Wine Depot to launch direct to trade marketplace
Digital Wine Ventures has announced that it will be expanding its Wine Depot business, intending to launch a trade offering later this year.
Launched last year, Wine Depot is a “a vertically integrated trading and logistics platform” that connects producers with customers. Since then it has been bringing new wineries on board, more than doubling its customer base in the last quarter, through a solution designed to reduce delivery times and costs in orders direct from the winery to the consumer.
Wine Depot’s expansion will mean it can apply that solution to the winery and retailer relationship, with the launch of the Direct-to-Trade Marketplace this year. The tool will allow on-premise venues and off-premise retailers to purchase directly from wine producers with a “farm-to-table inspired ordering solution.”
To fund the expansion, the company is expecting to raise up to $6.15 million in capital, through 246 million new shares, through what is described as a ‘strongly supported’ private share placement and director participation, followed by a share purchase plan for existing investors.
Raised funds will support the launch with investments in Wine Depot’s Smart Logistics Solution, as well as technology and development, sales and operations, and advertising and marketing.
In Australia’s $5.3 bullion wholesale liquor market, Wine Depot describes their point of difference as servicing producers for a fraction of the usual cost, and encouraging wineries to share some of that margin with trade through loyalty and early payment discounts. This is why Digital Wine Ventures CEO, Dean Taylor (pictured in header), said now is the perfect time for the launch.
“COVID-19 has driven millions of consumers online across almost every product category, but in particular wine. Having discovered how convenient buying this way is, I doubt many will revert to their previous purchasing habits. This is not just consumers but businesses too,” Taylor said.
“Our Direct-to-Trade Marketplace will provide wine and other beverage producers a simple, cost-effective and highly scalable platform to reach and transact with thousands of trade buyers. Similar to direct-to-consumer sales channels it is a far more profitable route to market.”
“For the buyers our platform will streamline purchasing, reduce administration, simplify payments and provide a range of credit solutions. Best of all it eliminates the need for sales reps to visit their venues, reducing the risk of spreading COVID-19 from business to business.”
With a range of iconic Australian wine producers already on board, as well as a network of strategically located depots across the country, Digital Wine Ventures sees the recent success of Wine Depot customers in the direct to consumer area as encouraging for the future of the Direct-to-Trade Marketplace. It noted that volumes significantly increased over lockdown, and for one customer, sales increased by 400 per cent.
At this stage, Wine Depot’s Direct-to-Trade Marketplace is slated for launch in late 2020.