Did you know about the bagel tax? In many states like New York, home of the bagel and schmear, bagels and cream cheese are subject to a prepared food tax. This ridiculous tax only applies once a bagel is sliced and schmeared, so we found a bagel shaped loophole for everyone to stick it to the tax man. GUT with Philadelphia Cream Cheese and Seinfeld's favorite bagel chain, H&H Bagels, invented and debuted The Tax-Free Bagel, a classic New York bagel, pre-stuffed with Philadelphia Cream Cheese, making it exempt from the unsavory bagel tax. OOH, PR and social directed people to this delicious loophole, which was available the week leading up to, and on Tax Day.
“In today’s landscape, people are juggling enough hurdles, and having to pay an extra tax to enjoy their favorite bagel with Philly cream cheese should simply not be one of them. A bagel with Philly cream cheese is an experience that so many know and love, so in partnership with H&H bagels, we wanted to provide a delicious solution to this silly tax in a way that kept the enjoyment of our brand at its core, literally.” – Keenan White, Senior Brand Manager, Philadelphia at Kraft Heinz Company
"When we found out that New Yorkers were getting taxed on sliced bagels, we knew that Philadelphia Cream Cheese, a brand literally at the center of New York bagels, had to do something about it, because taxing a beloved NY food staple is just ridiculous. So, we found a bagel-shaped loophole: If sliced bagels are being taxed, then we need to have a Philadelphia Cream Cheese pre-stuffed bagel to dodge the tax altogether this tax season." – Ricardo Casal, CCO & Partner, GUT