Amazon Offering New $5 Line of Groceries for Budget-Minded Shoppers

Amazon unveiled a new grocery brand named — wait for it — Amazon Grocery.

The e-commerce giant is merging two of its private-label grocery brands — Amazon Fresh and Happy Belly — into one budget-minded offering with simpler packaging, the company said on Wednesday.

Amazon Grocery offers more than 1,000 grocery items, most of which are priced at less than $5, the company said. “They don’t compromise on quality or taste,” Whole Foods CEO and president of Amazon’s grocery stores Jason Buechel said in a statement.

The brand is available now online and in-store in select US markets.

The company’s private-label brands have gained steam recently, with Amazon and Whole Foods shoppers buying 15% more products last year compared to 2023, the company said. The newest offering will complement Amazon’s other private-label grocery brands, Amazon Saver and 365 by Whole Foods.

US shoppers are increasingly turning to store brands for relief on their household budgets following several years of inflation, and retailers are responding by investing in raising the quality and variety of their offerings.

Hence, the use of phrasing like “private label” in place of “generic.”

The new brand comes as the e-commerce giant has been making a big push into grocery stores. It’s looking to snag share from stores like Walmart and Aldi, both of which are making moves in their own private label offerings.

Aldi last week revealed a packaging refresh that puts its name front and center on its store brand groceries, like “Red Bag Chicken,” to give shoppers a clearer sense of quality and value.

And Walmart said Wednesday it is removing synthetic dyes and other ingredients from its store-brand foods, including Great Value, the largest private label in the US.

Amazon also said the new Grocery brand features new items like cinnamon rolls, pizza dough, and refrigerated lemonade, and that new products will be coming out in the next few months.