Beverage supplier Digital Wine Ventures (ASX: DW8) has reported new sales records for its online platform WineDepot for the three months ending 31 March.
In its latest quarterly, the company said WineDepot had processed 29,174 orders during the period, representing a 627% increase on the same quarter in the last financial year.
The total number of cases shipped over the quarter also set a new record at 61,939 – up a massive 696% on the previous corresponding period and 37% on the last quarter’s total of 45,252.
Revenue was also up this period by 431% to $768,458 and will be buoyed by 63 new suppliers and a number of new brands added to the platform since December.
The most lauded of these has been fine wine and beverage distributor Bibendum, which represents 160 local and international wine and craft spirit producers from the United Kingdom, Scotland, Ireland, Japan, United States, Mexico, Italy, France and Australia.
Quiet time of year
Digital Wine Ventures chief executive officer Dean Taylor was pleased with the strong quarterly results at what is usually a quiet time of year.
“Historically, the January to March trading period is extremely quiet in the wine and beverage industry [so] to see our order and case volumes exceed previous record levels this early in the year provides a clear indication of the underlying organic growth in the [WineDepot] business,” he said.
“It has been a great start to the calendar year and has occurred without any input from the [business-to-business] marketplace which we are yet to officially launch.”
South Australia presence
In January, WineDepot was servicing 65 of the estimated 74 cellar doors and 160 vineyards in the McLaren Vale region of South Australia.
Mr Taylor said the achievement was a “prime example” of how word-of-mouth, positive testimonials and customer referrals can help develop a dominating market share in a short amount of time.
“We expect to see similar penetration levels in other markets and regions as the grassroots efforts made building relationships with regional icons start to pay dividends,” he said.
In February, WineDepot partnered with global wine app and online marketplace Vivino Hong Kong Limited, providing Australian wineries with an option to list their products for sale without having to set up an account, monitor inventory or manage order fulfilment.
Orders generated from Vivino are picked, packed and delivered by WineDepot, allowing Vivino’s community of users to purchase across multiple suppliers at the same time while taking advantage of same and next day delivery services where available.
At the end of March, WineDepot secured a partnership with Direct Couriers (Australia) to develop a dedicated delivery fleet to fulfil trade and on-demand orders in the major metropolitan areas.
The deal will also allow WineDepot to provide a level of service for orders generated on its planned direct-to-trade marketplace, regardless of what levels of congestion may exist in the broader freight network.