In a statement this afternoon, the company said it had listened to the public and would go back to the drawing board.
An announcement about another name will be made on Friday.
"We have been overwhelmed by the passion for Vegemite and the new product," said Kraft Foods Australia/New Zealand head of corporate affairs, Simon Talbot.
"The new name has simply not resonated with Australians. Particularly the modern technical aspects associated with it."
iSnack 2.0 was chosen from 48,000 suggestions made as part of a public naming competition run by the company.
Read more at BrisbaneTimes.com.au
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