Express Dairies, Britain's largest milk seller, is on the verge of a venture which could see up to 40% of homes receiving a range of home-delivered goods from their milkman.
Following weaker than expected year-end results, the company confirmed that it was in talks with "a number of companies in the new economy sector".
A spokesman said the company was exploring the possibility of "using our fleet of delivery vehicles to distribute products ordered through 'new economy' channels such as interactive TV and the internet".
Express and other dairies have long sought a way of reversing the decline of doorstep deliveries, but chief executive Neil Davidson said revenue projections would be at the con servative end of the scale. Express, which controls more than 20% of the milk production and distribution market in England and Wales, saw pre-tax profits slump 11% to £52m from £60m in 1999.
Express said profits had been affected by difficult trading conditions, including the strong pound and a £6.6m increase in pension costs. A final dividend of 8.4p is expected, up 1% on last year. Total sales were up 16.9% to £928m. Express' share price closed down 8.5 at 77p yesterday.
