The Digital Wine (ASX:DW8) share price storms 8% higher

Shares in the online drinks company raced higher today on acquisition news.

| 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 is flying more than 8% higher in today's trading session.

Shares in the online beverage supplier have been buoyant after the company released a market update earlier today.

Let's take a look at what Digital Wine announced.

A group of people clink wine glasses in an outdoor, late afternoon setting to celebrate the rising Treasury Wine share price

Image source: Getty Images

Market update fuels Digital Wine share price

The Digital Wine share price received a boost after releasing an exciting market update.

The company says it has successfully completed the acquisition of Parton Wine Distribution.  

In addition, Digital Wine noted plans to expand its presence in Adelaide by opening an additional warehouse in Edinburgh Parks.

According to the update, the new facility is a purpose-built wine bottling warehouse in Adelaide with storage and distribution features.

Digital Wine also notched up a new record. For the month of July, its Wine Depot logistics division shipped 30,468 cases.  

In addition, the company noted that 24 new suppliers have joined Wine Depot since the last company update.

Digital Wine also provided investors with an update on its integration with eBay (NASDAQ: EBAY) and Amazon (NASDAQ: AMZN).

According to the update, the company expects its eBay and Amazon integrations to go live in August and September respectively.

The company's management also highlighted the latent demand despite COVID-19 induced lockdowns.

Digital Wine CEO Dean Taylor said:

Despite the uncertainty and disruption associated with ongoing lockdown restrictions in NSW and Victoria, we have managed to sign up more than 300 venues and generate pleasing levels of orders. The feedback from users on both sides of our marketplace has been extremely positive and demonstrated there's latent demand for a solution like the one we've created.

Snapshot of Digital Wine

Digital Wine is an online beverage supplier that provides end-to-end supply chain solutions for wine producers, distributors, importers and retailers.

The company's Wine Depot business operates as a cloud-based software-as-a-service, providing a marketplace platform.

At the time of writing, the Digital Wine share price is trading more than 1.39% higher for the day at around 7.3 cents.

Shares in the online beverage company soared more than 8% higher earlier, having hit an intra-day high of 7.8 cents.  

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended eBay and has recommended the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short October 2021 $70 calls on eBay. The Motley Fool Australia has recommended Amazon. 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

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a tough start to the week for investors.

Read more »

A man in a business suit looks at a gold phone with his head in an exploding cloud of gold dust.
Gold

Newmont stock has plunged 17% in March. Here's why

This war has had an unusual effect on the price of gold.

Read more »

Broker looking at the share price.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

man looks at phone while disappointed
Broker Notes

What are analysts saying about ResMed, Downer, and Nuix shares?

They have given their verdicts on these shares. Are they bullish or bearish? Here's what you need to know.

Read more »

A U.S. Naval Ship (DDG) enters Sydney harbour.
Broker Notes

Why it's not too late to buy this surging ASX All Ords defence stock

A top broker expects more outperformance from this rocketing ASX defence stock.

Read more »

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.
Share Fallers

Why Regis Resources, Strike Energy, Telix, and Virgin Australia shares are falling today

These shares are starting the week in the red. But why?

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Broker Notes

Buy, hold, sell: Brainchip, CAR Group, and Endeavour shares

Let's see what analysts think about these shares this week.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Lifestyle Communities, Perpetual, Reliance Worldwide, and Woodside shares are rising today

These shares are having a positive start to the week. But why?

Read more »