News & Media

Amazon's new private label
August 8, 2017
Source: PLMA e-Scanner
It looks like Amazon is about to become a serious private label grocery retailer. That’s the judgment of two Wall Street analysts evaluating the online giant’s bid to acquire Whole Foods Market for $13.7 billion. “The possibility that Amazon will begin to use the well-known 365 private label brand from the Whole Foods Market as a lynchpin of its food grocery offering is important,” write Alexia Howard and Matt Romariz of Bernstein. “Clearly many of us had thought that any ‘Amazon’ branded foods would be shunned by consumers. But by acquiring Whole Foods, the 365 brand becomes instantly available as part of Amazon’s online offering. This brand is highly credible with consumers–indeed we had previously asked Whole Foods if they might consider selling the brand more broadly into other retail channels. “The idea that a juggernaut company in the online retail space is clearly staking its turf in the private label world is game-changing,” the analysts concluded.