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Amazon (AMZN) confirmed it will reduce prices at Whole Foods in a third round of price cuts that are set to begin Wednesday.

The Wall Street Journal first reported the news on Monday. 

The price cuts, which will average about 20%, will affect fresh produce and expand benefits for Amazon Prime members who will now get more exclusive weekly deals across departments. 

"Whole Foods Market continues to maintain the high quality standards that we've championed for nearly 40 years and, with Amazon, we will lower more prices in the future, building on the positive momentum from previous price investments," said John Mackey, Whole Foods Market co-founder and CEO.

The move is part of Amazon's push deeper into the grocery business , a business that is dominated by rival Walmart (WMT) . Amazon also reportedly is working on opening a separate grocery chain that will have prices more in line with Walmart and Kroger (KR) by the end of the year. 

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"The standards for how our products are sourced, grown and produced are powerful and set Whole Foods Market apart from the competition. We will continue to focus on both lowering prices and bringing customers the quality they trust and the innovative assortment they expect from our brand," Mackey said.

Items like organic asparagus, organic strawberries and spiral sliced ham will all see price cuts. Prepared sandwiches and wraps will now be 20% off. 

Amazon shares are down 0.25% in Tuesdsay trading. 

Amazon is a holding in Jim Cramer's Action Alerts PLUS charitable trust

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