Dive Brief:

• Amazon has introduced a value-focused private label food brand that spans a broad range of common grocery items, the retailer announced Wednesday.
• The brand, known as Amazon Grocery, replaces the company’s Amazon Fresh and Happy Belly names and will also include newly introduced products. Most products under the new line will cost $5 or less.
• The rollout of Amazon Grocery reflects an effort by Amazon to streamline its private label strategy by consolidating its selection under fewer brands.

Dive Insight:

Amazon characterized the launch of the new grocery brand as a way to make it easier for shoppers to navigate its private label food offerings while also spotlighting the company’s goal of attracting shoppers intent on saving money.

Amazon Grocery encompasses more than 1,000 items including dairy foods, fresh produce, snacks, meat and seafood. Products under the brand are available online and in Amazon Fresh supermarkets.

Amazon said that it has added a number of products to its assortment that will carry the new brand, including fresh cinnamon rolls, refrigerated lemonade and pizza dough. The company said it intends to add items such as frozen pasta meals and pie fillings and expand the variety of deli meats, frozen vegetables and canned beans it offers.

The retailer touted new packaging for Amazon Grocery products that clearly displays nutrition information, uses less plastic and includes type designed to be easy to read.

“With Amazon Grocery, we’re simplifying how customers discover and shop our extensive private label food selection while maintaining the quality and value our customers expect and deserve,” Jason Buechel, vice president of Amazon Worldwide Grocery Stores, said in a statement.

In addition to Amazon Grocery, Amazon sells products under house brands including 365 by Whole Foods Market, which includes natural and organic products, and the value-oriented Amazon Saver line.

Amazon’s private label grocery business has been picking up speed. Shoppers bought 15% more products under the company’s house brands last year than they did in 2023 on the company’s website and at Amazon Fresh and Whole Foods, according to the announcement.

Amazon has taken several steps this year to strengthen its grocery business, including its announcement in August that it would offer same-day delivery of perishable foods to thousands of communities across the country by the end of 2025. Amazon has also sought to draw customers to its Amazon Fresh stores by calling attention to the chain’s focus on low prices.

In June, Amazon said it was bringing Whole Foods and the rest of its grocery operations closer together, an initiative that followed its decision in January to appoint Buechel — who also serves as CEO of Amazon-owned Whole Foods Market — to his current role overseeing all of the company’s grocery retail operations.