While they would see success with one of Frey’s creations, Liederkranz cheese, they still ultimately fell into financial problems resulting in the foreclosure of the property.

It was during this time that Frey began taking broken pieces of cheese back to his house where he spent two years working on a process to make use of them.

[10] In 2002, the FDA issued a warning letter to Kraft that Velveeta was being sold with packaging that falsely described it as a "pasteurized process cheese spread",[11] The product listed milk protein concentrate (MPC) in its ingredients, which meant it no longer fit any of the FDA's cheese-related definitions.

Kraft Foods has marketed Velveeta as an ingredient for chile con queso and grilled cheese sandwiches.

[15] In the 1980s, Velveeta used the advertising jingle, "Colby, Swiss and Cheddar, blended all together" in its US television commercials to explain its taste and texture because real cheese was used in the product at that time.