The Digital Wine Ventures Ltd (ASX: DW8) share price rose by more than 2% this morning after the company announced that its wine shipments have blasted up over 1,000%, month-to-month.
The Digital Wine share price has soared by more than 14% over the past month.
A growing customer base
Digital Wine aims to identify and invest in early-stage technology-driven ventures that have the potential to disrupt and digitally transform segments within the global beverage market. The company supports these ventures providing access to capital, expertise and share services.
Since its last company update, Digital Wines has racked up 16 new customers. The business recently acquired Wine Delivery Australia, which is presently being rebranded as WineDepot. Nearly half of the new customers gained through the acquisition are McLaren Vale-based wineries.
Commenting on this, CEO Dean Taylor said, "McLaren Vale is a prime example of how word of mouth, positive testimonials and customer referrals have helped us develop a dominating market share in a very short amount of time."
WineDepot shipped close to 25,000 cases in December 2020. December 2020 orders in total came in at 12,884, a 113% increase over November 2020.
The Wine Delivery Australia acquisition
Upon completion of the Wine Delivery Australia acquisition announced 30 November 2020, WineDepot added an additional 180 new brands to its platform.
The essence of the Wine Delivery Australia service is to dispatch orders directly from cellar doors to customers. This saves money by cutting out the need for a mainstream carrier. This 'door-to-door' service was a new offering for WineDepot, enhancing the company's value proposition by breaking into new territory.
Mr Taylor commented on the acquisition:
While it's a relatively small acquisition, I expect the synergies, value proposition improvements and customer relationships will generate a lot of value for DW8 shareholders in due course. It also shows the potential for us to accelerate the development of the WINEDEPOT business through carefully selected strategic acquisitions.
At the time of writing, Digital Wine shares are swapping hands for 4.8 cents. The current Digital Wine share price gives the company a market capitalisation of $74.99 million.
