Online beverage supplier Digital Wine Ventures (ASX: DW8) more than doubled its revenue in the 2020 financial year as it continued its strategy in providing end-to-end supply chain solutions for wine producers, distributors, importers and retailers.
The company’s FY 2020 report revealed revenue of $566,141 – a 139% increase on 2019.
For the same period, Digital Wine Ventures posted a full-year loss of $2 million. This was attributed to costs involved with the launch of WINEDEPOT and the closure of the company’s operational arm in China.
Digital Wine Ventures has been riding a wave of momentum throughout 2020, beginning with WINEDEPOT’s maiden revenue of $84,250 in January, on the back of 19 wineries joining the platform.
By early May, WINEDEPOT was signing up customers in record numbers, with 12 coming on board in April alone – including esteemed Clare Valley winery Jim Barry Wines, which was named Winery of the Year in the 2020 Halliday Wine Companion Awards.
And just last week, Digital Wine Ventures closed a successful share purchase plan, bringing the total raised through the SPP and a recent placement to $6 million before costs. A tick over 40 million new shares will be issued on Tuesday at $0.025 each.
After remaining stable below $0.01 for the first six months of 2020, Digital Wine Ventures’ shares have risen to as high as $0.042 in the past month, reflecting the company’s momentum.
Digital Wine Ventures chief executive officer Dean Taylor said the support from shareholders in recent months had been “absolutely overwhelming”.
“It shows the confidence that they have in our business and their desire to be part of this exciting journey as we set out to disrupt the global wine and beverage supply chain,” he added.
Wine supply chain solution
Digital Wine Ventures’ revenue is primarily generated through trading fees, fulfilment and subscription fees for its core asset WINEDEPOT, which is a cloud-based technology platform that has been designed to connect wine industry stakeholders to reduce time, margin and capital wasted in the existing supply chain.
The platform provides producers with the ability to hold inventory reserves in a network of depots located in major Australian capital cities.
The platform’s benefits include reduced freight costs and shipping time, less paperwork, administration, errors, breakages and working capital requirements.
For consumers, the service can offer same-day or next-day delivery of wines, and more recently, craft spirits.
Operational milestones in FY 2020
Underpinning the substantial increase in revenue for FY 2020 were several operational milestones during the period.
A key achievement was securing an exclusive partnership with Australia Post which facilitated the establishment of Digital Wine Ventures’ depot network across Australia.
Several other logistics and technology agreements have been secured in FY 2020 to assist with growth.
A liquor licence was collared in late January this year – allowing Digital Wine Ventures to launch the B2B Marketplace
Adding to its momentum, Digital Wine Ventures also signed several iconic wine brands including Henschke and McLaren Vale’s Mollydooker Wines in June.