Sudden changes in the situation have spawned opportunities. Will consumer goods giant Procter & Gamble (PG.US) return to Venezuela?

The Zhitong Finance App learned that in January 2026, the US military raided Venezuela and detained President Nicolas Maduro, causing a sudden change in the geopolitical landscape of this South American country. For global consumer goods giant Procter & Gamble (PG.US), this change has also brought new uncertainty to its decades-long Venezuelan business — the American consumer company that first entered the local market has now completely withdrawn from local production and only maintained its existence through third-party distribution. However, in the face of the Trump administration's appeal to push back American companies, P&G has remained silent until now.

70 years of deep cultivation: from regional hubs to strategic contraction

P&G's roots with Venezuela date back more than 70 years. In 1947, P&G imported Ace laundry detergent to Venezuela for the first time, and officially set up an office three years later, which became its first business base in South America. In 1952, P&G built its first factory in the region, focusing on the production of everyday consumer goods such as detergents. Venezuela gradually developed into an important springboard for growth in mainland South America. Until 2013, P&G had two local factories with over 1,000 employees, and its products covered core categories such as laundry care and baby care.

However, the political turmoil and economic crisis during Maduro's administration completely changed this situation. According to the 2015 annual report, between 2013 and 2015, P&G's cumulative losses in Venezuela exceeded 600 million US dollars, which prompted the company to write off all local assets in 2015, accrue impairment of 2.1 billion US dollars, and move the regional business out of the scope of consolidated financial statements. According to data at the time, sales in the Venezuelan market accounted for less than 2% of P&G's total global revenue, or less than 1.5 billion US dollars.

In order to cope with the worsening business environment, P&G began a strategic contraction in the 2010s: the headquarters in Caracas was sold and converted into a technology center, senior management moved to stable regions such as Panama and Chile; changed its positioning from a regional business hub to a high-risk outpost, and finally shut down all local factories and completely terminated manufacturing operations.

Status: Third-party distribution continues to lag behind in official website information

Currently, P&G has clearly stated that it “has no factories, no R&D centers, and no employees” in Venezuela, only maintains product supply through a third-party distributor model, and that core brands such as Pampers circulate in the local market through dealer channels. This shift in operating model echoes P&G's global business restructuring strategy in recent years — in June 2025, P&G announced the launch of a mid-term business restructuring plan to cut 7,000 non-manufacturing jobs by mid-2027, while also withdrawing from markets such as Bangladesh and Pakistan.

Notably, the P&G job recruitment website still maintains a description of “two local factories and an R&D facility.” In response, the company said that the relevant information was out of date. P&G said, “Over the next few years, we stopped manufacturing and switched to a third-party distribution model.”

As one of the world's largest consumer goods manufacturers, P&G's global sales reached US$84.3 billion in fiscal year 2025, of which the Latin American market (including Mexico and Brazil) contributed US$5.9 billion in revenue, accounting for 7%. Despite the limited size of the Venezuelan market, the region still has special significance in its strategic layout as the starting point for its South American business.

Under Geographic Changes: Return to Opportunity and Risk Coexist

The sudden change in the current situation in Venezuela provides potential for P&G to return to business. The Trump administration has clearly stated that it wants US oil companies to expand operations in Venezuela and repair the local oil infrastructure. This policy orientation has also created an external environment for consumer goods companies to return.

According to the analysis, if the US-led political transition is realized in the future, the easing of sanctions and economic normalization are expected to bring medium-term benefits to P&G. Under the most optimistic circumstances, the company may selectively restart investment to rebuild a more profitable business.

However, up to now, P&G has remained silent on questions about returning to Venezuela, and its final decision may depend on the evolution of the local situation, the progress of sanctions lifting, and the balance of global strategic priorities.