Latest news with #grocery business
CNN
3 days ago
- Business
- CNN
Amazon just made it easier to order fresh food
Amazon is rolling out same-day delivery of fresh food to more than 1,000 cities, a sign that it's finally finding success with its grocery business after years of shifting strategies. In a move that Amazon describes in a press release as one of its 'most significant grocery expansions,' customers can now order perishable food items, including dairy, meat and seafood, alongside their typical Amazon orders and get them on the same day. Amazon has rolled out – and rolled back – many different grocery options, with various degrees of success. It has partnered with local grocery stores, including its own brands like Amazon Fresh and Whole Foods, to deliver groceries to customers. But those items took customers into different online stores with separate checkouts and delivery fees that sometimes left shopper confused. Now, in the locations that Amazon is making the service available, customers will be able to check out fresh food and other items from the same cart. Same-day delivery will be free for Prime members on orders over $25 in most cities, or has a $2.99 fee if the order doesn't meet that minimum. Customers without a Prime subscription can use the service for a $12.99 fee without an order minimum. Availability will expand to 2,300 cities by year's end and to additional places in 2026. The service was trialed last year in Phoenix, Arizona; Orlando, Florida and Kansas City, Missouri. Amazon said that customers 'embraced the convenience,' with many of them being first time grocery customers that 'return to shop twice as often' compared to those who didn't purchase perishable food items. The company said that the service complements its existing grocery delivery offerings, including Amazon Fresh, which offers faster deliveries with a higher minimum payment, and Whole Foods. CEO Andy Jassy has said he's 'very bullish' about Amazon's grocery business, which has gone through multiple directions since the 2017 acquisition of Whole Foods. Attempts at opening physical stores have struggled, as has Amazon's attempts at operating a separate app for grocery delivery. Amazon had at one point offered Prime members free same-day delivery from Whole Foods, but the company now charges $9.95 for all Whole Foods deliveries. But Amazon has found success with delivery under its core Amazon app, with the company generating $100 billion in grocery sales last year (excluding Whole Foods and Fresh). Jassy mentioned on the July 31 earnings call that the 'very successful' fresh food pilot saw 'strong customer adoption' with about 20% of customers using the service multiple times within the first month. 'Our prices continue to be low and sharp for customers,' he added. 'It's one of the reasons our everyday essentials growth outpaced the rest of the business globally and represented one out of every three units sold.'
CNN
3 days ago
- Business
- CNN
Amazon just made it easier to order fresh food
Amazon is rolling out same-day delivery of fresh food to more than 1,000 cities, a sign that it's finally finding success with its grocery business after years of shifting strategies. In a move that Amazon describes in a press release as one of its 'most significant grocery expansions,' customers can now order perishable food items, including dairy, meat and seafood, alongside their typical Amazon orders and get them on the same day. Amazon has rolled out – and rolled back – many different grocery options, with various degrees of success. It has partnered with local grocery stores, including its own brands like Amazon Fresh and Whole Foods, to deliver groceries to customers. But those items took customers into different online stores with separate checkouts and delivery fees that sometimes left shopper confused. Now, in the locations that Amazon is making the service available, customers will be able to check out fresh food and other items from the same cart. Same-day delivery will be free for Prime members on orders over $25 in most cities, or has a $2.99 fee if the order doesn't meet that minimum. Customers without a Prime subscription can use the service for a $12.99 fee without an order minimum. Availability will expand to 2,300 cities by year's end and to additional places in 2026. The service was trialed last year in Phoenix, Arizona; Orlando, Florida and Kansas City, Missouri. Amazon said that customers 'embraced the convenience,' with many of them being first time grocery customers that 'return to shop twice as often' compared to those who didn't purchase perishable food items. The company said that the service complements its existing grocery delivery offerings, including Amazon Fresh, which offers faster deliveries with a higher minimum payment, and Whole Foods. CEO Andy Jassy has said he's 'very bullish' about Amazon's grocery business, which has gone through multiple directions since the 2017 acquisition of Whole Foods. Attempts at opening physical stores have struggled, as has Amazon's attempts at operating a separate app for grocery delivery. Amazon had at one point offered Prime members free same-day delivery from Whole Foods, but the company now charges $9.95 for all Whole Foods deliveries. But Amazon has found success with delivery under its core Amazon app, with the company generating $100 billion in grocery sales last year (excluding Whole Foods and Fresh). Jassy mentioned on the July 31 earnings call that the 'very successful' fresh food pilot saw 'strong customer adoption' with about 20% of customers using the service multiple times within the first month. 'Our prices continue to be low and sharp for customers,' he added. 'It's one of the reasons our everyday essentials growth outpaced the rest of the business globally and represented one out of every three units sold.'
Fast Company
14-07-2025
- Business
- Fast Company
Kraft Heinz could be splitting up in a deal worth nearly $20 billion
Kraft Heinz is studying a potential spin off of a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own, a source familiar with the matter said on Friday. However, the structure of the deal could change and there is no guarantee Kraft Heinz would move forward with any such deal, the source said. News of the potential move is the second effort this week by a storied U.S. company looking to shore up shareholder value as shoppers ditch their pricey products in an uncertain economy. Earlier this week, cereal maker WK Kellogg agreed to a $3.1 billion buyout deal from Italy's Ferrero. The Wall Street Journal first reported the development earlier in the day. According to the report, a split, which would leave the company with products such as its namesake Heinz ketchup and Dijon mustard brand Grey Poupon, could be finalized in the coming weeks. 'As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value,' a company spokesperson said. Its shares closed up 2.5%. The company currently has a market value of $31.33 billion. Kraft Heinz was formed in 2015 after Warren Buffett's Berkshire Hathaway and Brazilian private equity firm 3G Capital combined the former Kraft Foods with H.J. Heinz, which they bought in 2013. But it has been a challenging investment for Berkshire. Inflationary pressures and a shift in focus toward fresher, less processed food have hurt demand for Kraft Heinz's lunch combos and other products. It lowered annual forecasts and reported a dour quarter in April, hurt by muted consumer spending. Kraft Heinz also said last month it would stop the launch of new products with artificial colors in the U.S. after Health Secretary Robert F. Kennedy Jr. outlined plans to remove synthetic food dyes from the U.S. food supply to address chronic diseases and conditions. 'KHC spinning off its grocery business echoes the 2023 Kellogg spinoff in which the company spun off its cereal business, which had been in volumetric decline for some time,' said Connor Rattigan, analyst at Consumer Edge. 'As CPGs (consumer packaged goods makers) contend with both changing consumer preferences and a challenging consumer environment, other CPGs may look to M&A and or similar corporate actions to improve their category exposures and improve their top-line trajectory,' Rattigan said.
Yahoo
13-07-2025
- Business
- Yahoo
Kraft Heinz explores grocery business spinoff worth up to $20 billion, source says
(Reuters) -Kraft Heinz is studying a potential spin off of a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own, a source familiar with the matter said on Friday. However, the structure of the deal could change and there is no guarantee Kraft Heinz would move forward with any such deal, the source said. News of the potential move is the second effort this week by a storied U.S. company looking to shore up shareholder value as shoppers ditch their pricey products in an uncertain economy. Earlier this week, cereal maker WK Kellogg agreed to a $3.1 billion buyout deal from Italy's Ferrero. The Wall Street Journal first reported the development earlier in the day. According to the report, a split, which would leave the company with products such as its namesake Heinz ketchup and Dijon mustard brand Grey Poupon, could be finalized in the coming weeks. "As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value," a company spokesperson said. Its shares closed up 2.5%. The company currently has a market value of $31.33 billion. Kraft Heinz was formed in 2015 after Warren Buffett's Berkshire Hathaway and Brazilian private equity firm 3G Capital combined the former Kraft Foods with H.J. Heinz, which they bought in 2013. But it has been a challenging investment for Berkshire. Inflationary pressures and a shift in focus toward fresher, less processed food have hurt demand for Kraft Heinz's lunch combos and other products. It lowered annual forecasts and reported a dour quarter in April, hurt by muted consumer spending. Kraft Heinz also said last month it would stop the launch of new products with artificial colors in the U.S. after Health Secretary Robert F. Kennedy Jr. outlined plans to remove synthetic food dyes from the U.S. food supply to address chronic diseases and conditions. "KHC spinning off its grocery business echoes the 2023 Kellogg spinoff in which the company spun off its cereal business, which had been in volumetric decline for some time," said Connor Rattigan, analyst at Consumer Edge. "As CPGs (consumer packaged goods makers) contend with both changing consumer preferences and a challenging consumer environment, other CPGs may look to M&A and or similar corporate actions to improve their category exposures and improve their top-line trajectory," Rattigan said.
Yahoo
12-07-2025
- Business
- Yahoo
Kraft Heinz eyes breakup, WSJ reports
Kraft Heinz (KHC) is looking to spin off a significant part of its grocery business, according to a report from the Wall Street Journal. Market Domination Anchor Josh Lipton and Freedom Capital Markets chief global strategist Jay Woods discuss the news. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Our one key headline to get to Kraft Heinz is reportedly preparing to break itself up. This is according to the Wall Street Journal. Kraft Heinz may split its grocery business, including Kraft products, into a new entity valued up to $20 billion. The remaining company would focus on faster growing sauces and condiments like Heinz ketchup. A split could be finalized in the coming weeks, according to the report. Jay, what do you make of it? Yeah, um, we're going to be anticipating this one all weekend. We had the Kellogg's deal, when Kellogg split up into a serial business to, uh, just, uh, what was it, serial and then the candy bar business and the WLK brand got bought out this week. So it was shareholder value and right now, Kraft Heinz is 43% off its all-time high. They need to shake things up. The staples have been under pressure. So, uh, even if this doesn't come to fruition, this is something that they need to start thinking about, not just at Kraft Heinz, but at some of these other bigger brands. Anything to enhance shareholder value will be critical going forward. Yeah, the journal does remind us too, Jay, that Kraft Heinz said in May it was continuing to evaluate strategic transactions to unlock value and that it had said Buffet's Berkshire Hathaway would no longer hold board seats at the company and someone said, okay, maybe that was paving the way for some significant changes. So we shall watch and we shall see. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
