It’s Kraft vs. Kraft in Venezuela’s Strange Take on Capitalism
- Cheap imports are a threat to shrinking industrial sector
- American mayo, Mexican Oreos compete with Venezuela-made goods
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What’s left of Venezuela’s manufacturing sector has survived government expropriations, frequent blackouts, a currency collapse and equipment shortages. But now there’s another threat: competition from imported versions of the companies’ own products.
Shops across Venezuela stock Mexican-made Oreo cookies right next to the locally produced version. Kraft Heinz Co.’s mayonnaise is being imported from Brazil and the U.S., even though the company also makes the sandwich spread in the city of Valencia. Fifty-pound bags of American-made Purina dog food compete with the same product from Nestle SA’s plant in Aragua.