Monday, April 4, 2016

Amazon is In Your Home, Your Hand, and Your Heart

Foodies get ready.  Amazon is about to change the retail landscape one again.  This time Amazon is positioning to become a major food and beverage competitor. Everyone knows Amazon Leading Wall Street analyst says Amazon will be a top 10 food and beverage player by 2019. 

Foodservice Solutions®, Grocerant Guru® as regular readers of the blog know says success does leave clues well Amazon is one of the very best at picking them up.  Bloomberg reports that Amazon will be a top 10 player in the approximately $795 billion U.S. food and beverage grocery market by 2019," according to a new note by analysts at Cowen & Company LLC, led by John Blackledge.

Blackledge staged "We are encouraged by Amazon’s growing footprint in this category, which we see as ripe for potential disruption given younger [demographics] increasingly purchasing food and beverage grocery items via digital channels."

Bloomberg reported that Amazon has been building its grocery offerings and competing with the likes of Walmart, Costco and Publix, and also has in its back pocket last-mile delivery services such as Amazon Prime, Prime Now, Prime Pantry and Amazon Fresh (restaurant food delivery)

For Amazon it’s all about seeking a last mile in delivery solution according to our Grocerant Guru®. Cowen & Company says that now is the perfect time for Amazon to take on the grocery industry, noting two reasons why the online retailer is "set to feast" on the massive U.S. food and beverage industry. 

“First, meet the millennials. According to Blackledge's research, this demographic represents “a massive portion of the online grocery market” and is entering its prime spending years, writes Bloomberg. "Our new proprietary survey data suggests millennials are set to drive [a] long-term shift of rising online [food and beverage] sales as 21% of the 25-34 age cohort are current online grocery shoppers vs. 11% of total U.S. consumers surveyed," 

Second, look to technology. Apps and websites providing online food and beverage purchases will continue to evolve and become more ubiquitous in the market. Cowen & Company says Amazon Prime dominates as an online platform: "Our survey data suggests Amazon Prime is the most-used platform (49% of online F&B customers said they use Prime), followed by Fresh (18%) and Prime Now (11%)," the team wrote.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® or for a Grocerant Scorecard visit,  Email:

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