I bet more than half of Kellogg’s direct employees will think that it’s the fault of “burguesitos”, the “derecha fascista” , the “gringos”. That’s why the country is how it is. The abysmal cluelessness of its own people, the average “pueblo”. The pervasive corruption and complicity of the Millions of regular people leeching off the entire fiasco, in countless ways. And many of them will believe the usual Galactic Mega Turds from Nicolasno and the “oficiales”, lah autoridadeh..

    The Mexicans and the Brazilian corrupt ultra-thugs in the Fantastic Food Guiso must be salivating: They’ll be replacing some of Kellogg’s entire production with some insufferable products, getting astronomical kickbacks on every shipment. You see, the entire country is rotten, including most of its people. And the neighbors are no saints either.. Ask Oderbrecht. Corruption and/or lack of education, zero moral values. Always the fundamental reasons behind their disasters.

  7. Each business that leaves Venezuela is a business opportunity for the Chavistas and one less enterprise indeprndent of the state. I have seen lists of western compsnies that have left Venezuela but am mindful that Cuba struggles along essentially without foreign private businesses. I think Maduro and his bunch are getting close to their goal of a one party state with the means of manufacture and distribution controlled by their government The analogy I keep thinking about is when a publicly traded company is taken private in the US. Once private it is subject to less regulation and less reporting. What appears to be self destruction may in the eyes of the leftists be a necessary step in the transition to a communist state. If the Chavistas can keep control of the military and security forces we may be witnessing the birth of the second communist state in the western hemisphere. What are the odds? I”d guess their chances sre about 50%.

  8. Oh they should have waited until next week because Henry Falcon is going to win the elections in this clean and legit contest of May 20th, the Chavistas will accept the results and the country will recover!

  9. Please confirm that foto of maduro is dated.. Can he dare appear in public?

    Read the aricle, and it has been 4 years since Chlorox closed? My how time flies when enjoying the beautiful revolution! I wonder how that plant is operating now.. Kidos to Kellogs for lasting so long.. I’d like to see an interview of the employees.. who’s at fault for the closings?

    “Maduro’s government also stops companies from raising prices to keep up with hyperinflation, denting profits and SOMETIMES rendering operations unsustainable.”. I’d like to ask that author under what conditions not raising prices during hyperinflation where operations are sustainable? Just one example?

  10. Why crying?, it was a gringo breakfast anyway and with no milk available to mix then it is a good riddance. Now, the revolution will finally realize the dream of commercializing the real Revolutionary Venezuelan and Madurista breakfast:
    Dehydrated empanadas de cazon & carne mechada in the CLAP bags. Add water, shake and ta-da!

    Despierta el Diosdado que hay en ti! grrr

  11. Read in a Whastapp post (may be gossip, though…) that Kellogg was subject to blackmail from a newly elected union 2 years ago, supported by the then Governor Tarek el Aisami, today Vice President. The company had to send once a week a truck with products to the Tocoron Jail. They stopped doing that in October last year, and then the union started with protests and strikes. Last February the Plant Security Superintendent (A retired Army Major) challenged the Union in one of those illegal strikes and was later killed with a gunshot to his head in Maracay, after a vehicle intercepted him. This was the last straw that precipitated the plant closure.

    • Managed to get hold of the original text: Con respecto a lo que pasó con Kellog, la otra historia que no se cuenta es la siguiente:
      Hace dos años, se hicieron elecciones en la planta de Maracay para elegir al nuevo sindicato y el que ganó fue el que estaba apoyado por el gobernador Tarek. No solo eso, el mismo estaba conectado directamente con el pran de Tocoron e inmediatamente comenzaron a exigirle el cobro de vacuna a la empresa quien ante la presión de los sindicalistas, optó por acceder al pago para poder mantener las operaciones. La vacuna consistía en el envío semanalmente de un camión cargado de productos para tocoron.
      Esta práctica se mantuvo hasta el pasado mes de octubre donde dejaron de pagar la vacuna y allí comenzó el calvario de la empresa con paros, protestas, etc que sumado al tema económico, llevó a la casa matriz a decidir el cierre.
      Vale acotar que en febrero del pasado año, el jefe de seguridad de esa planta quien era un mayor retirado del ejército, se le plantó al sindicato en un cierre ilegal y a la semana apareció muerto tipo ejecución con un tiro en la frente luego que un vehículo lo interceptó en una avenida de Mcay. Toda esta situación precipitó el cierre.

      El chavismo siempre detrás de la ruina del país.

  12. You nationalize the oil, that other country’s companies built up, and you take them without payment, been happening to everything for decades, now this Kellogg event and just like the oil, nothing will get better, you can’t even run a factory, much less a country….pitiful…you bad mouth the US, yet you accept the aid every year. We’ll just stop all the aid, pull our factories that help your employment opportunities and let you fade away. You don’t even care your own people are leaving the pit by the droves…..again…pitiful.

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