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Amazon.com Inc.
AMZN,
said Monday that it has launched a new private-label food brand, Aplenty, that will include snack items like pita chips, crackers and mini cookies, as well as condiments, frozen foods and pantry staples.
Amazon’s newest label comes after a pandemic year in which consumers cooked and snacked more at home.
Overall, online grocery sales also soared 52% in 2020, according to JLL’s Grocery Tracker 2021 report. JLL provides market research, retail business insight and retail property management services.
“It’s unlikely people will abandon online shopping even when a vaccine is widespread—with improvements to efficiency and cost, many customers have
added the convenience to their weekly routines,” the report says.
See: Smoothies and salads: Kroger says these 4 items account for 28% of its produce sales
Still, the report says that widespread COVID-19 vaccinations will drive increased restaurant dining and could impact the grocery business.
But food-at-home will always generate sales, and grocery retailers are working to continue to drive demand, with private labels a key part of that strategy.
Kroger Co.
KR,
says its private labels were a $26 billion business in 2020. A pilot for its Home Chef ready-to-eat meals is coming soon.
Target Corp.
TGT,
is also launching another food brand in April, Favorite Day, that will focus on snacking.
In its most recent earnings, Target said it has 10 owned brands with $1 billion in sales.
Also: Target to launch another food and beverage brand in April, Favorite Day
Read: ‘Plexiglass will stay up for a while’: Shoppers remain anxious about COVID but head back to stores
And Albertsons Cos. Inc.
ACI,
announced in late March that it has partnered with Google for a series of technologies that will make online grocery shopping easier and more convenient.
Amazon stock is up 3.3% for the year to date while the S&P 500 index
SPX,
has gained 9.8% for the period.
