Amazon's new grocery brand offers essentials for under $5
What's the story
Amazon has launched a new private-label brand, Amazon Grocery, to provide affordable grocery items. The brand offers a wide range of products including milk, olive oil, fresh produce, meat and seafood. Most of the items under this new label are priced under $5. The launch is part of Amazon's strategy to help customers save on their grocery expenses during these price-sensitive times.
Brand consolidation
Amazon Grocery combines two existing lines
The new Amazon Grocery brand is a combination of two existing lines, Amazon Fresh and Happy Belly. The move is aimed at providing customers with a one-stop shop for all their grocery needs. "During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don't compromise on quality or taste," said Jason Buechel, VP of Amazon Worldwide Grocery Stores and CEO at Whole Foods Market.
Market competition
Competing with other retail giants
The new Amazon Grocery brand will compete with other private-label brands such as Walmart's Great Value and Target's Favorite Day. The line includes new items like fresh bakery cinnamon rolls, refrigerated pizza dough, bottled spring water, and more. In the coming months, Amazon plans to introduce frozen pasta meals, pie fillings, granola, sliced loaf cakes as well as more deli meat options under this label.
Brand history
A history of budget-friendly brands
This isn't the first time Amazon has launched a price-conscious brand. Last year, the company introduced "Amazon Saver" to provide budget-friendly staples like canned goods and condiments at low prices. Despite the economic challenges, Amazon's private-label brands have been gaining traction with customers buying 15% more private-brand products in 2024 compared to last year across Amazon.com, Whole Foods Market, and Amazon Fresh.