Venezuelans Face a New Threat – a Beer Shortage

[Bacchus4.0]

http://www.bloomberg.com/news/articles/2016-04-21/venezuelans-face-threat-of-a-new-ignominy-a-beer-shortage

Venezuelans, already frustrated by repeated power cuts and water restrictions, may soon suffer a new ignominy -- a beer shortage.

Empresas Polar SA, the country’s largest privately-held company and biggest brewer, said Wednesday that it will be forced to stop producing beer because it can’t get the foreign currency it needs to purchase malted barley.

“We haven’t been able to replenish inventory, and we only have malted barley until April 29,” the company said in a statement published on its website. “Because of that, we’re obligated to suspend the production of beer until we get access to the foreign currency necessary to procure the material.”


Venezuela is experiencing the worst recession in decades as the falling price of oil, which accounts for about 95 percent of foreign currency earnings, pushes international reserves to a 13-year low of less than $13 billion. In 2015, the economy contracted by 5.7 percent and is expected to shrink by an additional 8 percent this year, according to the International Monetary Fund. Inflation is projected to rise to nearly 500 percent.

[COLGATE4]

1. I don't know how much longer they can continue at this

pace. 500% inflation? That's Zimbabwe eonomics. Pretty soon it'll become a barter economy, eggs for flour.