Digital Wine Ventures achieves solid January sales while NZ expansion gathers momentum

Digital Wine Ventures ASX DW8 WineDepot February 2021
Digital Wine Ventures’ WINEDEPOT division processed 7,408 orders in January 2021, which was an increase of 605% on January 2020 levels.

As its expansion into the New Zealand market gathers momentum, Digital Wine Ventures (ASX: DW8) has posted another solid month of sales with its WINEDEPOT division shipping 15,764 cases in January 2021 – up almost 730% on January 2020.

Meanwhile, orders processed in January 2021 reached 7,408 and were 605% higher than January last year.

Digital Wine Ventures pointed out this equated to an average 2.13 cases shipped per order, which is an increase on the average 1.85 cases per order over the past 12 months.

Commenting on the result, Digital Wine Ventures chief executive officer Dean Taylor noted that January is typically one of the quietest months for wine sales.

“The fact that we were up so significantly on the prior year and only down just over one third on our peak cases shipped in December demonstrates the underlying growth in our logistics business.”

He added it won’t be long before the company is back to setting new sales records.

New Zealand expansion

As part of Digital Wine Ventures’ global growth strategy, it is currently expanding into New Zealand.

During January, the company claims this push gathered momentum, with 11 new customers onboarded to WINEDEPOT.

Only three of these customers were from Australia with the remaining from New Zealand.

The New Zealand customers included Giesen Wines, Framingham Wines, Ash Ridge Wines, Decibel Wines, Domain Road Vineyard, Native Hard Sparkling, Tony Bish Wines and Zeffer Brewing.

Direct-to-trade marketplace

In the direct-to-trade marketplace, WINEDEPOT has released its rate card, revealing it will charge 10% of the wholesale price.

WINEDEPOT will also release payment 30 days end-of-month.

However, if suppliers want to take advantage of WINEDEPOT’s payment accelerator service, they will be charged an additional 2.5% of the sale price, but will receive payment within three days.

For buyers, there will be no commission paid, but they will be charged logistics fees at the standard rate.

Digital Wine Ventures pointed out its commission is below the 35% that liquor distributors generally charged.

“The savings offered together with the ability to get paid within three days is expected to make the market very attractive to suppliers of all scales,” the company added.

Additionally, to encourage further suppliers to come on board, WINEDEPOT is offering to waive storage, listing and handling years until the end of the year if they sign-up before 30 June 2021

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