UK supermarket operator Waitrose has extended its supply relationship with online grocer Ocado by signing a new ten year agreement, which will run until September 2020.
Under the terms of the new agreement, Ocado will have the right to sell Waitrose goods for the next 10 years as it has done since 2002 and can continue to use the Waitrose brands on its website and on its fleet of more than 700 vans.
Commenting on the deal, Tim Steiner, Ocado CEO, said: “We are delighted to announce an extension of our relationship with Waitrose. Waitrose is a fantastic brand and a great partner with whom we have worked so successfully together for the last decade.
“This new agreement enables both sides to continue to grow and benefit from the relationship. In areas where Waitrose and Ocado trade together, we have both grown significantly ahead of our competition. Our customers have shown both of us how much they value the relationship between Waitrose and Ocado.”
Waitrose managing director Mark Price said: “Waitrose and Ocado have worked well together for many years and are complementary businesses with a shared passion for high quality food, outstanding customer service and great value. This new agreement paves the way for another long period of growth together.”
Ocado, which launched its online grocery service in 2002, lists over 20,000 product lines in conjunction with Waitrose and the retailer’s parent company John Lewis.
According to recent data from Kantar Worldpanel for 12 weeks ending 18 April 2010, Waitrose, which operates 228 stores in the UK, is achieving year-on-year growth of 11.7 per cent and increasing its market share to 4.1 per cent.
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