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Key Takeaways
- Amazon rolled its private food labels into a new brand, Amazon Grocery, and said it will continue to expand its offerings.
- The move comes as other food companies try to reach a rising number of consumers shopping store brands.
Amazon is priming its grocery lineup for the private-label craze as shoppers look for more ways to save on food.
Amazon (AMZN) rebranded its private food labels Wednesday after seeing a 15% jump in the number of company-branded products sold. The new brand, Amazon Grocery, pulls in items sold under the Amazon Fresh and Happy Belly labels, and adds new items, such as cinnamon rolls and lemonade. The brand is sold online and at Amazon Fresh markets, with most items priced at under $5, a press release said.
“We’re simplifying how customers discover and shop our extensive private label food selection, while maintaining the quality and value our customers expect and deserve,” Jason Buechel, vice president of Amazon Worldwide Grocery Stores, said in a statement. The news follows the company’s announcement of a beefed-up move into grocery delivery.
Why This News Matters to Consumers
Big retailers like Walmart have said they’re aware that many consumers’ finances are stretched, and looking to help them save. Some have acknowledged prices will rise to help compensate for the cost of tariffs. Store-brand goods are one tool for both helping companies sustain margins and shoppers to sustain budgets.
As consumers try to save, many are shifting to private-label brands, Bank of America said this summer. So-called store brands cost an average of $2 less than alternatives, the bank said.
Amazon isn’t the only food company catering to store-brand shoppers. Albertsons Cos. (ACI) launched a line of marinated meats in May, and said it may further expand its private label. Casey’s General Stores (CASY) also discussed plans to beef up its private label assortment this summer. Walmart (WMT) today said it wants to remove synthetic dyes from all its private-label products.
Aldi, a grocery chain that almost exclusively stocks private labels, is revamping its branding and touting on packaging that products are part of the store brand. Many items will now be sold with an “Aldi” or “an Aldi Original” tagline, the company said last week.
