Digital Wine (ASX:DW8) share price rises as wine shipments boom

The Digital Wine share price is rising after the company announced that its wine shipments have rocket by more than 1000% month to month. We take a closer look.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »