Dive Brief:
- A Velveeta shortage is hitting Kraft Foods Group at the most inopportune time of the year, right as chips-and-dip season peaks.
- The food giant was contacted by Advertising Age following reports of shortages in East Coast grocery stores, telling the trade publication in an e-mail that they expect the shortage to be a short-term issue.
- Inititally, spokeswoman Jody Moore said that it was "possible" consumers wouldn't be able to find the product in the next few weeks because of its "incredible popularity" during this time of year, and while that might be the driver, she later conceded that a combination of factors are involved.
Dive Insight:
No specifics were provided on what those other factors are, but one thing is certain — the company is at risk of losing sales during the winter sports chips-and-dip season, especially with the NFL Playoffs and Super Bowl now looming large in shoppers' minds. What else isn't clear is whether the shortage affects only original Velveeta or associated products, as well. The company reported growth in the brand during the third-quarter, thanks in large part to Velveeta slices and dinner kits. Whatever the issues may be, Kraft will need to swiftly confront them to minimize losses.