Monday, April 3, 2017

RI Announces Most Successful Consumer Packaged Goods Brands of 2016

Small and Midsize CPG Companies Increasing Number of Successful New Product Launches; Personalized Products Finding Their Niche with Consumers

April 03, 2017 11:57 AM Eastern Daylight Time

CHICAGO--(BUSINESS WIRE)--IRI® has announced last year’s most successful consumer packaged goods launches in its 2016 New Product Pacesetters™ report, an industry-recognized benchmark analysis of exceptional first-year CPG sales success for newly launched products. Thousands of new brands hit retail shelves during 2016, with 80 percent of the top-ranking brands hailing from small and midsized manufacturers and accounting for 64 percent of Pacesetter dollars. Overall, the top-selling 200 new brands captured cumulative year-one sales of more than $5.8 billion across IRI’s multi-outlet geography.

“The top product launches of 2016 highlight the three P’s of successful innovation — prevention, personalization and pizzazz”
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“The top product launches of 2016 highlight the three P’s of successful innovation — prevention, personalization and pizzazz,” said Susan Viamari, vice president of Thought Leadership for IRI. “Each plays an essential role in driving awareness and engagement in today’s marketplace. Personalization is perhaps the most talked about, and desired, phenomenon in marketing today. Keying in on consumer preferences is critical because of the sheer volume of information in front of people at any given time. Products that are delivering small and powerfully targeted solutions that grab consumers’ attention and make them feel and look great are resonating and are making a huge impact."

“Technology and know-how are allowing CPG marketers to not only understand consumer needs and wants, but also to respond to them more effectively than ever before,” added Larry Levin, executive vice president of Consumer and Shopper Marketing for IRI. “As a result, average year-one dollar sales from even the most impactful new product launches are continuing to decline, a trend we noted in Pacesetters during the last couple years. Certainly, mega launches surpassing $100 million are still occurring, but the brands in the middle of the pack are getting the squeeze as smaller, more targeted brands are capturing a growing share of Pacesetter sales.”

Food and Beverage Launches Capture $11.4 Million in Median Year-One Sales

For the top 100 food and beverage champions, median year-one dollar sales were $11.4 million, down from $19.6 million in 2015. Prevention played a key role in driving the success of these top-performing products as consumers turn to CPGs for help in meeting their nutritional goals.

2016 New Product Pacesetters: Top 10 Food and Beverage Brands
($ Millions)
(Total Year-One Dollar Sales, Multi-Outlet)
1. DairyPure®			$1,163.1
2. Dunkin' Donuts® K-Cups®			$204.1
3. Not Your Father's Root Beer®			$114.6
4. OREO Thins®			$110.2
5. Artesano™			$102.4
6. Screamin' Sicilian™			$73.2
7. Oscar Mayer™ Natural™			$61.7
8. DairyPure® Creamers			$54.9
9. Sargento® Balanced Breaks®			$54.2
10. Henry's Hard Soda®			$50.3

Source: IRI Market Advantage™

Consumers want fresh, unprocessed, simple foods that are made with ingredients that they can understand, because nutrition has become a first line of defense for living well. And since 40 percent of consumers recognize that being healthy starts with lifestyle, they are reading labels, looking for products with fewer ingredients, and turning to natural, organic and superfoods that can boost nutritional impact.

Antibiotic-free foods (ABF) are becoming increasingly more popular, particularly in meat, poultry and dairy products. DairyPure, the top-selling beverage launch of the year, is an example of an ABF solution that is hitting the mark. Consumed by 42 percent of U.S. households, DairyPure is the result of a consolidation of a number of regional brands. To ensure consistency and purity, regional dairies are required to meet stringent sourcing, processing and testing processes, which are consistent with DairyPure’s Five-Point Purity Promise.

The sweet snacks sector is offering powerful new options in indulgence. While there were only four sweet snack Pacesetter brands this year, down from seven in 2015, some of these brands made a really big splash in the market by providing indulgence with a healthier-for-you twist. Nabisco, for instance, introduced OREO Thins. Even though it is indulgent, this launch is a light, new twist on a classic favorite, packing traditional OREO flavors into a delicate new cookie with a crispier texture, less crumbs and fewer calories.

Non-Food Champions Secure $17.6 Million in Median Year-One Sales

Technology-enabled personalization is making a powerful statement by helping consumers get better results and experience excitement and relaxation in the ways they prefer. This is abundantly clear across the wide range of 100 top-performing non-food brands, which had median year-one dollar sales of $17.6 million.

Consumers want products that nourish from the inside out and contain exciting or relaxing ingredients. Fun new product forms increase enjoyment and personalization. Top-launching skin care brand Garnier SkinActive, for instance, offers a range of skin care products developed to simplify skin care and actively make skin look fresh and healthy, no matter the skin type. The brand’s website offers a quick-search feature that helps consumers pinpoint the right product and also offers guidance on developing the ideal personalized skin care routine.

2016 New Product Pacesetters: Top 10 Non-Food Brands
($ Millions)
(Total Year-One Dollar Sales, Multi-Outlet)
1. FLONASE®			$316.5
2. Gillette® Fusion® ProShield™			$144.9
3. Garnier® SkinActive®			$117.5
4. Tide PODS® Plus Febreze™			$87.3
5. Crest® Pro-Health™ Advanced™			$80.1
6. The Pioneer Woman® Collection			$79.1
7. Persil® ProClean®			$63.2
8. CESAR® HOME DELIGHTS™			$45.2
9. Tampax® Pocket Pearl™			$41.9
10. Old Spice® Fresher Collection™			$39.0

Source: IRI Market Advantage™

The health care sector saw a decline in its number of Pacesetter-earning brands in 2016, but average launch size increased. The jump in average dollars earned year one was attributable to the powerful over-the-counter (OTC) transition of FLONASE, with $317 million in its first OTC year. Excluding FLONASE, average year-one dollar sales for new health care launches fell by nearly 60 percent, again due to the presence of several more targeted new product launches.

Top Launches Capture Median $23.4 Million in First-Year Sales in Convenience Stores

In the convenience store arena, median year-one sales across the top 10 IRI New Product Pacesetters were an astounding $23.4 million, demonstrating the power behind consumers’ ongoing quests for both healthy and indulgent personalized experiences.

2016 New Product Pacesetters: Top 10 Convenience Store Brands
($ Millions)
(Total Year-One Dollar Sales, Convenience Store Channel)
1. DairyPure®			$385.9
2. Red Bull® The Summer Edition™			$149.0
3. Quest Bar®			$78.4
4. Nut Harvest®			$60.2
5. BODYARMOR™			$55.0
6. Rockstar® BOOM!			$53.3
7. Rockstar® Freeze			$51.7
8. Not Your Father's Root Beer®			$44.2
9. Monster Energy® Ultra Black™			$39.5
10. AMP® Energy Zero			$25.0

Source: IRI Market Advantage™

Four energy drinks made the top-10 ranking, reinforcing the notion that Americans want energy-packed solutions that can be consumed on the go. New energy launches provide an array of flavor experiences, but there are several new options for those seeking healthier alternatives, such as Monster Energy Ultra Black, which is light and refreshing, with no calories and no sugar. AMP Energy Zero is bursting with flavor, but has no calories.

“A 360-degree approach to health and wellness is yet again expanding the competitive set for food and beverage and non-food consumer packaged goods,” concludes Viamari. “Marketers must adopt a solution-oriented mindset and keep in mind that the consumer is in charge. The key is to educate and draw interest in a product with a powerful and personal marketing story, rather than just throwing a product out there and expecting the shopper to come.”

Amazon Cash makes it easier to shop on Amazon without a debit or credit card

by Chaim Gartenberg@cgartenberg Apr 3, 2017, 11:18am EDT

Amazon is launching a new service today called Amazon Cash, which is meant to make it easier than ever for customers who don’t have credit, debit, or bank cards to still be able to shop on the popular internet retailer, as noted by TechCrunch.

The new service allows for customers to simply display a barcode at a participating retailer and deposit cash directly to their Amazon account. It’s a slightly more streamlined process than before: previously, anyone wanting to use Amazon without a bank card was forced to buy gift cards or prepaid debit cards.

The barcode for Amazon Cash can be generated by visiting the Amazon Cash site, and it can be accessed through Amazon’s website, the mobile app, or saved to things like the Android home screen or the iOS Wallet for easy access. Customers without access to smartphones can also print out the barcode and bring to stores in person to directly deposit funds.

Amazon Cash will be available at a variety of major retailers, including CVS Pharmacy, Speedway, Sheetz, Kum & Go, D&W Fresh Market, Family Fare Supermarkets, and VG's Grocery (with more retailers said to be on the way). Customers can deposit money in amounts between $15 and $500 dollars, whereupon it will be accessible as credit on Amazon, just like a gift card.

It’s an important move on Amazon’s part to better appeal to customers that don’t have access to bank or credit cards, which — per a 2015 FDIC report — comprise almost 7 percent of the country, (along with an additional 24 percent that are considered “underbanked”). It’s also yet another service that puts Amazon in contention with competitors like Walmart and PayPal, which both offer similar services for unbanked customers.

Report: In U.S. battle for top brands, Publix remains Florida's most potent business name

Friday, March 31, 2017 3:09pm

The Publix brand remains Florida's most valuable business brand, says a new stufy from Brand Finance of the 500 biggest U.S. business brands. [JOHN PENDYGRAFT | Times]

Once again, Publix ranks as Florida's most valuable business brand. So says Brand Finance, a valuation and strategy consulting firm that analyzes the value of the world's 500 largest corporate brands. Lakeland-based Publix came in at No. 1 in the state despite brand turbulence with the recall of edamame beans and seven failed health inspections in Florida, Brand Finance said. The grocery chain's value dropped over the past year by 3 percent to $5.8 billion, and its rank slipped from No. 91 to No. 112. Its brand value is now only just ahead of Miami-based Burger King, valued at $5.1 billion.

Florida is home to 15 of the 500 most valuable U.S. brands with a combined value of $39.5 billion. Among those brands are Jabil, Raymond James Financial, Carnival Cruise Lines and Lennar. Overall, Brand Finance named Google ahead of Apple as the top U.S. business brand.

Publix Super Markets Inc. announced it plans to relaunch its GreenWise store concept in 2018.

The Lakeland-based grocer will open a newly redesigned GreenWise market near Florida State University late next year.

GreenWise is Publix's higher end organic grocery store brand. The company has three other locations, including one in South Tampa.

"We are committed to being the retailer of choice for consumers who are looking for specialty, natural and organic products," said Kevin Murphy, Publix senior vice president of retail operations in a statement. "Over the past several years, we have gained valuable insights from our existing GreenWise locations. By combining these learnings with customer feedback and market trends, we are better positioned to deliver on our vision of being the best at serving the evolving lifestyles of today's consumer."

Publix plans to share more information about the future expansion of its GreenWise market program closer to the Tallahassee store opening. However, a press release states that the company continues to "aggressively look" for additional GreenWise locations.

Sunday, April 2, 2017

Amazon.com Inc. Launches Its Echo Home Assistant In The U.K.

An attendee holds an "Echo" device during the U.K. launch event for the Amazon.com Inc. Echo voice-controlled home assistant speaker in this arranged photograph in London, U.K., on Wednesday, Sept. 14, 2016. The Seattle-based company today announced that its Echo product line will be available in the U.K. and Germany starting in the fall, the first time the gadget will be available outside the U.S. Photographer: Luke MacGregor/Bloomberg via Getty Images Bloomberg Bloomberg via Getty Images

BLUE RIBBON COMPANIES

4 Ways Amazon Could Make the Echo More Useful

Lisa Eadicicco

Mar 31, 2017

We’ve long been used to talking to our technology. Apple’s Siri first launched six years ago, after all. But industry experts say that entirely voice-controlled gadgets, like Amazon’s Echo smart speakers, are getting us more comfortable than ever with bossing around our tech.

The Echo works like this: You put one in your home and connect it to your Wi-Fi network. Then, after a bit of customization, you’re able to order it to do certain tasks using one of several “wake words,” like “Alexa.” You might ask the Echo for the latest news or weather, for instance. Third-party Echo apps, which Amazon calls “Skills,” make it possible to order a pizza from Domino’s or request a ride from Uber.

Following the success of the Echo, Amazon (AMZN, +1.16%) is bringing its voice-activated assistant to all manner of devices, from refrigerators to cars. Meanwhile, companies like Google (GOOG, -0.23%) and Microsoft (MSFT, +0.23%) are embedding their own virtual helpers in speakers. But it’s still Amazon’s Echo speakers and artificial intelligence software, called Alexa, that many experts consider to be leading the pack.

Yet much of the Echo’s utility is dependent on those third-party skills. There are now 10,000 such skills, up from 7,000 just three months ago — so clearly developers are interested in the platform. But some observers argue many of these skills aren’t actually all that useful. A January report from analytics firm VoiceLabs suggests there’s only a 3% chance users who download voice apps for their Amazon Echo or Google Home will reuse that app a week later. Both Gizmodo and The Los Angeles Times have lamented the Echo’s lack of worthwhile skills, with the Times’ Michael Hitlzik writing that Amazon’s speaker is “still waiting for its killer app.”

Alexa developer Jonathon Myers, who designed an interactive storytelling app called EarPlay, says users and programmers alike are still figuring out the best ways to use devices like the Echo. He likened the current state of affairs as similar to the early state of the Internet. “You would find a lot of pages that were just very confusing that you couldn’t get through,” he says.

How can Amazon make life easier for developers, and help them make better Echo skills? Here’s a look at four improvements that developers want.

Easier app launching

Right now, hailing an Uber or ordering a Starbucks coffee through the Echo sounds like this: “Alexa, ask Uber for a ride,” or “Alexa, tell Starbucks to start my order.” Justin Kovac, founder of Pargee, which makes a 7 Minute Workout skill for Alexa, believes giving developers more flexibility when choosing the phrase needed to activate their skills could make interacting with the Echo easier. For example, the Domino’s app might benefit from users being able to say “Alexa, order pizza” rather than “Alexa, open Dominos and place my Easy Order” to get a pie.

“When you have to remember a script, you’re an actor now,” says Kovac.

Some apps already benefit from such simple voice controls. It’s possible, for instance, to use the Echo to activate Internet-connected lights by saying, “Alexa, turn on my living room lights.” But this type of functionality is currently limited to smart home devices and music playback. A spokesperson for Amazon says the company is exploring ways to improve this.

A potential drawback here is that allowing multiple trigger phrases would increase the chance of overlap between apps. If you have both Pizza Hut and Domino’s Echo apps installed, for instance, they might confuse one another when you ask to order a pizza. “Just trying to avoid everyone stepping on each other’s toes is another challenge,” says Kovac. But he argues that users could be allowed to pick default choices for certain requests.

Social connectivity

If you’ve got an Echo in your living room or kitchen, you’re probably used to sharing it with your roommates or family members. And while it’s possible to play multiplayer games like trivia challenges, the device is really designed as a single-person experience. Some developers would like to see this change. “Being able to have several people in a room together interacting with the device, that’s a feature I think very much is in demand,” says Myers.

One way to make the Echo more social: Enable it to distinguish between different people’s voices. TIME exclusively reported last month that Amazon has been developing such a feature, known internally as Voice ID. While the company hasn’t confirmed any plans to bring new social-focused capabilities to the Echo, reports from The Wall Street Journal and Recode also indicate that phone calling and an intercom system could be coming to Amazon’s speaker in the future. When contacted by TIME about these features and others mentioned in this story, an Amazon spokesperson said she could not speculate on the company’s future plans.

Notifications

Numerous industry experts have called voice interaction the next evolution of the way we use computers. Still, the Echo is missing a feature that’s been a monumental part of the smartphone experience: notifications. The Echo doesn’t speak or provide information unless it hears a trigger phrase. A report from The Information suggests Amazon is working on adding audio notifications to the Echo, but the company hasn’t yet announced any official plans to introduce such a feature.

The addition of notifications could make skills that provide the weather or sports scores more useful. But both Amazon and Alexa developers will have to make sure users have enough control over which notifications they hear and how often they hear them to prevent them from becoming annoying. “It’s a gray area,” says Kovac. “Do you want it going off for every one of your skills?”

A more lifelike voice

Some Echo skills, like The Magic Door, a story-driven interactive game, feature voice actors who play the roles of various characters. But Amazon currently allows pre-recorded audio to play for only 90 seconds, which restricts the apps’ writers. “We have done a lot with that, but it’s a limitation,” says Andy Huntwork, who co-created Magic Door with his wife Laura Huntwork.

A version of Alexa that’s more vocally expressive could also improve the quality of skills like Magic Door, says Laura Huntwork. “We can add pauses in places to make it sound a little more realistic,” she says. “But it would be nice to see her improve and become more of a real person over time [in terms of] the way she talks.”

Taken together, these changes could help Amazon achieve its goal of making the Echo and Alexa the ultimate home assistant. And they would satisfy outside developers, whose contributions can make or break a platform — just think of how many non-Apple or non-Google smartphone apps you use and love. But more importantly, they would make the Echo and Alexa more useful, and better products overall.

Size matters: Bulk foods are going mainstream in US grocery stores

Kroger, Wegmans and Hy-Vee are among the retailers stocking up on loads of seeds, rice, beans and other products.

AUTHOR

Jeff Wells @JeffWellsWH

March 29, 2017

In an industry that runs on packaged convenience, self-service bins full of rice, seeds, beans and oats aren’t typically viewed as sources of growth. But thanks to increasing consumer interest in natural and organic products, cooking at home and experimenting with new ingredients, bulk bins are migrating from their traditional homes in natural grocery stores to mainstream retail.

Giant Eagle’s Market District now carries an assortment of spices, nuts, dried fruits and other ingredients, as well as a few attention grabbers, like a make-your-own trail mix station, bulk candy bins and various bulk olive oils. Midwest retailer Hy-Vee offers pasta, cereal, tea, coffee and dozens of other selections in bins positioned inside its stores’ dedicated natural and organic departments. Kroger also has bulked up in recent years, as have Wegmans, H-E-B and other grocers.online & offline shopping preferences and noteworthy demographic differences.

Diana Sheehan, director of retail insights with Kantar Retail, said more premium stores — including those owned by mainstream supermarkets — are turning to bulk as a way to help their stores stand out in an increasingly competitive environment.

“These stores are starting to embrace bulk,” Sheehan said. “And it’s less about a natural and organic offer and more about that premium, unique offer.”

The benefits of bulk

Bulk foods generate high margins for retailers and are fairly simple to execute, she said. These sections also tend to be destinations for loyal shoppers. The mere presence of bulk often signals that a store is committed to whole, unprocessed foods at a time when these characteristics are increasingly being sought by shoppers.

For consumers, bulk foods carry the promise of less waste with shoppers taking only what they need. It also offers price savings compared to packaged alternatives. A 2012 study by Portland State University in cooperation with the Bulk is Green Council, an industry trade group, found bulk saved shoppers an average of 89% over packaged varieties. Subsequent reports have tempered that number — Sprouts Farmers Market has estimated its bulk items are typically 15% to 20% cheaper than their packaged counterparts. Regardless of the number, the fact remains that buying in bulk is a money-saver.

Another advantage is that consumers can use it to try unique foods or ingredients that might be difficult to find or considerably more expensive in packaged varieties. Shoppers can find everything from amaranth flour to Himalayan salt and raw cacao nibs to different types of nut butters.

“Bulk is as much an experiential play as anything,” said Sheehan.

Brett Karminski, senior brand manager in the bulk division at Frontier Co-op, a manufacturer specializing in herbs, teas and spices, noted many consumers turned to bulk during the recession, and have stuck with it even as the economy has improved. He said customers recently have shown a high level of interest in herbal teas and cooking spices. Sales of Frontier’s bulk organic hibiscus flowers used to make tea have grown 71% over the past year, while finely ground Himalayan salt has surged 69%.

“We’re seeing a more educated spice consumer who is looking to experiment with new flavors and bulk items they may have learned about through social media and digital influencers,” Karminski told Food Dive in an email.

Todd Kluger, vice president of sales and marketing at Lundberg Family Farms, said he’s seen strong consumer interest in bulk rice and quinoa varieties sold by his company, including sushi rice, short-grain brown rice and tri-color quinoa.

“Being able to experiment with variety, being able to purchase as much or as little as they need, and looking for price to value are all drivers of interest from consumers in the bulk section,” he told Food Dive in an email.

Ward’s Supermarket in Gainesville, Fla., installed its bulk department twenty-five years ago. The section was comprised of sixteen bins, according to natural foods manager Russ Welker. Today, the retailer has 400 bins located in the center of the store, offering everything from roasted peanuts to pasta and hard-to-find flours and spices.

“Being able to experiment with variety, being able to purchase as much or as little as they need, and looking for price to value are all drivers of interest from consumers in the bulk section.”

Todd Kluger

Vice president of sales and marketing at Lundberg Farms

The top sellers in the department are the traditional bulk offerings — oats, raisins, beans and grains. But Welker said he’s also seeing interest in the trail mixes, cooking flours and spices. Oftentimes, customers will shop the stores’ fresh departments and then stop by the bulk section to pick up herbs and seasonings.

“There are some interesting things happening in the spice section,” Welker told Food Dive. “Indian spices are especially popular right now. People like to buy our produce or seafood and use that seasoning when they’re making meals.”

Welker said bulk not only has helped Ward’s grow sales, but added an aura of health to its aisles.

“Part of the ‘natural’ image is having a bulk department,” he said.

Educating the consumer

Despite their ability to generate sales and healthy vibes within stores, bulk foods face significant barriers. Shoppers are often perplexed by the rows of bins, or simply overwhelmed by choice. Many don’t know what to do with amaranth flour or raw wheat germ, and often opt for packaged foods because they’re more convenient.

That’s why in-store education involving recipes, product definitions and simply how to bag and pay for bulk items is critical, said Sheehan.

“Educating [consumers] about why it works and how to execute that department are going to be critical to the department evolving,” she said.

At Lucky’s Market, a natural and organic chain that operates stores in eleven states, education is an integral part of its bulk department. Shoppers can find instructional signage — including a flowchart on how to use a store-provided bag versus a personal container — along with recipes for spice blends, homemade granola and other items.

Kristen Tetrick, Lucky’s director of marketing and community engagement, said bringing customers up to speed is crucial to helping the grocer sell the more than 300 bulk items on display in each of its stores. Space dedicated to bulk has steadily increased over time, she said, with stores introducing an average of one new item each month. Top sellers right now are bulk candies and chocolate.

“Over the years we have incorporated a lot of savory and sweet snacks in our bulk bins, such as yogurt pretzels, trail mixes, mixed nuts and sesame sticks,” Tetrick told Food Dive in an email.

In addition to a consumer learning curve, bulk’s unique delivery method can become a liability if not properly managed. Filling bags and jars with loose food can be messy, and stray piles of food can make a bulk department appear sloppy. Frontier's Karminski said design innovations in bulk bins have helped with flow control, but messes still happen. The setup also can invite some shoppers to snag a handful of food without paying.

“The challenge with bulk foods is that you need it in stores that are very well serviced from a customer personnel perspective. You want to make sure those items are well taken care of.”

Diana Sheehan

Director of retail insights with Kantar Retail

These challenges raise the potential for dollars lost in the department, which means it’s imperative retailers have at least one staff member on hand to monitor the department. Welker said he always has at least two people “to nurture" the department.

“The challenge with bulk foods is that you need it in stores that are very well serviced from a customer personnel perspective,” said Sheehan. “You want to make sure those items are well taken care of.”

Looking to the future, Sheehan said bulk foods will continue to expand their presence in premium supermarkets. She also predicted growth will increase with regional grocers, which tend to invest more in staffing and are looking to stand out from their large-scale competitors.

“I’m not sure yet if bulk is going to be the next big thing for Kroger, because they’re not staffed that way,” said Sheehan. “Wal-Mart, same thing. But for those strong regional players that have strong levels of personnel, I think you could see an evolution.”

Amazon Folds Up Diapers.com Parent

Thursday, 30 March 2017 16:01

Amazon is shutting down its Quidsi division, the parent company of six e-Commerce sites, including Diapers.com and Soap.com. The e-Commerce giant bought Quidsi for $545 million in 2011, but revealed in a statement that the business hasn’t been profitable.

There is no confirmation of when the six Quidsi-affiliated sites will shut down, but once they do, their products will be stocked on Amazon.com. Quidsi's programmers will shift their focus to the AmazonFresh grocery service, which is testing “AmazonFresh Pickup” in two separate Seattle locations.

More than 260 employees at the Quidsi headquarters and customer service operation in Jersey City, N.J. will lose their jobs in June, according to a notification sent to the New Jersey Department of Labor. The notice indicated that some of them will be able to apply for other positions at Amazon.

With Amazon recently purchasing Middle Eastern e-Commerce retailer Souq.com for $650 million, the retail industry now has a chance to see how another large acquisition plays out for the e-Commerce giant. Souq.com is presently the dominant online retailer in the Middle East, enabling Amazon to use the brand as a launch pad for expansion in the region.

It’s too early to say whether Amazon will achieve significant Middle Eastern growth, but Souq’s high brand recognition in the region is likely to provide a better long-term investment for Amazon than the Quidsi acquisition did. It also remains to be seen whether Amazon will choose to build out its own branded presence in the Middle East.

The Quidsi move also shows that Amazon is very willing to cut ties with a brand even if it has already paid large sums of money for it. The e-Commerce giant likely gathered plenty of data and knowledge from Quidsi team members in the seven-year span since purchasing the company, so it makes sense to integrate its merchandise now under the Amazon brand.

The decision to close Quidsi has a coincidental tie-in with Amazon rival Walmart, which has bolstered its own e-Commerce stature with acquisitions of its own over the past year, including its $3.3 billion purchase of Jet.com. Marc Lore, the Founder and CEO of Jet.com and President and CEO of Walmart's U.S. e-Commerce operations, founded Quidsi in 2005 as a direct competitor to Amazon in the baby and health products categories.

Although Diapers.com found success offering free delivery of diapers, Amazon began discounting diapers below the Diapers.com prices, starting a price war with Quidsi that the latter couldn’t recover from. This led to Lore and Co-Founder Vinit Bharara reluctantly selling Quidsi and its businesses to Amazon before exiting the brand in 2013.