Now, Amazon to Sell Packaged Food and Beverages in India

Online retailer Amazon.com Inc plans to sell packaged food and beverages in India from mid-October, the Economic Times reported, citing a person familiar with the matter. Amazon, which has already started accepting bookings for Coca-Cola Zero - the beverage's low-calorie variant, will eventually start selling fresh food in India, the ET said. Amazon is already in talks with brands like Kelloggs and Cornitos, the paper said. Amazon India did not immediately respond to a request for comment. Amazon, which opened its Indian website last June, has drawn up the battle lines by slashing prices, launching same-day delivery, adding new product categories and embarking on a high-voltage advertisement campaign. In July, Amazon said it will invest a further $2 billion in India after the country's largest e-tailer Flipkart attracted $1 billion of fresh funds, raising the stakes in a nascent but fast-growing e-commerce sector.In the United States, PepsiCo Inc is also planning to launch a product exclusively through Amazon.com Inc as the snack and soft drink maker aims to expand its footprint in e-commerce. The product, a naturally sweetened soda called Pepsi True, will be available on Amazon in mid-October in 24-packs of 7.5-ounce cans, the company said. It will not be in brick-and-mortar outlets, though Pepsi said it plans to eventually sell True in grocery stores.
By introducing True through Amazon, Pepsi says it can better assess demand and gain insight into where people are buying it ahead of a wider launch. Industry insiders said the move illustrates how the food and beverage industry is expanding into non-traditional distribution channels like e-commerce as it searches for growth.© Thomson Reuters 2014