Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +1.10% 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 haveadded the convenience to their weekly routines,” the report says.
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. /zigman2/quotes/206215053/composite KR +3.35% 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. /zigman2/quotes/207799045/composite TGT +0.28% 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.
And Albertsons Cos. Inc. /zigman2/quotes/209620932/composite ACI +3.65% 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 3.8% for the year to date while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.82% has gained 9.9% for the period.