In January 2026, the US military's raid on Venezuela and the seizure of President Maduro abruptly altered the geopolitical landscape of this South American nation. For global consumer goods giant Procter & Gamble (PG.US), this upheaval introduces fresh uncertainty to its decades-long, complex involvement in Venezuela. As one of the first US consumer companies to enter the local market, P&G has now completely exited local manufacturing, maintaining only a presence through third-party distribution. Despite calls from the Trump administration for American companies to return, P&G has so far remained silent.

P&G's connection with Venezuela stretches back over seventy years. In 1947, the company first imported Ace laundry detergent into Venezuela, formally establishing an office three years later, which became its first operational foothold in South America. By 1952, P&G had built its first local factory, focusing on producing everyday consumer goods like detergents, and Venezuela gradually evolved into a crucial growth springboard for its operations on the continent. Up until 2013, P&G operated two factories in the country with a workforce exceeding a thousand, its product portfolio covering core categories such as fabric care and baby care.

However, the political turmoil and economic crisis during the Maduro government era fundamentally changed this situation. According to its 2015 annual report, P&G accumulated losses of over $600 million in Venezuela between 2013 and 2015. This prompted the company to write off all local assets in 2015, taking a $2.1 billion impairment charge, and removing the region's operations from its financial statement consolidation. Data at the time indicated that sales in the Venezuelan market accounted for less than 2% of P&G's global revenue, approximately under $1.5 billion.

To cope with the continuously deteriorating operating environment, P&G initiated a strategic retrenchment in the 2010s: it sold its headquarters in Caracas, repurposing the building into a technology center, and relocated senior management to more stable regions like Panama and Chile. The country's role shifted from a regional business hub to a high-risk outpost, culminating in the closure of all local factories and the complete termination of manufacturing operations.

Currently, P&G has explicitly stated it has "no factories, no R&D centers, and no employees" in Venezuela, maintaining product supply solely through a third-party distributor model. Core brands like Pampers circulate in the local market via dealer channels. This shift in operational model aligns with P&G's broader global business restructuring strategy in recent years; in June 2025, the company announced a mid-term restructuring plan aiming to cut 7,000 non-manufacturing jobs by mid-2027, while also exiting markets like Bangladesh and Pakistan.

Notably, descriptions stating that "the local area has two factories and one R&D facility" still remain on P&G's career recruitment website. In response, the company stated this information is outdated. P&G clarified, "In the following years, we ceased manufacturing operations and transitioned to a third-party distribution model." As one of the world's largest consumer goods manufacturers, P&G reported global sales of $84.3 billion for fiscal 2025, with the Latin America region (including Mexico and Brazil) contributing $5.9 billion in revenue, representing a 7% share. Although the Venezuelan market is limited in size, its status as the starting point for P&G's South American business lends it unique strategic significance.

The current sudden shift in Venezuela's situation presents a potential opportunity for P&G's return. The Trump administration has explicitly stated its desire for US oil companies to expand operations in Venezuela and repair the country's oil infrastructure, a policy direction that also creates an external environment conducive to consumer goods firms re-entering. Analysis suggests that if a US-led political transition materializes in the future, the relaxation of sanctions and economic normalization could offer mid-term benefits for P&G; in the most optimistic scenario, the company might selectively restart investments to rebuild a more profitable operation.

However, as of now, P&G has consistently remained silent on questions about returning to Venezuela. Its ultimate decision will likely depend on the evolution of the local situation, the pace of sanctions relief, and a balanced assessment against its global strategic priorities.