Amazon is expanding its private label offerings--this time, in the grocery sector.
The product line, dubbed Aplenty, will launch at Amazon Fresh grocery stores, offering products across categories such as confections, salty snacks, cookies/crackers, frozen foods, condiments and sauces, seasonings, baking mixes and pantry staples, Progressive Grocer reported. Aplenty products are already available on Amazon.com and will be phased into Amazon Fresh stores this year.
Amazon Fresh is the grocery delivery service from the e-commerce giant, but Amazon has started to roll out brick-and-mortar grocery stores under the brand. The brand is not an off-shoot of Whole Foods, which is also owned by Amazon, and it offers other private labels owned by the company, including Fresh and Cursive brands.
Amazon’s continued expansion into private label reflects growth in the retail strategy across the sector. The move allows retailers to have complete control over cost and and quality of their products, as well as an ability to quickly respond to shopper tastes and preferences and build customer loyalty. During the Covid-19 pandemic, private labels took off in popularity, though the trend was already growing prior to 2020.
Target recently expanded its private label offerings into more sweet and snacks, targeting what consumers are buying more often. And Kroger is intent on growing its $26.2 billion private label business, according to Progressive Grocer.
Private labels are already taking market share from big brands, according to an IRI report that revealed large manufacturers lost out on $12.1 billion in sales over smaller brands as a result of channel shifts, supply constraints and category shifts.
As Amazon expands its footprint in the grocery sector, it’s possible more private labels will emerge from the e-commerce retailer. The company also has private apparel and electronics brands.
“Each product is developed to the highest standards with recipes rooted in quality ingredients to deliver great taste without artificial flavors, synthetic colors, or high fructose corn syrup,” reads a statement from Amazon. “To guarantee quality, every product is rigorously taste-tested to exceed our customers’ expectations, and we stand by this promise with our Delicious Guarantee: if you don’t love it, we’ll refund you the purchase price.”
See the full story at Progressive Grocer.