Friday, May 29, 2015

Amazon Launches Private Label Food

Amazon looks more and more like a traditional retailer.  Some rumors previously mentioned opening physical brick & mortar stores, something I think Amazon will do in large numbers eventually, or try to do.  Today is private label food to help their margins vs. the large national brand CPGs (big food).

http://www.usatoday.com/story/money/2015/05/28/amazon-plans-to-expand-private-label-food-products/28088855/

Here is a snippet from that piece:

Amazon is expanding the grocery business by broadening its private-label brand, Elements, into food items, according to a report by The Wall Street Journal.

In December, Amazon launched the Elements brand by selling baby diaper wipes, which are sourced from a vendor, to Amazon Prime members. By paying $99 a year, Prime customers get expedited shipping and access to streamed movies and TV shows.

At the time, company watchers speculated that the brand will be used to launch other products, mirroring the private-label strategy used by other large retailers.

Happy Reading,

J.W. Gant

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