Venezuela bans Coke Zero

06-12-2009 | REUTERS

The decision follows a nationalization wave and increased scrutiny of businesses

Panama Star CARACAS. The Venezuelan government of US-critic President Hugo Chavez recently ordered Coca-Cola Co to withdraw its Coke Zero beverage from the South American nation, citing unspecified dangers to health.

The decision follows a wave of nationalization and increased scrutiny of businesses in South America's top oil exporter.

Health Minister Jesus Mantilla said the zero-calorie Coke Zero should no longer be sold and stocks of the drink removed from store shelves.

"The product should be withdrawn from circulation to preserve the health of Venezuelans," the minister said in comments reported by the government's news agency.

Despite Chavez's anti-capitalist policies and rhetoric against consumerism, oil-exporting Venezuela remains one of Latin America's most Americanized cultures, with US fast-food chains, shopping malls and baseball all highly popular.

Mantilla did not say what health risks Coke Zero, which contains artificial sweeteners, posed to the population.

Coke Zero was launched in Venezuela in April and Coca-Cola Femsa, the Mexico-based company that bottles Coke products locally, said at the time it aimed to increase its market share for low calorie drinks by 200 percent.

Neither Coca-Cola nor the bottler responded to requests for comment.

The government this year has seized a rice mill and pasta factory belonging to US food giant Cargill and has threatened action against US drug company Pfizer.

Chavez has also nationalized a group of oil service companies including projects belonging to Williams Companies and Exterran.