Digital Wine Ventures (ASX: DW8) posted an updated regarding its cornerstone WineDepot business, reporting record monthly orders for October.
During October, WineDepot shipped 9,749 cases, which was 34% higher on September’s figure of 7,265.
Despite recording a slight decline in the average number of cases shipper per order from 1.8 to 1.7, WineDepot experienced received a sharp increase in the amount of smaller orders.
As well as the record shipments, orders also hit new highs – with WineDepot revealing a 23% rise to 5,817, which beat the previous September record.
Since November last year, WineDepot’s sales have continued to grow.
WineDepot was launched in September 2019 as a cloud-based wine distribution business and a “breakthrough platform” offering vertically integrated trading, order management and a dedicated logistics service.
The ultimate aim of the business is to connect producers directly with consumers and be able to reach a global market worth over $1 billion per year.
One of the company’s innovations was to mastermind a nationwide network of temperature-controlled storage facilities for Australian wine and beverages in partnership with logistics company Border Express.
According to Digital Wines Ventures chief executive officer Dean Taylor, the WineDepot platform unifies a trifecta of components, namely, a direct-to-trade marketplace, an order management system and a smart logistics solution with key benefits for users including better customer reach, raised profit margins, lower costs and faster shipping times.
For trade buyers, WineDepot serves up a range of additional benefits including single invoice, delivery and flexible payment and credit options.
The new relatively new business generates various revenue streams through seamless wine sales across Australia and provides the wine industry with an end-to-end supply chain solution which includes fulfilment, storage and surcharge fees.
New brands added to the platform
Since its last quarterly update, WineDepot welcomed 14 new customers, which collectively bring 57 new brands to its sales platform.
Some of WineDepot’s new customers include Australian producers such as Cupitt’s Estate and Howard Park, in addition to Kiwi producer Akarua.
In a potentially novel move, WineDepot will also stock Invivo & Co’s products, a New Zealand-based wine and gin producer that distributes several award-winning “celebrity-branded” labels such as Graham Norton Wines and Gin, as well as, US actress Sarah Jessica Parker’s unique Invivo X brand.