Amazon to Add Food Products to Its Fledging Line Up Of House Labels

Amazon

Amazon to Add Food Products to Its Fledging Line Up Of House Labels

The e-commerce leader- Amazon.com is aiming to add food, cereal, and baby products to its fledging line up of house label. The company’s strategic move seeks to capitalize on grocery delivery services and customers’ evolving acceptance of store brands.

Amazon is getting ready to take off its flight with the likes of Target and Wal-Mart deeper into the grocery passageway, and Costco Wholesale. The online retailer planned to increase its private labels lineup into groceries, such as cereal, milk, and baby food products, as revealed by a source, on Thursday.

A source revealed that early in May, Amazon filed for trademark protection for at least two dozen categories under its existing brand umbrella, including soup, coffee, pasta, and household products, such as cleaning products, and razor blades.

According to a source, Amazon has approached a few private-label food manufactures for partnering, including TreeHouse Foods. The company venturing into private-label grocery comes, as food is becoming major business for major food retailers. The company anticipates that groceries can bring more amounts of profit margins, despite of having lower retail prices a few retailers charge, as the company can hoard on the marketing costs.

The new products would be an expansion of Amazon’s Elements brands that launched in December, with two products- baby wipes and diapers, the second of which shut done in the month of Jan. after lukewarm customer response. Elements products will only be available to Amazon Prime Members, who pay a $99 membership charge, annually.

As these are food products in which Amazon could be question regarding their quality of manufacturing process. But, Amazon Elements products disclose information regarding food ingredients, as well as where and when the products were manufactured and processed. Unlike other things, Amazon Prime provides unlimited same-day delivery services in targeted markets and two-day shipping- for a $99 fee-annually.

Unlike Amazon’s other businesses, this would be its first trial at selling its own line of food. But, it’s still vague why Amazon is making a move into this category product. According to a source, it revealed that Amazon’s strategic business move will help the company to increase its profit margins, as private label products cost less for marketing and its distribution.

Last year, Amazon lost $241 million on $89 billion. Amazon’s instant move to sell private labeled products, will allow the company to beat experienced competitors that have plans to enhance their own business’s brand.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Visa takes over Swedish fintech Tink in €1.8bn deal

Visa takes over Swedish fintech Tink in €1.8bn deal

: Visa is committed to perform better in the field of open banking sector by combining its networks and Tink’s modern technologies.
8 hours ago
BP Invests $7 million in Electric Vehicle Charging Technologies

BP Invests $7 million in Electric Vehicle Charging Technologies

Investment in IoTecha is linked with BP’s intention to produce over 70,000 public EV charging points globally by 2030
9 hours ago
Elon Musk’s Starlink satellite internet set to cover the globe soon

Elon Musk’s Starlink satellite internet set to cover the globe soon

Starlink, the satellite internet unit of Elon Musk’s SpaceX, will most likely be able to provide global coverage by September, according to the company’s president Gwynne S
1 day ago
At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

Krispy Kreme, the popular donut chain, aims raise roughly $4 billion as it makes one of the biggest IPO debuts at the NYSE.
1 day ago
Panasonic hopes Blue Yonder acquisition will improve its software woes

Panasonic hopes Blue Yonder acquisition will improve its software woes

Most Japanese major companies, which at one time were leaders in consumer electronics, are struggling to find their feet in a world that has moved to digital software. Electronics
2 days ago
Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

The Ikea and Rockefeller foundations are jointly launching a $10 billion fund to promote small-scale renewable power projects in developing nations. Both
3 days ago