Chavez takes over another supermarket in Venezuela

Monday, 15 February 2010 10:35 News

By Chloe Pitts

Venezuelan president Hugo Chavez has announced plans to buy the Casino-owned supermarket chain Cada, a month after having expropriated the Exito chain owned by the same company.

Mr Chavez expropriated Exito, owned by the French supermarket chain Casino, after having accused them of changing prices to benefit from a surge in demand that saw many shoppers rushing  to buy up goods. The Cada chain, part owned by the same company, is the subject of a 'friendly negotiation' which would give the President increased control over food supplies in Venezuela after shortages damaged his reputation in the past.  

The Cada chain is owned by Cativen, which is owned by Casino and popular Venezuelan food manufacturer Polar. Mr Chavez has also ordered that warehouses belonging to the Polar chain be moved from the centre of the city of Barquisimeto to allow the building of new housing. The company, which makes popular food items and Polar beer, is to be investigated after employees claimed they are not being paid properly.   

Casino reacted to the nationalisation of the Exito chain by saying it would have little impact on earnings as the chain represented a small portion of the company's operations. Casino's fourth quarter results released in January showed that the French chain owed a large part of its 2.2% sales increase to its Latin American operations, however, and so the take over of Cada may cause more concern.

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