The global wine business is worth $300 billion, with a CAGR of ~5.8%. Australia is an active part of the growing bandwagon of nations developing the wine business and produces ~$6 billion worth of wine and is growing at rate of ~3.6% per annum, with its 2,500 wineries. With the growth trajectory of the wine business globally, the digital environment has become a significant medium for producer, supplier and consumer interaction, as technological innovations are evidently changing the way consumers interact with products, companies and brands.
An evolving technology company groundbreaking the global beverage industry under the esteemed leadership of start-up veteran and wine enthusiast CEO Dean Taylor is Digital Wine Ventures (ASX: DW8). The Company’s goal is to identify and invest in early stage technology-driven ventures and provide them with access to capital, expertise and shared services.
Its cornerstone investment and B2B marketplace, WINEDEPOT, which was successfully acquired in May 2019, provides an end-to-end supply chain solution for the wine industry. It is a cloud-based SaaS platform that provides the leverage to avail order management and an integrated trading and logistics solution. Consequently, these reduce the costs and administration, while helping retailers and suppliers alike, boosting DTC and online sales.
In today’s article, we would briefly browse over significant events that occurred over the 12 months at Digital Wine Ventures (as laid down in the Company’s recent Annual Report Presentation)-
Launch of WINEDEPOT
Launched at a major wine industry event- Wine Industry IMPACT Conference, held in Orange NSW on 17 September 2019, WINEDEPOT had over 150 suppliers expressing their interest in utilizing the platform, at the time of the launch. As reported on 30 September 2019, this number had grown to 200. The platform consists of 3 components- operating platform, logistics solutions, and B2B Marketplace.
For more insight to this platform- READ HERE.
New on Board
The Company welcomed two seasoned and experienced professionals as Non-executive Directors- Mr Paul Evans and Mr James Walker this year. Moreover, to progress the development of the new business stream, Ms Anna Donald and Mr Richard Van Ruth were on boarded as Business Development Manager and Inventory & Operations Manager, respectively.
For more insights to DW8’s robust management team- READ HERE.
DW8 and specifically WINEDEPOT have been growing significantly at the back of a robust existing and an even solid pipeline of strategic partnerships. In July, WINEDEPOT partnered with Australia Post to create a distribution service, and shortly after, Wine Storage and Logistics Pty Ltd was in loop to establish a major wine storage and distribution center. A milestone was recorded with the on boarding of Casella Family Brands, Australia’s largest family owned winery, who signed up in October, wherein WINEDEPOT will manage Casella’s entire product portfolio across a range of domestic channels.
Besides these, several other smaller scale wineries were confirmed to be using WINEDEPOT’s services, Gatch Wines, Maan Wines and Redman Wines being few of them.
For more insights to WINEDEPOT’s customers- READ HERE.
Financial Front- Capital Raise, First Orders and Revenue Generation
In DW8’s September 2019 Quarterly Report, Mr Dean Taylor had confirmed that WINEDEPOT was likely to onboard customers and generate revenue in the 2nd quarter of FY 2020. In November, the platform successfully processed its first wave of orders, indicating that revenue generation will commence soon, in line with management’s expectations.
Moreover, the Company witnessed a successful capital raise of $1 million in October, from a private placement to sophisticated investors and from director participation. Funds raised under the Placement were targeted towards technology R&D, additional human resources, marketing and advertising and general working capital.
Recently, the Company announce that it has signed its first craft spirit customer, Vodka Plus, marking its entry into the spirits market, which has an addressable market of ~$5.3 billion per annum.
For more insights to WINEDEPOT’s revenue generation- READ HERE.
The Company is undertaking a 1 for 10 pro rata non-renounceable rights issue to qualified shareholders of ~102,115,978 ordinary shares to raise $612,000 (before costs). In a recent update, DW8 announced that it has resolved to extend the Closing Date for acceptance of applications for its current Rights Offer:
For more insights to the Replacement Prospectus, READ HERE.
Share Price Information
DW8 settled the day’s trade at $0.007 on 6 December 2019. It has a market cap of $7.15 million and the stock has generated a year to date return of 40.99%.
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