Amazon Launches New Grocery Brand

Amazon Launches Amazon Grocery: A New Private Label Brand

Amazon revealed the launch of Amazon Grocery on Wednesday, a new private-label brand designed to provide a wide variety of grocery products. A significant portion of these items will be available for under $5.

Range of Products Offered

The Amazon Grocery brand encompasses a diverse selection, including staples like milk and olive oil. It also features fresh produce, meat, and seafood options for consumers.

These grocery items from Amazon Fresh will be accessible both online and within Amazon Fresh stores.

Consolidation of Existing Brands

According to Amazon, the new label effectively merges the Amazon Fresh and Happy Belly lines. This consolidation creates a single, comprehensive collection of grocery essentials.

Focus on Affordability

“Recognizing the current economic climate and heightened consumer price sensitivity, Amazon Grocery provides over 1,000 high-quality grocery items across all categories,” stated Jason Buechel, vice president of Amazon Worldwide Grocery Stores and CEO of Whole Foods Market.

He further explained that the brand maintains quality and taste while offering low, competitive prices to help customers maximize their grocery budgets.

Competition in the Private Label Market

The Amazon Grocery line is positioned to compete directly with established private label brands. Examples include Walmart’s Great Value and Target’s Favorite Day.

New Items and Future Expansion

Amazon highlights several new additions to the Amazon Grocery line. These include fresh bakery cinnamon rolls, refrigerated pizza dough, and bottled spring water.

In the coming months, the company plans to introduce frozen pasta meals, pie fillings, granola, sliced loaf cakes, and an expanded selection of deli meats.

Building on Previous Initiatives

This launch isn’t Amazon’s first foray into budget-friendly branding. Last year, the company introduced the “Amazon Saver” brand, offering affordable staples like canned goods and condiments.

Growth of Private Label Sales

Amazon reports continued growth in its private-label brands. Customer purchases of these products have increased by 15% in 2024 compared to the previous year, across Amazon.com, Whole Foods Market, and Amazon Fresh.

Expansion of Same-Day Delivery

Last month, Amazon expanded its Same-Day Delivery service to include perishable food items in 1,000 cities across the U.S.

This allows customers to order fresh groceries, including produce, dairy, meat, and seafood, alongside other products like household goods and electronics.