Procter & Gamble has made a $7.5 million investment in Ocado, an online grocer operating in the U.K. With its investment, P&G now holds a one percent stake in the company.
A P&G spokesperson, Damon Jones, told The Cincinnati Enquirer that the consumer packaged goods giant has been a supplier to Ocado since 2000 and is looking at its investment as a means to "learn to better communicate with consumers and deepen our knowledge of Internet shoppers."
Mr. Jones added, "We see their business model as a fertile testing ground for new ideas."
P&G's investment in Ocado follows another test selling products directly to consumers through theessentials.com. The website, which is owned by Field Companies Inc., sells P&G products exclusively.
Discussion Questions: What do you make of P&G's investment in Ocado? What will it learn and how will it help it in other sales venues either online or in stores?