With skilled management, key partnerships, a strong pipeline of customers, this emerging technology company is aiming to digitally transform the global wine industry by providing end-to-end supply chain solution that is easier, cheaper and quicker than current solutions. Here, we are referring to Digital Wine Ventures Limited (ASX: DW8), which is an Australian company led by start-up and wine industry veteran Mr. Dean Taylor.
The Company’s cornerstone investment WINEDEPOT, a cloud-based SaaS platform acquired in May 2019, provides the wine industry with an integrated trading, order management and logistics solution designed to reduce costs and administration. WINEDEPOT also expects that the platform will help both suppliers and retailers increase direct-to-consumer and online sales by offering a national same and next day delivery service.
With WINEDEPOT being the highlight of the period, DW8 recently released its quarterly update of activities undertaken during the three-month period ending 30 September 2019. The breakthrough WINEDEPOT was officially launched at a major wine industry event held on 17 September 2019, wherein the Company’s CEO, Mr Dean Taylor presented the platform in front of 150 senior wine industry leaders.
WINEDEPOT’s New Partnerships
On 1 July 2019, the Company partnered with Australia Post which is already enabling it to establish a strong network of depots in Australia well ahead of the schedule it charted out, with substantial saving in both capex and time thereby allowing DW8 to explore ways to expand the platform into other markets early next year, such as China, UK, Singapore, New Zealand and the USA.
While the Australia Post partnership would enable the Company to transform the existing wine supply chain, its partnership with Wine Storage and Logistics Pty Ltd, logistics services provider to global beverage and wine industry, would allow DW8 to establish a dedicated central storage and distribution facility. This facility would be WINEDEPOT’s main depository for supplier’s inventory to support an expanding network of ‘depots’ and serve as the local depot servicing the Adelaide market.
WINEDEPOT’s Strong Pipeline Of Potential Customers
Validating the need for a disruptive supply chain solution such as WINEDEPOT, the Company recently onboarded Australia’s largest and most successful family-owned wine business, Casella Family Brands as a customer of WINEDEPOT’s integrated logistics, trading and order management platform.
Under the agreement, WINEDEPOT will ensure effective management of fulfillment of the product portfolio of Casella Family Brands across a range of domestic channels.
To read more about this significant addition to DW8’s portfolio, READ HERE.
DW8 confirmed on 26 September that over 150 suppliers had expressed their interest in utilising WINEDEPOT’s smart logistics platform; since then the number has grown to over 200.
WINEDEPOT’s Strategic Partnerships
DW8 has also announced that WINEDEPOT has developed strategic integration partnership with a range of companies that provide software to wineries. This allows them to reduce the time it takes to onbaord new customers and increases their ability to rapidly scale the platform.
These strategic integrations will also provide the perfect foundation to expand the logistics and trading platform into other markets such as the New Zealand, USA, South Africa, & Canada. It has also signed up with smaller-scale wineries:
WINEDEPOT Strengthens Executive Team
On 9 October 2019, DW8 announced the appointment of two well-respected and highly experienced wine industry professionals to the WINEDEPOT executive team Mr Richard Van Ruth, a seasoned wine professional with over 25 years’ of experience as Business Development Manager, and Ms Anna Donald with over 10 years’ experience across operations, account management, buying, customer service and supply chain management within wine and FMCG industries, as Inventory & Operations Manager.
More recently Mr Paul Evans, a wine enthusiast and Chairman of the Elderton Wines Advisory Board with 27 years of private equity experience, joined the DW8 Board as a Non-Executive Director, effective 1 November 2019.
Together with the recent addition of James Walker, a seasoned executive with a track record in sucessfully commercialising cutting-edge technology in emerging markets, the DW8 Board is looking in much better shape to support CEO Dean Taylor in achieving his vision for WINEDEPOT.
WINEDEPOT to start generating revenue in Q2 FY 2020
Mr Taylor believes that the platform is likely to start onboarding customers and generate revenue in the 2nd quarter of FY 2020, by providing wine producers, distributors, importers and retailers access to an end-to-end supply chain solution that incorporates a range of services including fulfillment fees, storage and slot fees, surcharges and SaaS fees.
The launch of B2B marketplace is expected to generate additional revenue from Trading fees for processing orders.
The key revenue drivers for the WINEDEPOT segment are:
- Number of suppliers – using the platform;
- Number of products – distributed in the network;
- Quantity of inventory – stored in the network;
- Volume of orders – processed and fulfilled;
- Number of sales channels – connected to the platform.
At the end of the quarter, DW8’s maintained its cash and cash equivalents at $497,393.
Stock Performance On ASX
On 1 November, DW8 is trading at $0.008 with a market capitalisation of $6.26 million and ~893.82 million shares outstanding (02:35 PM AEST).
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