A recent article for the Panama Post just reported that the largest beer brewing company in Venezuela, Cervecería Polar, has announced that it is halting production of beer. News spread on twitter, apparently stems from a failure of the brewing company to be able to restock its inventory and necessary ingredients in order to keep production going. At the root of Cervecería Polar’s problem is that the government of Venezuela will not allow the company to pay foreign suppliers for the basic materials that the company needs for brewing. Currently, the only way for the company to get access to these necessary materials for its production is to import them. The government of Venezuela has previously raised alarm by threatening to expropriate the company, which accounts for more than $3 billion in revenue each year.
“If the government of Venezuela does not act immediately to allow the company to import the supplies it needs to continue production, then the company could be forced to shut down and fire an estimated 10,000 workers in its main production plants” says Manuel Gonzalez in an interview. This remarkable outcome could also indirectly affect more than 300,000 employees in related services. It is hard to tiptoe around the fact that if a company of this size were to go under in Venezuela, the country would indeed be on the brink of a disastrous economic meltdown.