Coke Zero has been a successful venture for Coca Cola around the world– but the drink’s name has turned out to be a prediction of its commercial prospects in Venezuela.

In a surprising move that bodes ill for foreign investment in Venezuela, President Hugo Chávez’s government has banned the sale of the calorie-free soft drink over apparent ‘health concerns’, prompting a mad dash to remove the product from shelves and vending machines.

The true motives behind the decision are not yet clear, however, health concerns sound far from legitimate. For example, China’s government, once infamous for its public health standards now undertaking a national initiative to curb the stigma in order to attract FDI, has stated that the product is safe and meets all necessary regulations in China.

Zhai Mei. Director, Public & Comm. Affairs, Coca Cola China, said, “Our products are absolutely safe, there’s no problem. And the Venezuelan government has not explained why it banned the product.”

So why did the Venezuelan government choose to abandon a lucrative venture, a product which promotes a healthier lifestyle and furthers economic growth both in the interior and for Coca Cola? 

The answer may be political in nature.

In recent months, Chávez has assailed symbols of the US and indeed globalization in his drive for a socialist revolution in South America’s oil exporter.In the past two years, the government has nationalized and expropriated the assets of foreign companies involved in sectors such as oil, food, cement and banking. While Chavez has not yet threatened to take over Coca-Cola, which is run by Mexico’s Grupo Femsa out of Venezuela, he has criticised it over a labour and land dispute at its bottling plant in the capital, Caracas.

Jose Vicente Leon, Director of the polling firm Datanalisis, stated that by going after big name symbols such as Coca Cola, the President was sending a message that no company was safe. In a nation where investment is almost discouraged, one can view this as merely another precedent of a mismanaged government ran by a fanatic dictator with no real economic strategy besides nationalization purely for political purposes. Where FDI is discouraged in one of South America’s most prominent nations, one can summarize their economic future thanks to political leadership in two words: iceberg ahead.