Kraft Apologizes for Supply Shortages

Kraft Apologizes for Supply Shortages

( – The supply chain crisis has been one of the nastier after-effects of the COVID-19 pandemic. For months now, there have been major backlogs at ports and other key distribution facilities due to worker shortages, excess demand, and other factors related to the pandemic. This was a particularly pressing issue over the recent holiday season, as people struggled to get gift items and festive foodstuffs.

One company that couldn’t get a popular product to its customers in recent weeks has come up with a novel and generous way of offering its apologies.

Kraft Pays $20 to Say Sorry for Supply Issues

Food company Kraft is the distributor of the popular Philadelphia cream cheese brand. It’s a key ingredient in many recipes for cheesecake, which is a popular holiday season dessert. Cream cheese has become increasingly difficult to purchase in stores across the country due to COVID-related supply problems.

To apologize for the inconvenience consumers suffered because of this shortage, Kraft set up a special website from which affected customers could claim a $20 payment. Though the payouts are no longer available, 18,000 people were lucky enough to receive $20 from Kraft.

There are a number of reasons why Kraft is struggling to keep its beloved cream cheese on the shelves. One major contributory factor is a spike in demand for the product; the company says it had to distribute 35% more Philadelphia in 2021 than 2020. Another problem was a shortage of key supply chain equipment, such as cargo boxes, in some areas.

While the $20 payments are no longer available, there is good news for lovers of Philadelphia cream cheese. Responding to the surging popularity of the brand, Kraft Heinz executives have decided to invest more resources in producing it, moving its focus away from other products to ensure Philadelphia cream cheese stays on store shelves going forward.

The Supply Chain Crisis

This story is just one of hundreds when it comes to supply chain issues related to the pandemic. Companies of all kinds are encountering distribution problems right now, and there’s no guarantee things will get better soon.

Closely related to the supply chain crisis is the ongoing spike in energy costs. An especially hot summer in Asia, followed by a colder-than-normal winter in Europe, exacerbated this issue. This situation should right itself, but things may get worse before they get better.

Will other companies follow Kraft’s lead and make efforts like this one to apologize to their customer base for what’s going on?

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