Procter & Gamble to boost web capability

Procter & Gamble wants a better understanding of its customer base

Consumer goods group Procter & Gamble (P&G) has acquired a stake in online retailer Ocado in a strategic move designed to enhance its own consumer-focused web strategy.

The £5m acquisition of a one per cent stake in the battered internet start-up is aimed at using Ocado's business model and expertise as a testing ground for a range of communication ideas, and to improve shopper understanding, P&G said in a statement.

"These findings will provide valuable insights as we strive to better connect with consumers, improve our communications and strengthen our brand web sites," the company explained.

The investment is good news for loss-making Ocado, which sells Waitrose goods over the web. The John Lewis Partnership was a majority shareholder in the company, but has diluted its stake in the firm to 24.1 per cent despite recently agreeing to keep supplying it with Waitrose food for the next five years at least.

Despite providing a much-needed cash injection, P&G denies the possibility of any involvement in the operational running of Ocado.

"We have just signed the agreement, so it's early days in terms of defining our work together. P&G will not be involved in the day-to-day management of Ocado's business, nor do we have visibility of trading terms or relationships with other suppliers," P&G said.

"We fully respect the confidentiality of trading information and intellectual property valued by all our retail partners, and this is no exception."