The 21 products in its Everyday range are a selection of staples including meat, ready meals and dairy products, and mark a departure from its current strategy of selling Waitrose own-label groceries alongside household brands.
The Everyday range will, crucially, be cheaper than Waitrose own-label, and will include Tulip sausages at 99p, Moy Park chicken at £2.99/kg and Kitchen Classics chicken tikka masala & rice for £2.19. The range is being supplied by existing Ocado suppliers including Dovecote, Moy Park and St Ivel.
Ocado plans to add more products to the Everyday range in the new year, including fruit and vegetables.
"Over the past 12 months, in response to customer comments, Ocado has enhanced its price proposition, range and policies on explaining the shelf life of products bought.
"Everyday complements those developments and is expected to expand rapidly in 2009," said Ocado finance director Jason Gissing.
"In March we were quick to spot the early signs of recession, introducing Tesco Price Match on branded goods to give increasingly cost-conscious shoppers improved value. Our new Everyday range improves that value further still."
Gissing said the latest move was designed to help customers who were having to cut back because of the recession.
"It's not just about discounting, it's about more choice. Waitrose has the most trusted supermarket brand in the UK according to Which? But we know our customers want more choice."
Lucy Neville Rolfe, corporate affairs director at Tesco, said it was a compliment that Ocado wanted to emulate the Discounter range.