- Beginning this week, Amazon (NASDAQ:AMZN) quietly began offering for sale whole-bean and ground coffee under its new Happy Belly label - putting it in competition with the likes of Starbucks (NASDAQ:SBUX).
- Also rolled out is Mama Bear baby food in two flavors.
- The WSJ one month ago reported Amazon as planning four brands of private-label foods, diapers, and cleaning supplies to be sold exclusively to Amazon Prime members.
- For the moment, Amazon is not necessarily positioning these items as the low-cost offering. Bags of Happy Belly cost $9.99 each - about $2 more than Starbucks' breakfast blend, but $3 less than Starbucks' French roast.
- In-house brands like these potentially carry higher profit margins, partly thanks to savings on brand development and marketing. Amazon may also be able to design the packaging to reduce shipping costs.