Wednesday, 2 March 2016

Amazon. The New Fruit and Veg People.





Amazon, in a deal with UK retailer Morrisons, is going to sell fresh produce.

Under their 'Amazon Pantry' brand launched last year, subscribers (to Amazon Pantry and Prime) will be able to get fresh fruit/veg and some frozen products within, 60 minutes delivery.

It's a huge sector (probably £10 Billion pa) but instant/quick delivery of fresh produce is a real opportunity and, it may generate more volume in itself. Added to that, it's something else for Amazon to sell.

Hmmmm.

Ocado's shares are tumbling as a result now (-9%) because of the damage that this deal might do. Albeit Ocado has more than £1 billion in revenues but it too 'had' or has a deal with Morrisons as what they claimed was "exclusive" with "the contract preventing them from launching another service". Indeed.