It seems Clorox has experienced socialism firsthand and has had enough.
The company is ceasing all operations in Venezuela effective immediately. It cited operating restrictions set by the Venezuelan government as well as considerable economic uncertainty and continual supply disruptions as the culprits.
According to Clorox, its affiliate, Corporación Clorox de Venezuela S.A., was required to sell more than two-thirds of its products at prices frozen by the Venezuelan government for nearly three years. During that time, inflation jumped by triple digits and resulted in “massive” cost increases. As you might expect, it said it was selling at a loss and experiencing ongoing operating losses.
Apparently the Oakland, California-based company tried to work with authorities before abandoning the country. It said it repeatedly met with them to discuss the need for price increases and other actions. But it noted that the price increases that were approved were insufficient and would have resulted in continued operating losses.
Meanwhile, this is just the latest economic problem Venezuela has faced.
You may recall that its government took over a toilet paper factory in 2013 as a result of shortages. It also previously raided a warehouse because black marketers were believed to be withholding toilet paper rolls from the masses.
And you may remember the recent announcement that Venezuelans will face mandatory fingerprinting just to buy groceries. But don’t worry. It’s just an “anti-fraud” system to keep people from buying too much of a certain item, according to Venezuelan President Nicolas Maduro.