Since Amazon acquired Whole Foods in 2017, the industry has been speculating about the company's future in food.
“Food manufacturers and producers need to gear up for two key possibilities: Amazon nudging itself into shoppers’ carts with food of its own making. It already has its own brand of many items such as batteries and pet food and Whole Foods sells its 365 Everyday Value brand. The other major threat: Amazon engaging in margin-busting negotiations,” says a USA Today article.
✔ Foodservice distribution is currently dominated by three large players. What would happen if Amazon got involved?
✔ What steps would you take in the first 30 / 60 / 90 days?
✔ Margins for typical foodservice distributors are in the low single digits after adjusting for warehousing, trucks and sales forces.