Transcript for Amazon launches new house food brand, Aplenty
The grocery wars are heating up with online grocery sales jumping 54% last year. Amazon is now aiming to become an even bigger player. Becky Worley joins us to break down what that means for you. Good morning, Becky. Reporter: Good morning, robin. House brands are the way grocery stores skip the middleman and sell their own products. With online grocery sales skyrocketing, Amazon has its own new house brand, it's called aplenty and with all things Amazon there will be a plenty of competition for other foodmakers and maybe an opportunity for us to save. This morning, Amazon launching aplenty, a food and snack brand that will eventually include hundreds of products that will sell online and in their Amazon retail stores. House brands like Kirkland from Costco or archer farms from target traditionally offer customers an opportunity for savings. Recently I compared Costco's Kirkland brand of walnuts the 22 cents an ounce to my local grocery store where they cost almost three times that at 62 cents an ounce. By using the house brands a consumer can save 10% to 20%. Reporter: While some listed on the website like crackers that cost $2.49, the only thing we could use to compare apples to apples with other house brands was dijon mustard. Walmart and target's were cheapest at cents an ounce, wegmans, 15 cent, safeway, 21 cents and Amazon's aplenty brand came in at 28 cents an ounce. "Good morning America" reached tout to Amazon and say each product is developed to the highest standards free of things that don't enhance taste or quality like artificial flavor, synthetic colors and high fructose corn syrup and go on to say they'll refund any products you're not happy with. Given their pricing on other house branded items like their Amazon basics cables and batteries, grocery analysts expect them to become competitive. Amazon is the goliath so the big danger is when you have a big company come in like this and so what happens is that competition goes away. And so when competition goes away, then you're able to raise prices. Reporter: Launching in the snack category is no accident. Snack sales are up double digits. So, robin, I'm just going to try these Amazon branded cookies now just to make sure they're okay. Yeah, good reporting. Got to follow through. Thanks so much. Let's check in again with rob.
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