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What Amazon’s new $22 billion food deal means for you


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Photo: Twenty20/Criene

It’s no secret that ever since Amazon acquired Whole Foods last summer, it’s shaken the food industry to the core. From what it means for small, local brands to if stores sans checkout lines are coming to your hometown, the deal continues to make headlines. The latest news: Amazon has committed to $22 billion in future food purchases from its suppliers, according to CNBC.

The reason why this is particularly interesting is that it shows just how much Amazon is investing in the future of grocery shopping. Before buying Whole Foods, the most Amazon put toward food was $2 billion. (Since the deal, they’ve spent roughly $13 million.) The new $22 billion investment shows just how much the online retailer is changing. (Shout out to anyone who remembers when they only sold books.)

The deal will last through 2025, a commitment that’s a lot longer-term than grocery retailers typically make. Revolution number two: Expect a lot more changes to come in the way you grocery shop—this is clearly where Amazon is putting their muscle.

So, the debate of whether Amazon-Whole Foods running the world is a good or bad thing isn’t going anywhere. What’s clear is that the giants will continue to dominate.

Another change since the deal: Amazon Prime will now deliver your Whole Foods haul in under two hours. Don’t want to give them anymore business? Check out this online retailer that sells everything for $3 or less.

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