- Shares in Digital Wine Ventures (DW8) have climbed more than 20 per cent this morning after it revealed a new partnership with Bibendum Wine
- Wine importer Bibendum will list part of its portfolio on Digital Wine Ventures’ WINEDEPOT MARKET, inviting its customers to join the platform through a referral program
- Bibendum will receive a marketing fee from WINEDEPOT as well as a referral fee for each trade buyer introduced
- Once the partnership has been verified as a success by an auditor, Digital Wine Ventures will issue 20 million fully paid ordinary shares to Bibendum
- Digital Wine Ventures is up 24.14 per cent to $0.18 per share
Shares in Digital Wine Ventures (DW8) have climbed more than 20 per cent this morning after a partnership with Bibendum Wine was revealed.
Established in 2004, wine importer Bibendum represents 160 local and international wine producers, with a focus on sought-after, ultra-premium brands from across Australia, New Zealand, France, Italy, Spain, Portugal, Germany, Austria, Hungary and South Africa.
According to the agreement, Bibendum will list a significant portion of its portfolio on Digital Wine Ventures’ distribution platform WINEDEPOT MARKET, inviting its customers to join through a referral program that includes an incentive voucher for first purchases.
These vouchers will be distributed to trade buyers as part of the staged roll out of WINEDEPOT MARKET.
In an effort to simplify the on-boarding process for these trade buyers, the two companies will integrate their platforms so that new customer accounts can be more easily created. While Digital Wine’s chief executive Dean Taylor believes that this will result in higher customer numbers, it means that the partnership will not begin until late April.
“While we will go ahead with the planned ‘soft’ launch of MARKET in late March, access will be initially restricted to a very small group of buyers who will be given the task of trying to break the system,” said Taylor.
“Only once we are satisfied our ecommerce site, enabling technology systems and supporting logistics infrastructure is robust enough for rapid scaling, will we start inviting customers onto the platform one market at a time.”
In recognition of the investment in technology, promotion and management costs, WINEDEPOT will pay a marketing fee to Bibendum as well as a referral fee for each trade buyer introduced.
In addition, and should the partnership prove to be a success, Digital Wine Ventures will issue 20 million fully paid ordinary shares to Bibdenum.
For this to occur, however, an auditor will need to verify that Bibdenum has listed at least 280 products on MARKET prior to the launch, sent incentive vouchers to at least 4000 leads, activated at least 800 of these leads using the vouchers and generated at least $800,000 in sales.
“This partnership allows us to leverage Bibendum’s unique product range, highly experienced sales force, long-term customer relationships and revered presence within the industry to drive rapid awareness of the benefits that our marketplace provides to trade buyers,” Taylor continued.
“Their powerful influence over key stakeholders within the wholesale buying community should allow us to develop a powerful audience of qualified buyers to drive sufficient demand to support the hundreds of suppliers on the other side of the marketplace.”
Digital Wine Ventures is up 24.14 per cent to $0.18 per share at 11:40am AEDT.