Digital Wine Ventures revels in record November orders after acquiring industry peer

Digital Wine Ventures ASX DW8 WineDepot November 2020 orders
WineDepot shipped more than 10,000 cases and welcomed 12 new customers in November.

Just days after sowing up a buyout of wine industry logistics provider Wine Delivery Australia for $2.4 million, Digital Wine Ventures (ASX: DW8) published an update declaring that its shipments continued their record uptrend.

WineDepot is a cloud-based SaaS technology platform that facilitates direct-to-market wine sales across Australia, which its developers claim it provides value by removing layers of inefficiency in the supply chain.

The platform launched in September 2019 and was regarded as a success after picking up steady customer growth every month. The cloud-based wine distribution platform also offers vertically integrated trading, order management and a dedicated logistics service.

According to its founders, the ultimate aim of the business is to connect producers directly with consumers and reach a global market worth over $1 billion per year.

WineDepot continues to expand

WineDepot shipped a total of 10,570 cases of wine in November, up 8% compared to October’s tally of 9,749.

The platform welcomed 12 new customers last month including Frazer Woods Wines, Jacob’s Creek, Starrs Reach Vineyard and Terranu Wines.

In a repeat of last month’s performance, the company said it achieved another record month and could have possibly extended its sales tally if not for several orders being placed in “heat holds”.

DW8 November 2020 orders chart
WineDepot’s total orders processed and cases shipped.

At the request of its customers, Digital Wine Ventures placed an unspecified number of cases in specialised storage facilities due to blistering hot temperatures recorded across Australia in recent weeks.

Despite all heat hold orders eventually being shipped, albeit with a delay, they could not be included in the company’s regulatory reporting for November.

However, Digital Wine Ventures did reveal that it ships an average of 1.75 cases of wine per order, with this metric also growing compared to October’s figures.

Acquisitional outperformance

Following acquisition of market peer Wine Delivery Australia, Digital Wine Ventures provided an operational update on its new business unit, declaring that it had “outperformed” earlier guidance provided last week.

According to Digital Wine Ventures, the acquisition could only be officially completed at the end of November with the numbers provided characterised as “pre-acquisition” and therefore not part of the company’s sales.

The wine merchant said it would release consolidated numbers from next month onwards, although, in a press statement, the company confirmed that Wine Delivery Australia “set a cracking pace” in November.

From the provisional figures provided, Wine Delivery Australia completed 9,462 orders and shipped 17,562 cases of wine which is around 40% better than WineDepot’s monthly total.

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