Dip Dilemma: Is Kraft Running Out of Velveeta?

Company Says Shortage is Short-Term

By Published on . 3

Kraft Foods Group is grappling with a Velveeta shortage just as the dip season kicks into full gear.

"Given the incredible popularity of Velveeta this time of year, it is possible consumers may not be able to find their favorite product on store shelves over the next couple of weeks," Kraft spokeswoman Jody Moore said in an email. "Our retail customers are aware of the situation and we expect it to be a short-term issue."

Ad Age contacted Kraft about the issue after reports of a shortage at a few East Coast grocery stores. According to an employee of a Brooklyn-area grocery, they weren't expecting shipments again until February due to a plant issue. When pressed for details, Ms. Moore said: "I can tell you there is a combination of factors involved, but the driver is really the high demand." She added: "We really haven't heard much from consumers about it at all. It's a short-term issue amplified by the fact that this is a key time for the brand."

Whatever the reason, Kraft could be losing out on sales as consumers search for dip options as they watch the NFL playoffs and other winter sporting events on TV. In recent years Kraft has formed a unique partnership with competing food company ConAgra to jointly promote Velveeta and ConAgra-owned Ro-Tel canned tomatoes, which are billed in ads as the perfect combo for dips.

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