The makers of Vegemite have bowed to intense pressure from the public and canned their new iSnack 2.0 product branding.
The new name has been ridiculed Australia-wide since it was revealed last Saturday during the AFL grand final.
Kraft chose the name iSnack 2.0 from over 48,000 entries in Australia and New Zealand in a competition that was launched in July this year.
But today, Kraft has admitted that while Aussies are buying the new product, they just aren't buying the new name.
Head of Corporate Affairs Simon Talbot said in a statement they are going to give the public another shot at coming up with a better name.
"The new name has simply not resonated with Australians. Particularly the modern technical aspects associated with it," he said.
"Our Kraft Foods storeroom currently has thousands of jars of the iSnack2.0 named Vegemite. This product will be distributed around Australia, and will continue to be sold in supermarkets for months to come - until Australia decides upon a new name."
ABC News Online readers mocked the new name earlier this week, with one person saying they should have just called it "Vegeshite".
Over three million jars have been sold so far, but they may soon be destined for the pool room once a new name everyone likes is decided on.
Mr Talbot says details of the new competition will be announced on October 2.
"Australians and New Zealanders will shortly be invited to help us make a choice," he said.
"Please bear with us for the next 48 hours as we finalise how Australians and New Zealanders can decide the new name through an independent popularity vote. "
He says the new Vegemite name has "never been about initiating a media publicity stunt."
"We are proud custodians of Vegemite, and have always been aware that it is the people's brand and a national icon," he said.