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Amazon launches store brand for food products

That Amazon is betting on the food sector is increasingly clear. The first step was made when it launched its Amazon Prime Now delivery service in Madrid. Then it expanded it to Barcelona and a few weeks ago to Valencia. It has partnered with supermarket chains such as Dia, has just opened its first checkout-free supermarket in the US and is now launching its own food brand in Spain.

Sources from the company, consulted by the Spanish newspaper El Mundo, stated that the group has not issued a statement on the matter and they merely point out that the company has "several brands for different product categories."

This refers to Amazon Basics, which is like a store brand for the electronic e-commerce giant, and which mainly includes technology and home products. Now it has two more food brands: Happy Belly and Wickedly Prime.

These are brands "that are used for specific products" and which have not been on the market for a long time. For instance, seeds and nuts (almonds, cashews, nuts, dehydrated fruits...) are sold under the Happy Belly label, while Wickedly Prime is a brand used for soups, snacks, nuts, teas and sweet creams.

According to the latest report by Kantar Worldpanel, 56% of the customers of the leading retailers (Mercadona, Carrefour, Dia, Eroski, Lidl, Auchan and the regional supermarkets) have already bought consumer products (food, drinks and drugstore products) on the web of the North American group last year.

The sector, in fact, is already on guard against the competition that Amazon may represent, although its foray into the food sector is still at a very early stage. Its strength, however, could help boost online food purchases; a channel that still only has a 1.9% market share, if we don't take fresh products into account.


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