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Digital Wine Ventures (ASX:DW8) - CEO, Dean Taylor - The Market Herald
CEO, Dean Taylor
Sourced: WBM Online
  • Digital Wine Ventures (DW8) says its WINEDEPOT business is still up and running, despite the new government lockdown measures
  • The company says this is due to its partnership with Australian Post
  • Due to the uncertain crisis facing the Australian wine industry, Digital Wines will be providing Australian producers with a support package
  • Digital Wine said it is on track to process a record number of orders in March, as there has been a high demand for alcohol home delivery
  • The company also reported that its first spirits customer, Vodka+, has experienced a 400 per cent sales growth since signing with WINEDEPOT
  • Vodka+ has called the platform the "one of the biggest breakthroughs in Australian alcohol"
  • Digital Wine is up 20 per cent on the market today, trading for 0.6¢ per share

Digital Wine Ventures (DW8) says WINEDEPOT remains up and running, despite the new government lockdown measures.

Fully operational

The company says its logistics business will remain fully operational, despite the non-essential services shutdown measures recently implemented by the Australian Government.

CEO Dean Taylor believes that WINEDEPOT's partnership with Australian Post is an important asset for the company to have at a time like this.

"Our depots are embedded into Australia Post distribution centres. Those centres are an essential part of the infrastructure required to keep their Australian transport and logistics network operational," Dean said.

“I have spoken to senior executives at Australia Post and they have reiterated that they will remain fully operational across the whole country during government restrictions on non-essential activity," he added.

Support package for Australian wine producers

Due to the uncertain crisis facing the Australian wine industry, the company will provide producers with a support package of highly subsidised services to help them maximise their ability to trade during this challenging time.

Dean says that never before have Australian wine producers faced a challenge like this.

"Already reeling from the impact of bushfires, smoke taint and a low yielding vintage, many wineries have been dealt another major blow as their export, trade distribution and cellar door markets have collapsed overnight," Dean explained.

"For many producers, the only option they have left available is to try and maximise sales via their website, mailing list and wine clubs," he said.

Digital Wine said it is helping wineries by increasing their exposure to the market without having to go through a retailer.

The package is for Australian owned and operated wineries and includes a $500 fee credit, 3 months free storage, free initial stock transfer into bulk storage, delivery from $7.95 per case and a waived platform access.

WINEDEPOT on track to process a record number of orders

Digital Wine said it is on track to process a record number of orders in March, as there has been a high demand for alcohol home delivery.

Dean is confident that the online and direct-to-customer orders will rise in the coming months due to the entire hospitality industry (including pubs, clubs, restaurants), casinos and cinemas are closing down.

“Everyone has started to realise that there’s a very high chance that they will be locked in their houses for the next few months. With little opportunity to socialise at external venues, there is no doubt that the volume of liquor consumed at home will rise dramatically," Dean said.

“So far online retailers have soaked up much of this additional demand, however, I expect producers to target this market more aggressively as they realise that it is one of the few channels left where they can continue to generate sales right now," he added.

Foundation customer experiences 400 per cent growth

The company also reported that its first spirits customer, Vodka+, has experienced a 400 per cent sales growth since signing with WINEDEPOT.

The Australian vodka company signed in November 2019 and has called the company one of the "biggest breakthroughs in Australian Alcohol."

“We tried online, but in the past orders often took several weeks to be delivered," Vodka+ CEO Marko Pavasovic said.

"Going to the store has been the only last-minute option, which has been a limitation of the whole industry. That’s why WINEDEPOT is probably one of the biggest breakthroughs in Australian alcohol," he added.

Vodka+ launched in 2015 and addressed a clear gap in the market for alcoholic beverages that were low-calorie, gluten free and sugar-free, catering to the growing health trends from keto diets to calorie-counting.

Marko said with WINEDEPOT, the company has every chance to suceed alongside the bigger industry players.

“We’re all about challenging the norms and looking for new and innovative ways of thinking," Marko told the market.

Dean says the growth rate seen by Vodka+ shows the potential the platform has.

“Once the alcohol industry realises the long-term value that this provides, I expect even the biggest brands will leverage direct-to-consumer sales channels to take control of and grow their brands," Dean added.

Digital Wine is up 20 per cent on the market today, trading for 0.6¢ per share at 11:03 am.


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