U.S.-based food company Kellogg said on Tuesday it had pulled out of Venezuela due to its brutal economic crisis, the latest business to end operations in the oil-rich nation heaving under hyperinflation and strict price controls.
"In December of 2016, Kellogg deconsolidated its Venezuela business from the company's results. The current economic and social deterioration in the country has now prompted the company to discontinue operations," Kellogg said in a statement.
Kellogg did not specify what difficulties it was facing in Venezuela, but companies typically struggle to find raw materials due to product shortages and currency controls that crimp imports. Socialist President Nicolas Maduro's government also stops companies from raising prices to keep up with hyperinflation, denting profits and sometimes rendering operations unsustainable.
Venezuela's Information Ministry did not respond to a request for comment.
The closure is not expected to significantly worsen food shortages in Venezuela, but it was a further blow to morale for many Venezuelans as Kellogg's is the most popular and available cereal in the country.