Kraft Velveeta Shortage Threatens Super Bowl Recipes, But Will it Boost KRFT Stock?

by Burke Speaker | January 8, 2014 9:00 am

Kraft Velveeta Shortage Threatens Super Bowl Recipes, But Will it Boost KRFT Stock?

Velveeta Cheese — the $500 million brand for Kraft (KRFT[1]) — is in short supply, and is threatening to ruin Super Bowl recipes the nation over.

Kraft offered so real reason for the shortage — which would explain why you may find no Velveeta on shelves as you begin stocking up for your Super Bowl parties.

“This is really a short-term situation that is more noticeable during our current period of increased seasonal demand,” a Kraft spokesperson said in a media statement.

The “seasonal” demand should not refer to Christmas or Thanksgiving, unless of course Americans have suddenly to smother their turkeys in that delicious Velveeta cheese that’s usually reserved for dip.

The demand is more likely the recent wave of college bowl games or New Years Eve parties — but even that has consumers confused for this is the first reported time that the faux cheese has been in such short supply.

“It is possible consumers may not be able to find some Velveeta products on store shelves over the next couple of week,” says Kraft in the release. But, the statement notes, “we have not heard many complaints from consumers so far.”

The shortage that’s being widely reported by the media may give KRFT stock a boost as consumers rush to purchase the cheesy goodness.

KRFT stock was up 1% in the past day, though unless KRFT pushes hard to restock shelves, the move could end up hurting Kraft rather than helping.

The shortage news is the first real national PR for the Kraft brand in years — and if spun right, the company could re-emerge in the eyes of both consumers and investors.

KRFT stock is up 18% from this time last year.

READ: Velveeta Substitute: Use this recipe to create your own Velveeta Cheese[2]

Endnotes:
  1. KRFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KRFT
  2. READ: Velveeta Substitute: Use this recipe to create your own Velveeta Cheese: http://investorplace.com/2014/01/velveeta-substitute-recipe-kraft-krft-stock/

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