Main own plant-based brands
Ocado Own Brand has vegan range.
- Ocado positions itself as the world’s leading pure-play online grocer. Its revenues from retail (primarily UK) represent around 90% of their total revenues, though it is growing its solutions business. In the UK, their retail market share is between 1-2% according to market reports. Further, in the UK, their current offerings are a mix of products from Waitrose and own brands. Its agreement with Waitrose expires in 2020 and the company has announced a new joint venture with M&S. As part of the deal, M&S will buy a 50% share of Ocado’s UK retail business.
- Given these developments, the company’s exposure to animal proteins is relatively low (both in terms of revenues and market influence).
- While this issue may not be the most material, it is one that impacts near 40% of their grocery portfolio currently and could have material impacts to its business in the future. While the company is responding through product innovation with a wide selection of plant-based products, there isn’t a focus on sustainable sourcing of animal proteins currently.
- The company has the opportunity to build on its work to expand product choices and increase plant-based foods consumption with a strategic plan (such as category-based targets) to ensure that its expansion is not linked to a high growth in animal protein portfolio.
The report is a fair reflection of both where Ocado is and also the meeting/discussion we had.