Amazon takes on supermarkets with launch of own-brand food range
Amazon is to expand its Elements business and start selling own-brand food, according to reports. The online retail giant launched its first private-label product, nappies, in December, but is now pushing into everyday food and drink products such as milk and cereal.
Amazon filed for trademark protections for more than two dozen items under its Elements brand earlier this month, including coffee, soup, pasta, water, vitamins, dog food, razors and cleaning products, the Wall Street Journal reported.
Amazon has already approached manufacturers with a view to agreeing a deal that will see third-parties produce the food but Amazon sell it in its own packaging. One of those companies is TreeHouse Foods, WSJ claimed, which reported sales of $3bn last year.
Last year Amazon launched its own-brand of nappies and baby wipes, promising that that other competitively priced, “premium” everyday consumer products would follow.
The Elements line is only available to members of Amazon’s Prime $99-a-year subscription club, with the lowest prices available for those who are also members of its Amazon Mom group.
Amazon highlighted that the Elements line would provide quality-conscious shoppers “an unprecedented level of information” on product origins and materials.
“The two things customers told us they want are premium products that meet their high standards, and access to information so they can make informed decisions,” said Sunny Jain, Amazon consumables vice-president, at the launch.
Amazon has been seeking to push shoppers into Prime, originally a subscription service for free shipping aimed at frequent buyers on its website.
A Prime subscription now gives members unlimited video and music streaming as Amazon takes on powerful media groups like Netflix and Spotify.
In some areas, Prime is now offering same-day delivery on groceries as well.