Today in restaurant and grocery tech news, Instacart gets into the prepared meals space, while PepsiCo leans on brand affinity to make its price increases work. Plus, with the rumored expansion of the Amazon Fresh brand, Amazon’s grocery efforts are literally and figuratively all over the map.
Instacart Fires Back at DoorDash With Prepared Meals Partnership
In the early months of the pandemic, as consumers turned to delivery options to meet their food needs, they had three main options: grocery, restaurant or meal kit. As delivery sales remain elevated even as mobility has increased, major players from each of the categories have been looking to capture consumers’ spending across all three. Now, Instacart is getting into prepared meals and meal kits.
Emotional Attachment to Brands Outweighs Price Concerns, Says PepsiCo CEO
As businesses continue to struggle against supply chain and labor shortages, PepsiCo’s food and beverage growth has outpaced the market as a whole, even as the brand has raised prices to accommodate these challenges. In the third quarter of 2021, the consumer packaged goods (CPG) giant PepsiCo saw net revenue rise 12% year over year, the company announced on Tuesday (Oct. 5). Chairman and CEO Ramon Laguarta attributes this sales strength in the face of recent price increases to a trend among consumers of decreased elasticity.
Amazon’s Erratic Grocery Efforts Continue With Rumored Amazon Fresh Expansion
Amazon Fresh appears to be continuing its slow, furtive expansion, giving little hint as to the long-term vision for the brand. Last week, news broke of two possible new locations, each of which would be in a market previously untapped by the grocery brand. The news follows an erratic year for Amazon’s grocery efforts, with moments of apparent strength accompanied by what seem to be periods of great uncertainty.