Ocado's Own Label Will Reach £100 Million Sales Next Year

Ocado plans to broaden its own label ranges to include more premium products and a discount range as it prepares for a surge in growth.

Sales have risen 58 per cent this year to £1.6 million a week and the delivery firm expects to reach annual sales of £100 million a week next year, according to the Grocer magazine..

Ocado, which mainly sells Waitrose products, plans to grow its Ocado Exclusive produce range over the next 12 months which currently consists of 24 products. It wants a bigger organic range and also plans to launch a 'value tier' called Ocado Simple in 2015.

Delivery Firm Ocado Growing Its Own Range

'It's intended to be complimentary and incremental to Waitrose own label. We are looking at what is out there in the market and introducing products that Waitrose doesn't sell,' Ocado's head of own label Alison Rhodes told the Grocer.

'We think we can broaden our appeal,' she said. Ocado began its own-brand range selling meat and fresh produce and, more recently, pizza, pasta, coffee.

This summer it was extended to Indian ready meals and traditional Italian and Chinese ranges are now under development. It is also planning a range of household products such as washing powder and tin foil.

According to Ocado's agreement with Waitrose, the proportion of products it must source from the supermarket reduced on May 25 this year from 80 per cent to 70 per cent.