The beverage corporation Coca-Cola has announced that suppliers in Venezuela will "temporarily cease operations due to a lack of raw materials".
This statement comes after the largest brewer of the country, Empresas Polar, shut down plants because of a shortage in barley.
The economy of Venezuela has significantly contracted as the prices of crude oil slumps.
According to a spokesperson of Coca-Cola, the corporationwould resume producing its sugarless drinks, including Coca-Cola Light (Diet Coke).
The spokeswoman stated, "We are engaging with suppliers, government authorities and our associates to take the necessary actions for a prompt solution."
The production of sugar has been plunging because of price controls, issues with obtaining fertilizers, as well as increasing costs of production.
With this, a lot of smaller farmers have turned to other crops which are not price controlled and bring in higher profits.
The country is anticipated to generate about 430,000 tonnes of sugarcane this year and the following year. This figure is lower in comparison to the 450,000 tonnes for the past year. Furthermore, Venezuela is expected to import 850,000 tonnes of raw and refined sugar.
The country’s economic woes have forced a lot of consumers to wait in line for hours to purchase basic food stuff.
The economy of Venezuela is forecasted to contract by 8 percent this year,after it shrank by 5.8 percent during the previous year.
The country’s dependence on oil to generate foreign currency and investment has resulted in regular recessions.
The Venezuelan President Mr. Nicolas Maduro has declared a state of emergency in an attempt to fight off the economic crisis. Some critics asserted that this is an effort to strengthen his grip on power.
Other multinational companies including Procter & Gamble, Ford, and Halliburton have either minimized or totally abandoned their investments in the country.