E-commerce giant Amazon has announced its plan to offer own-brand food produce as an extension to its Elements business. The customer- inspired Elements label, which currently sells “premium” products for infants such as diapers and wipes, is set to expand its product line to include everyday food and drink produce like milk, cereal and baby food. It will also offer household cleaning products that have been in demand amongst those familiar with the label.
The global etailer filed for trademark protection for more than two dozen items that are to be released under the elements brand. These also include coffee, soup, pasta, water, vitamins, dog food and razors, according to The Wall Street Journal.
Amazon has approached manufacturers for the new range and has agreed to a deal that involves third-parties producing the food whilst Amazon will sell it in its own packaging. One of these parties will be TreeHouse Foods.
On the launch of the Elements label, Amazon ensured consumers that the line would provide “an unprecedented level of information” on the material used and the products origins. The slogan of the brand will read: “Every pack has a story”.
“The two things customers told us they want are premium products that meet their high standards, and access to information so they can make informed decisions,” said Sunny Jain, Amazon Consumables Vice-president, at the launch.
Eddie Yoon, a principal at brand consultancy The Cambridge Group commented, “It makes a lot of sense for any retailer to get into private label. Private label has a lot of room to grow in terms of sales and can attract a new value-focused customer.”
Amazon, which reported $241m in losses last year, has been eager to increase food sales online, including its Fresh grocery delivery and Prime Pantry services.
The Elements line is currently available exclusively to Prime customers. Amazon anticipates that the expansion of the line to common household products will encourage more consumers to sign up.