Venezuela has slowly been unraveling, and the world has been watching. The latest loss for the country reported by Open Corporates is one that might seem unexpected, beer. Empresas Polar SA, producer of 80% of the countries beer, has begun shutting down its plants across the country leaving just a week supply of beer. The company, like so many others located in the broken country, blames the government for the lack of ability to pay to import raw materials needed to make their product.
“Beer is just one of many things the country is coming up short on” says Jose Velasquez. Along with shortages on food and medicine, the country is having a hard time coming up with enough power for the country and has implemented blackouts each day to save power. Now the current beer shortage brings more problems to the country. Not only is it one more simple thing the citizens of the country will lose, but immediately will cause 6,500 people to lose their jobs followed by an additional 3,500 who will find themselves unemployed when beer stocks run out on May 6.
It is likely, similar to 1,200 other companies, the government will seize the closed plants and reclaim it as a production unit under their complete control. Despite the loss, the company cannot move forward producing beer because they are constantly at a financial loss due to price controls imposed by the government. The company also produces numerous food items that also have caused a financial loss and the company says they are currently in debt to foreign suppliers for over $380 million that has built over a three year period.
More information available at http://www.wsj.com/articles/beer-becomes-the-latest-scarcity-in-a-venezuela-wracked-by-shortages-1461963129