Ocado in talks with agencies as Heresy resigns ad account

Heresy, the Chime-owned integrated agency, has resigned the advertising account for Ocado, the online grocery service backed by the supermarket chain Waitrose.

Ocado has approached a number of unnamed agencies about its creative account but is not thought to have finalised a shortlist.

Heresy was first appointed to handle the company's above- and below-the-line advertising in 2001 after it spent a year working on all aspects of the company's development and communications before the launch.

Heresy decided to terminate the relationship after the online grocery store changed the agency's contract from retained status to a project basis in December. The two sides had failed to agree fees under the new agreement.

Anne Yeoman, the Heresy managing director, said: "The agency is fiercely proud of the work it has done for Ocado, but sadly, like all good things, the relationship has come to an end. The decision is financial rather than emotional and was reached mutually."

Heresy's latest work is a multimillion-pound ad campaign running on radio, press, direct mail, online and outdoor. The campaign follows the expansion of Ocado's delivery service beyond central and greater London to include the area inside the M25.