The Digital Wine Ventures Ltd (ASX: DW8) share price is rocketing today. At the time of writing, shares in the online alcoholic drink vendor are selling for 9.9 cents apiece, up 6.45%, after opening at a high of 10.5 cents each. By comparison, the All Ordinaries Index (ASX: XAO) is up 0.5%.
The price rise comes after the company released impressive sales figures for May and announced a new deal with Amazon.com, Inc. (NASDAQ: AMZN).
Let’s take a closer look at today’s news.
Why the Digital Wine share price is rising
May sales figures
In a statement to the ASX, Digital Wine Ventures said cases shipped in May were up 619% on the previous year to around 25,200. Shipped cases are also up on the previous month by 9.9%. However, this figure is still slightly lower than its March record of 25,300. The Digital Wine share price crashed on its lower sales in April.
The company also says approximately 11,700 orders were processed in May – up an impressive 23.4% on the previous month. Average cases per order did fall from 2.42 to 2.15.
The second piece of news out today is a partnership with Amazon.
Digital Wine says it provides wine suppliers using Amazon’s integrated trading, logistics, and payment solutions the ability to make their products available for sale on its Australian marketplace by simply clicking a single checkbox.
WineDepot, a Digital Wine subsidiary, will manage product storage and packing, according to the statement. Amazon’s fulfilment network will then be utilised to deliver the products ordered on Digital Wine’s marketplace to the customer.
The company says it expects to release further details on the partnership soon.
Digital Wine share price snapshot
Over the past 12 months, the Digital Wine share price has increased more than 1,200%. However, it’s down 50% since hitting a record high of 21 cents in mid-April. Last month, Digital Wine announced it would be expanding into the bBuy now, pay later (BNPL) industry.
Given its current valuation, Digital Wine Ventures has a market capitalisation of $179 million.