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Technology

Amazon is now developing its own wines

Trader Joe’s has Two Buck Chuck. Amazon? A new wine label called Next with bottles costing $20, $30 and $40 a pop.

The company recently announced that it helped develop this new wine brand produced by King Vintners, a subsidiary of Oregon’s King Estate Winery, and had started selling it on Amazon.com. In a press release, the new wine brand is described as “the first wine ever developed from conception to release with Amazon Wine.”

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Recode has asked an Amazon rep for details on the relationship between Amazon and King Vinters and I will update this story if I get feedback. In the meantime, it sounds like Amazon has contracted with King to develop the wine on its behalf.

The new line includes a Pinot Gris for $20, a Red Blend for $30 and a Pinot Noir for $40 — not extravagant prices, but higher than I would expect for Amazon, which always is thinking about mass appeal. Amazon launched its online wine marketplace, Amazon Wine, in 2012, but this appears to be the first time it has helped create its own wine.

Private-label brands can help boost profit margins, in part because they typically don’t require big marketing budgets to get them exposure in front of a retailer’s own customers. Amazon sells private-label brands in product categories as varied as button-down shirts and snacks and could use Whole Foods stores to push some of these items.

Amazon also offers alcohol delivery in some cities in as little as one hour, in partnership with local shops through its Prime Now service.

By Jason Del Rey, Recode.net.

CNBC’s parent NBCUniversal is an investor in Recode’s parent Vox, and the companies have a content-sharing arrangement.

Source: Tech CNBC
Amazon is now developing its own wines

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