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· Posted on
February 21, 2024

Kraft spins the cream cheese shortage into free dessert so cheesecake lovers don't sour on them

Kraft's the company behind Toblerone, Milka and, of course, Philadelphia Cream Cheese 🤤.

What's the key learning?

  • Thanks to labour shortages and port congestion in the US, cream cheese is in short supply
  • So, Kraft's giving 18,000 people $20 to spend on any dessert they like
  • When brands foresee potential brand damage, they'll do anything to turn it into a positive experience.

Background: Kraft Foods is the fifth-largest food and beverage company in the world. Woahh.

What happened: This crew own Toblerone, Milka and, of course, Philadelphia Cream Cheese 🤤. And unfortunately for bagel lovers (aka everyone), cream cheese is currently in short supply, thanks to labour shortages and port congestion in the US.

What else: Now, Kraft will give 18,000 people $20 to spend on any dessert they like. That way, people who can't get their hands on the delicious creamy goodness can get another tasty treat bank-rolled by Kraft.

So what's the key learning?

💡It takes companies years and years to build a trustworthy brand, but sadly, it can be lost overnight. So, when brands foresee potential brand damage, they'll do anything to turn it into a positive experience.

💡Here's the thing: it costs five times more in marketing dollars to gain a new customer, than it does to serve an existing, loyal customer. On top of that, repeat customers spend 31% more with a business than a brand new customer.

💡So even though customers can't get their hands on Kraft cheese now, because Kraft turned a negative situation into a positive experience, customers will be more inclined to come back to Kraft in the future. The best defence is a good offence.

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