- Online wine business Digital Wine Ventures (DW8) shares are up today following a company update on July
- DW8 has completed the Parton Wine Distribution purchase and plans to open a warehouse in Adelaide to combine its South Australian operations
- WINEDEPOT’s Logistics division set a record in July, shipping more than 30,000 cases and it is planning to launch on eBay and Amazon by September
- Notably, the company has seen strong demand in Sydney and Melbourne despite the current lockdowns
- Digital Wine is up 4.17 per cent, trading at 7.5 cents per share at 11:02 am AEST
Online wine business Digital Wine Ventures (DW8) shares are up today following a company update.
Parton Wine purchase
Digital Wine has completed Parton Wine Distribution purchase and is expanding in Adelaide.
Last month, the company announced it will purchase Parton Wine Group, one of Australia’s largest specialist wine and beverage logistics providers.
Digital Wine has now completed this purchase, which is expected to provide a significant lift across WINEDEPOT’s key performance metrics.
The company’s WINEDEPOT’s logistics division is opening a directly
controlled warehouse in Adelaide in Edinburgh Parks.
The expansion of the business into the new facility will allow WINEDEPOT to combine its South Australian operations, which were spread across two sites after the acquisition of Wine Delivery Australia late last year.
Notably, Digital Wine will also be able to service customers from the recently purchased Parton Wine Distribution business.
The WINEDEPOT’s Logistics division set a new record in July, shipping 30,468 cases.
“This volume was generated on the back of 14,296 orders, equating to an average of 2.13 cases shipped per order,” the company explained.
Over the month, the company recorded 24 new suppliers to WINEDEPOT.
Despite lockdowns in both Sydney and Melbourne, there have been trade buyers and generated orders on WINEDEPOT Market.
Digital Wines CEO Dean Taylor said he was pleased with the first two months of market’s trading performance.
“Despite the uncertainty and disruption associated with ongoing lockdown restrictions in NSW and Victoria, we have managed to sign up more than 300 venues and generate pleasing levels of orders,” he said.
“While the lockdowns have undoubtedly delayed our penetration of the Sydney and Melbourne markets, we are very comfortable with the growth rates achieved so far and excited about the potential to scale customer acquisition rapidly once the current restrictions lift.
“We are also reassessing our go-to-market schedule with a view to launching in markets which are not locked down, such as Adelaide, Brisbane and Perth, earlier than expected.”
“Fortunately for us, our business has significant exposure to the direct-to-consumer market which tends to spike from an increase in home alcohol consumption during lockdowns.
:The silver lining for us is that any delay in B2B growth is offset by increased activity across the rest of our platform,” Mr Taylor concluded.
Digital Wine was up 4.17 per cent, trading at 7.5 cents per share at 11:02 am AEST.