Amazon starts selling its own branded coffee, baby food

Amazon now sells its own baby food.

The e-commerce giant has quietly launched its first-ever private-label foods on its website, now selling Happy Belly coffee and Mama Bear baby food. A company spokesperson confirmed that both products are made by Amazon and went on sale in the past few days. The products are only available to Amazon Prime members in the US.

The new products, which were rumored to be coming out, put Amazon into a new category for its homemade products. The Seattle retailer already sells its own Fire tablets; AmazonBasics batteries, umbrellas and phone cords; and Amazon Elements baby wipes. The push into food could open Amazon up to a major new market.

Sales of store brands reached $118.4 billion in the US in 2015, an all-time record and an increase of about $2.2 billion from the prior year, according to the Private Label Manufacturers Association.

The spokesperson declined to say whether more private-label foods will be coming to the site soon.

Several major retailers have also delved into private-label products over the years, with Costco, Walmart and Target all selling their own brands. Private-label portfolios tend to have higher profit margins than brand-name goods because the companies save on advertising and brand development.

The goal for Amazon with the two new products appears to be slipping into the higher end of the market, similar to Whole Foods' private-label 365 brand. The Mama Bear baby food is organic, and Happy Belly coffee is small-batch, organic and fair trade.

Amazon's foray into private-label consumables, however, has come with its share of problems. After the company released its Amazon Elements diapers in late 2014, it ended up pulling the product from its store just a few weeks later because of less-than-enthusiastic "consumer feedback." The diapers haven't relaunched.

The ratings on the new coffee and baby food, though, so far are positive.