BATTLE CREEK, MICH. — The Kellogg Co. on May 15 announced it is discontinuing its operations in Venezuela (Alimentos Kellogg S.A.), effective immediately. Kellogg operates a facility in Maracay, Venezuela, that employs approximately 300 people.
“In December of 2016, Kellogg deconsolidated its Venezuela business from the company’s results,” Kellogg noted in an emailed statement. “The current economic and social deterioration in the country has now prompted the company to discontinue operations. All assets, contractual obligations and legal guarantees have been settled with Kellogg’s employees, suppliers and customers in Venezuela.”
Kellogg said product distribution in Venezuela has been suspended and the license agreement for the use and commercialization of its brands and characters in Venezuela has been terminated.
Kellogg has had a presence in Venezuela since 1961, and the market is its second largest in Latin America after Mexico.
“We thank the Kellogg team in Venezuela for their commitment and support,” the company said. “Kellogg continues to be committed to Latin America, and we look forward to resuming operations in Venezuela in the future, as soon as the conditions of the country allow it.”
According to a November 2017 report from Euromonitor International, Alimentos Kellogg “dominated” breakfast cereals in Venezuela with a 50% retail value share in 2017.
“The company manages a well-segmented product portfolio targeting different consumer groups,” Euromonitor said. “In children’s breakfast cereals, it ranked first with a 60% value share due to the well-established position of its flagship Kellogg’s Zucaritas (with a 31% value share) plus a combined 30% share generated by its brands Kellogg’s Froot Loops and Kellogg’s Choco Krispies. In family breakfast cereals, Kellogg’s Corn Flakes also held the leading position in 2017 with a 46% value share. The company manages other brands specifically aimed at adults such as Kellogg’s Special K and Kellogg’s All Bran.”