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 ASX Share Market News

A person bounces another up high from a seesaw as the one in the air looks through a telescope into the future.
ASX Share Market News

Why Baby Bunting is leaping 25% on Friday while QBE shares are sinking like a stone

Investors are piling into Baby Bunting shares on Friday and abandoning ASX 200 insurance giant QBE. But why?

Read more »

2 kids riding a mini toy vehicle
Opinions

3 ASX 200 shares I'd want my kids to own for the next 20 years

These are my top picks right now.

Read more »

Businesswoman with a pleased smile reading on her laptop at a desk in the office with a look of satisfaction.
IPOs

Anthropic is expected to IPO at $2 trillion. This should excite ASX AI investors.

Four ASX shares with exposure to the AI infrastructure buildout.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Morgans names 3 ASX shares to buy

The broker has good things to say about these shares. Here's what you need to know.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Broker Notes

The dividend yield on this ASX tech stock could more than double: Broker

It's had a bumpy ride this week, but this share could generate strong returns.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
ASX Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a poor finish to the week for Aussie investors. Here's what you need to know.

Read more »

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another rough ride for investors this Thursday.

Read more »

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.
ASX Share Market News

5 amazing ASX ETFs for Australian investors in August

Looking for ETF ideas? Here are five to consider.

Read more »