Just days after announcing that its new 'more spreadable' version of Vegemite would be called iSnack 2.0, Kraft Foods has bowed to public opinion and says it will rethink the product's branding.

"We have been overwhelmed by the passion for Vegemite and the new product," Kraft's Australia/New Zealand head of corporate affairs, Simon Talbot, said in a statement.

"The new name has simply not resonated with consumers, particularly the modern technical aspects associated with it."

Kraft's plan to run a competition to decide the name of its new 'more spreadable' Vegemite, was initially welcomed by consumers.

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The original spread's name was found through a similar competition after it was invented by food technologist Cyril Percy Callister in 1922.

It quickly became a favourite in New Zealand and Australian households.

Almost 50,000 people submitted their name ideas to the recent competition but the iSnack moniker, brainchild of West Australian web designer Dean Robbins, did not receive quite the reception Robbins or Kraft had hoped for.

Consumers took to social networking sites in droves following the chosen name's announcement during last Saturday's AFL grand final. Many of their comments were scathing.

"iSnack 2.0? Seriously? What kind of name is that?" read one post on Twitter.

Media headlines such as "iSuck 2.0: Unhappy little Vegemites" and "People iHate Vegemite iSnack," echoed the public sentiment.

An overwhelming 94 per cent of respondents to a poll on nzherald.co.nz also indicated they disliked the name.

Allegations the new name was a marketing stunt on Kraft's part were quickly quashed by Talbot but the disgruntled web chatter continued.

In deciding to drop the iSnack name Talbot said Kraft were "proud custodians of Vegemite, and have always been aware that it is the people's brand and a national icon".

A new competition is now being arranged which will allow consumers in New Zealand and Australia to vote for a new name through an "independent popularity vote" - the details of which will be released within the next two days, he said.

Reaction to the news was quickest on the social networking sites where unhappy consumers first made their thoughts known.

"Mmm, somebody pass me the spread formerly known as iSnack 2.0," wrote T_Pot on Twitter.

"We won, we won, Kraft caves on isnack 2.0," posted another.

Many people hoping to bag a collector's item said they would be racing out to buy the product before its name changes again.

But it may not be as rare as they imagine.

Talbot said Kraft Foods' storeroom currently has thousands of jars of iSnack 2.0-branded Vegemite and it will continue to be sold in supermarkets until a new name is decided upon.