Amazon Rolls Out 'Amazon Grocery' to Challenge Costco and Walmart Store Brands

Amazon (AMZN, Financials) launched a new private-label food brand. It combined its Amazon Fresh and Happy Belly lines into one brand named Amazon Grocery.

There will be more than 1,000 goods in the new brand's first collection. These will include commodities like milk, fruits and vegetables, meat, seafood, snacks, and pantry staples. Most of them will cost less than $5 and have at least four-star reviews from customers. You can buy the products online or in Amazon Fresh stores.

Amazon claimed that the new label is meant to go along with its other private-label brands, which include Amazon Saver for budget items and 365 by Whole Foods Market for natural and organic items.

Amazon Grocery will now be a direct competitor to Costco's Kirkland Signature and Walmart's Great Value, both of which have created significant consumer loyalty in the private-label food categories. Amazon wants to gain more price-conscious buyers by offering low pricing and a wide range of products at a time when inflation has made it hard for families to make ends meet.

The company stated it would add more products to the brand's lineup in the coming months.