Amazon Prime Now – Disruptive Same Day Delivery Arrives In Indy

Amazon Prime Now – Disruptive Same Day Delivery Arrives In Indy

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I have to admit, when I first read about the same day delivery service I was a bit skeptical.   How would it work?  Why would I really want it?  Could anyone really do it at scale on a sustained basis?

Experience:

Well, early this morning I was reading the news on my iPhone and received a message from Amazon that all Prime members now had access to same day delivery (1-2 hours from order) through its new service called Prime Now.   #PRIMENOW   It piqued my interest.  Is this real?  Can they really pull it off?  So I downloaded the Amazon Prime Now app and started browsing.  I was amazed at the breadth of offerings from grocery to sports to electronics and more.  I’ve been in the market for a luggage rack for my truck and found exactly the type I wanted. I knew we were out of eggs and browsing the groceries made me think about breakfast so I added some free range organic eggs and all natural sausages.  Click click click and my order was in process.

They gave me a delivery window of 8-10am (my order was placed around 5:45am).  I received my order exactly as expected at 9am and was able to make breakfast before the rest of my day unfolded.  The driver told me I was among the first 10 orders in Indy.  This was a profoundly positive experience.

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Amazon Prime Now is currently available in Atlanta, Baltimore, Chicago, Dallas, Indianapolis, Manhattan and Miami. The service will continue rolling out to additional cities in 2015

What does this mean?

It is a game changer.  Not immediately, but with a sustained effort, I believe this could drastically change how consumers (and businesses) think about behave with their purchasing.   Home delivery is great and has been around for a long time (think the milkman of old, bottle water delivery etc).  We get deliveries from Amazon and tons of other companies all the time.  Some of these are next day or 2nd day which is super convenient.   We get a weekly grocery delivery of organic and locally grown produce from Green Bean Delivery which is FANTASTIC!  We have to plan our order by Monday at noon and receive our delivery of groceries on Wednesday of each week.

All that said, the idea that one can simply run out of something or decide one “needs” (wants) something, almost anything, and make it so two hours later is different.  This is what 90% of running errands ends up being.  Going to the store for this and that and picking up a few things in between larger shopping trips happens to all of us (or our families) every day. What if we could cut most of that out?  What if you need something you simply think it (a couple of swipes is not much work) and it arrives in about the same time it would take you to go out and shop, pick your items, load your car, drive home, unload your car. This requires a different kind of thinking around what is possible, but I don’t think its a that big of a leap for most of us.

Implications:

For Consumers

  • Time – For no extra cost (driver tip cancels out gas you would have used perhaps), it frees up time.  How much time in a week do we spend running to the store, shopping and returning? 4 hours? 8 hours? More?  What more productive things or fun things can one do with that time.  It is big.
  • Convenience – No need to plan very far ahead, need something, make it appear with no effort.  Wow.

For Small Business

  • Time – Same as above, many small businesses buy things by shopping.  Eliminate that need and do you eliminate a need for headcount manning the store while someone is out buying supplies?
  • Service – out of something? – now you can replenish immediately and provide your customers whatever you were missing in a short time.
  • Investment savings – reduce safety stock/inventory on certain items and replenish each day as needed.  For many small businesses (and large) space to store inventory is a real issue.  What if you could simply replenish as needed?  Though this service is focused on consumers, for many small businesses, it could be a better alternative to traditional distribution or running to Costco or Sam’s Club for stuff.  I’d expect Amazon to build out this aspect over time.

For Retailers & Distributors

  • Increased retail competition – just when you thought it could not get worse for retailers, it is getting worse.  Things that one swings in to just grab could be diverted to this.  Think of convenience, pharmacies (e.g. Walgreens and CVS), grocery (Walmart, Kroger, Safeway, Publix), electronics (Best Buy, Costco, Walmart, Target), sports equipment (e.g. Dick’s, Sports Authority).
  • Increased distributor competition – the businesses that source from traditional distributors could shift some of their purchases to this kind of model.  It will create the need for distributors to up their service level to stay competitive which can also drive up their costs.

Overall, I think I just experienced the future today.  I’d love to hear your thoughts.

 

 

 

 

Paddington Brands Launches 90+ Rated Agostón Spanish Red Wines Nationally Through Walgreens

Paddington Brands Launches 90+ Rated Agostón Spanish Red Wines Nationally Through Walgreens

Indianapolis, IN – July 12, 2011 – Paddington Brands announced today that it has launched its Agostón wine brand through Walgreens, the nation’s largest drugstore chain.  Bodegas Virgen del Aguila, the Spanish wine cooperative, confirmed Paddington Brands as the exclusive U.S. importer of Agoston wines.

 

Agoston Tempranillo Cabernet from Spain - now available at ALL Walgreens

“When we first tasted Agostón, we knew this was a wine that would appeal to American consumers,” said J. Smoke Wallin, chairman and CEO of Paddington Brands. “Year after year Agoston has been receiving 90+ points in the Penin Wine Rating Guide, which is Spain’s equivalent to Robert Parker ratings. We have worked with Walgreens in order to bring this savory wine to the United States at an affordable price.”

 

In April Paddington launched both a syrah/garnacha and a tempranillo/cabernet blend in more than 4,000 Walgreens stores. The wines, priced at $5.99 a bottle in most states, have become one of the drugstore chain’s top selling imported wine brands.

 

“Agostón is a great addition to Walgreens wine selection as our first Spanish wine,” said Dex McCreary, Walgreens divisional merchandise manager. “We look forward to working with Paddington Brands to promote this brand and make this quality import a success.”

 

Agoston Garnacha & Syrah

“We were immediately impressed with the knowledge, drive and ‘can do’ approach of the entire Paddington team,” said Jose Maria Andres, CEO of Bodegas Virgen del Aguila co-operative. “We are proud to work with Paddington to launch this wine with such an important retailer like Walgreens, a company that will advance the development of the Agostón brand.”

 

About Agostón

Agostón is named after the wild Spanish boar and is made by the Bodegas Virgen del Aguila co-operative. Located in the great wine-producing area of northern Spain we´re lucky to have a climate and terroir ideal for making quality wines full of character. Here we have 2,200 hectares of vines, planted with a good range of grape varieties, including the native Tempranillos and Garnachas, as well as international varieties, such as Cabernet Sauvignon and Syrah. Our oldest vines date from the year 1906 and help create wines of superb intensity, such as our Agostón range.

 

Our vineyards are located in the scenic foothills of the Ibérico mountain range and we have a wide variety of landscapes and eco-systems within our demarcated area. Under half of our land is taken up by vines, the rest being undisturbed areas of rocky outcrops and forested mountain slopes, dry river beds, wild-flower margins and old almond groves. This makes it and its surrounding area a zone of high biodiversity and an ideal wildlife haven, something that we’re committed to safe-guarding.  The winery produces close to 10 million litres of wine a year, with a full range of styles, including young fresh whites and rosés, intense aromatic reds and complex oak-aged “Crianzas” and “Reservas”. The winery is modern, and fully equipped and the underground maturation cellars have 13,000 oak barrels.  

 

 

 

 

About Paddington Brands
Paddington Brands (www.Paddingtonbrands.com) manages a portfolio of owned and agency premiere import & craft beers, artisanal spirits and fine wines.  Paddington’s team and partners have extensive experience in the global beverage and consumer packaged goods industries. Paddington owns the Napa Smith Brewery & Winery and 3 Amigos Tequila.  Paddington is headquartered in Metro-Indianapolis, IN, with offices in the United Kingdom and Napa, CA and a sales team covering the U.S. market and select international markets. Join us on Facebook http://www.facebook.com/pages/Paddington-Brands/220043258012149 and Follow us on Twitter @Paddingtonbrands

 

About Walgreens

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2010 sales of $67 billion. The company operates 7,733 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.

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