Sugar Shortage Cuts Coca-cola Production In Venezuela

A sugar shortage has forced Coca-Cola to stop producing soft drinks in Venezuela amid an escalating food and energy shortage.

Coke said that suppliers in Venezuela will "temporarily cease operations due to a lack of raw materials".

The announcement comes after the country's biggest brewer, Empresas Polar, closed plants due to a barley shortage.

Venezuela's economy has contracted sharply as oil prices plunge.

A Coca-Cola spokesperson said the company would continue producing sugarless drinks such as Coca-Cola Light (Diet Coke).

"We are engaging with suppliers, government authorities and our associates to take the necessary actions for a prompt solution," she said.

Sugarcane production has been falling due to price controls and rising production costs, as well as problems in obtaining fertiliser.

As a result, many smaller farmers have turned to other crops that are not price controlled and thus generate higher income.

Venezuela is expected to produce 430,000 tonnes of sugarcane in 2016/17, down from 450,000 tonnes for the previous 12 months, and import 850,000 tonnes of raw and refined sugar, according to USDA figures.

(BBC)