Amazon's Meal Kits Go on Sale as It Looks to Expand Groceries Business

Advertisement
By Associated Press | Updated: 19 July 2017 10:34 IST
Highlights
  • Amazon meal kits come with raw ingredients needed to prepare meals
  • They can help households save time, costs $16 to $20 for two servings
  • The development comes as Amazon plans to buy Whole Foods

Amazon has begun selling ready-to-cook meal packages for busy households in a bid to expand its groceries business.

Amazon-branded meal kits come with raw ingredients needed to prepare such meals as chicken tikka masala and falafel patties. They can help households save time; a kit for salmon with soba noodles can be prepared in just a half-hour, for instance. But at $16 to $20 (roughly Rs. 1,000 to Rs. 1,200) for two servings, they can be more expensive than buying ingredients separately in larger quantities.

Advertisement

The development comes as Amazon is also buying the organic grocer Whole Foods for $13.7 billion, a deal that would give the company a foothold in both groceries and brick-and-mortar retailing. Amazon could ultimately use Whole Foods' more than 400 locations as distribution centers for all food services, including meal kits.

For now, Amazon's meal kits are sold only in selected markets. The Associated Press was able to place an order in Seattle, Amazon's headquarters. A similar search for meal kits in New York generated items only from third-party vendors such as Martha & Marley Spoon and Tyson Tastemakers. Amazon didn't respond to requests for additional information.

Michael Pachter, an analyst at Wedbush Securities, said meal kits fall between regular groceries and deliveries of fully cooked meals and represent Amazon's bid to expand its food business.

"I'm not sure any of this will work, but that's where they are headed," Pachter said in an email.

Advertisement

The food industry consulting firm Pentallect says meal kits represent a "rounding error" of $2.2 billion in a $1.5 trillion US food industry, but the firm forecasts growth of 25 percent to 30 percent a year over the next five years. Pentallect says that because relatively few households have yet to try meal kits, there's a lot of room for growth.

Amazon meal kits are available only through the AmazonFresh grocery-delivery program, which costs $15 a month and requires a separate $99-a-year Prime membership. Delivery costs an additional $10 on orders of $40 or less, though free pickup options are available in Seattle.

Advertisement

Sales appeared to have begun in late June, based on customer reviews.

Earlier this month, Amazon applied for US trademark protection for the phrase "We do the prep. You be the chef." for packaged food kits "ready for cooking and assembly as a meal." Amazon listed a range of food types, including meat, seafood, salads and soups.

Advertisement

Shares of a leading competitor, Blue Apron, fell nearly 14 percent to $6.36 this week as reports of Amazon's plans emerged at GeekWire and other news sites. That includes a 3.5 percent drop on Tuesday. Amazon's stock increased $14.41, or 1.4 percent, to close Tuesday at $1024.45.

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Dyson Hot+Cool HF1 Fan, Cool Tower Fan Launch in India: See Prices
  2. Motorola Razr Flex 2027 Official Support Page Goes Live
  1. Apple Intelligence Features Get Paid Usage Packs as Monthly Limits Come Into Play
  2. Binance Spots iOS Bug That Could Put Cryptocurrency Wallet Keys at Risk
  3. Meta Muse AI Assistant Arrives on Apple Watch With Watch Face Shortcut
  4. OpenAI Introduces Control Room to Stop AI Models Quickly When Safety Concerns Arise
  5. Samsung Galaxy Watch 9, Watch Ultra 2 Could Get HMG Edition Watch Faces, Suggests APK Teardown
  6. North Korean Hackers Create Memecoins to Launder Proceeds of $6.3 Billion Binance Hack
  7. Oppo's Rumoured 12,000mAh Battery Smartphone Gets an Early Look Through MIIT Listing
  8. Urban Arc Go 2 Fitness Band, Q9i AI ANC TWS Earbuds Launched in India: Price, Specifications
  9. WhatsApp to Bring a New Contacts Tab for iOS as Feature Reportedly Starts Rolling Out in Beta
  10. Tecno Camon 60 Pro 5G, Infinix Smart 30e 5G Reportedly Spotted on EEC Website; May Launch Soon
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.