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Corporate Spotlight

DW8 is a technology company servicing the global beverage industry. It's cornerstone investment WINEDEPOT is a B2B marketplace providing an end-to-end supply chain solution for the wine industry. CEO Dean Taylor is a start-up veteran with several successful wine and tech businesses to his credit.
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Interview with Dean Taylor CEO

SAME DAY DELIVERY

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Digital Wine Ventures launch same day delivery service: WINEDEPOT

03 July 2019


  • Digital Wine Ventures has partnered with Australia Post to launch its same day delivery of wine - WINEDEPOT
  • WINEDEPOT is set to transform the global beverage market, reducing freight costs and delivery times
  • The agreement is one of the first major strategic steps forward under the leadership of CEO Dean Taylor who commenced in February this year
  • A close up of a bottle and a glass of wine

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WINEDEPOT, the specialised wine distribution platform aimed at servicing and transforming Australia's multi-billion-dollar wine industry has partnered with Australia Post to launch WINEDEPOT. 

It will allow retailers to drop-ship orders directly to their customers from four depots in Australia. This will significantly reduce delivery times, freight costs and the possibility of breakages - making distribution much more efficient for everyone.

Digital Wine Ventures is the first company to try and digitally connect Australia's $6 billion wine industry.

CEO Dean Taylor's aim is to identify and invest in technology ventures that will digitally transform the global beverage market. Digital Wine Ventures cornerstone investment in WINEDEPOT provides the ideal platform to do exactly that. 

"What we are trying to provide is, I guess in many ways the fulfilment platform for the Wine Industry to provide that same level of service that Amazon does for its consumers," Dean said.

Dean is no stranger to the wine business - he's been at the centre of several heavy hitting wine start-ups including Wine Ark, Cracka Wines, and My Wine Guy.

Wine Ark was born 20 years ago and rapidly expanded under Dean's management. Wine Ark is now Australia's largest wine storage provider, and notable for offering climate-controlled wine storage and inventory management services.

Whilst he modestly says attributes his initial success to being at the 'right place at the right time,' Dean's vision and determination are what led to the success of Wine Ark and his seven other ventures including Winedepot. 

Over the past decade, the wine industry has seen a shift in the way consumers purchase wine. Dean has recognised the infrastructure flaws in the wine industry such as lengthy, unreliable delivery and dated warehouses which are costly and lacking in technology.

Dean's vision looks well beyond Australia's shores. The CEO has his sights set on targeting the China market who reportedly face a similar wine supply chain issues Australia does. 

"Australia produces $6 billion of wine each year. However, it’s just a small part of the $300+ billion global wine market. We believe that our platform has the potential to release an enormous amount of value not just here but globally," he said. 

Dean's focus is to utilise the WINEDEPOT platform in the China market to make it simpler, cheaper and easier for wine producers and retailers to fulfil customer orders and build long-lasting relationships. 

Under the agreement, WINEDEPOT will establish its first four depots within Australia Post's existing distribution centres located in Sydney, Melbourne, Brisbane and Perth. 

"Our partnership with WINEDEPOT provides the wine industry with a specialised distribution service that will not only save money but also improve the consumer delivery experience," Head of Growth Products at Australia Post Paul Hersbach said. 

Each depot will hold a range of suppliers' inventory on consignment and can be accessed by sales channels. Orders will be made through the platform and routed to the depot closest to the delivery address. Here, they'll be picked, packed and drop-shipped to the end customer. 

"Every Australian consumer will soon expect fast and free delivery. Any business not offering the same will simply lose market share," Dean said. 

COMPANY UPDATE

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COMPANY UPDATE 

ASX Announcement 3 May 2019 


HIGHLIGHTS: 

  • Digital Wine Ventures completes its first acquisition 
  • WINEDEPOT business overview 
  • WINEDEPOT China expansion plans


Digital Wine Ventures completes its first acquisition 

Digital Wine Ventures is pleased to announce the acquisition of Wine Depot Holdings Pty Ltd (WINEDEPOT) was approved by shareholders at the General Meeting on 23 April 2019. This successful acquisition is the first acquisition as Digital Wine Ventures transforms into a diversified company investing in technology-driven businesses servicing the $300 billion global wine industry.


“Our aim is to identify and invest in early stage technology-driven ventures that have the potential to disrupt and digitally transform segments within the global wine market and support them by providing access to capital, expertise and shared resources,” Mr.Piers Lewis, Chairman explains. 


“Of all the businesses we’ve looked at over the last 18 months, WINEDEPOT stood out in terms of its potential to play a significant role in simplifying and improving the wine and alcohol supply chain, not just here in Australia but also in other countries.”


“The Directors are excited about the potential WINEDEPOT has to disrupt the logistics segment of the alcohol industry here in Australia and in key international markets. We are confident that Mr. Dean Taylor, who has over 20 years’ experience in the wine industry and a history of successful startups, with first to market ideas and digital based business models, is one of the most credentialed wine executives in Australia. We believe Dean is best placed to develop WINEDEPOT and Digital Wine Ventures, especially in these formative years.”


“Whilst the focus now is clearly on rolling out the WINEDEPOT business, the Directors will continue to look for other strategic acquisitions that can be vertically integrated with our existing asset base, allowing them to leverage our infrastructure, technology, access to capital and relationships to scale their businesses more rapidly” concluded Mr. Lewis.


WINEDEPOT– Business Overview 

WINEDEPOT is a cloud-based technology platform that has been designed to connect wine industry stakeholders, allowing them to leverage their combined buying power and common resources to reduce the time, margin and capital wasted in the existing supply chain. 


Catering for producers, distributors, importers and retailers of all sizes, the vertically integrated trading and smart logistics platform allows orders to be fulfilled from suppliers inventory reserves held on consignment in ‘depots’ servicing key markets. 


For many wine businesses, the platform provides an end-to-end supply chain solution capable of servicing a wide variety of sales channels including the rapidly growing direct-to-consumer and online market segments. 


To support the online platform, WINEDEPOT is partnering with a number of existing third party logistics businesses to create a network of ‘depots’ servicing key markets. 


Each depot holds a broad range, but limited volume of inventory on consignment, typically enough for 2-6 weeks cover. Suppliers orders are routed to the depot closest to the delivery address where they are picked, packed (by bottle or case) and drop-shipped to the customer. Delivering locally significantly reduces delivery times, freight costs and the opportunity for breakages. 


Depots are then automatically replenished on a bi-weekly basis from WINEDEPOT 's regional bulk storage facilities on behalf of suppliers. 


Key benefits for stakeholders include: 

  • Reduced freight costs; 
  • Reduced shipping times; 
  • Reduced paperwork & administration; 
  • Reduced working capital requirement; 
  • Reduced errors & breakages; 
  • Increased customer reach; 
  • Increased customer satisfaction and repeat sales. 


The plan is to launch the platform in three phases, starting with the logistics solution in Australia before expanding the platform and depot network into other key markets for Australian wine such as China, USA, UK, Canada, Hong Kong, Singapore and New Zealand. 


By the end of this year, WINEDEPOT expects to have established five depots in Australia including sites in Sydney, Melbourne, Brisbane, Adelaide and Perth. 


CEO Dean Taylor believes the WINEDEPOT platform will not only appeal to the 2,500 local wine producers, but also international wine brands looking for a way to service Australian consumers either directly or their resellers. In particular he sees New Zealand producers who represent almost half of the wine imported into the country taking advantage of the platform. 


Mr. Taylor believes that many distributors and importers will also take advantage of WINEDEPOT 's platform to service the rapidly growing online and direct-to-consumer segments or use it to replace their existing warehouses which are largely subscale, lacking in technology and a significant overhead cost weighing on their profitability. 


“I also expect many online retailers and marketplaces will also utilise WINEDEPOT to improve their customer service levels, expand their ranges and to reduce the amount of inventory they carry. Our platform provides them the ability to deliver to 85% of orders nationally within 24 hours at cost that they easily absorb into their margins. Having spent the last 15 years building online retail businesses, I’ve personally seen how the last mile delivery experience can create or destroy value.” 


“With the arrival of Amazon, every Australian consumer will soon expect fast and free delivery. Any online retailer not offering the same will simply loose market share. We’re putting in place the infrastructure that will allow the wine industry to viably support that calibre of service level” says Mr. Taylor.


Click here to view the full announcement 

QUARTERLY

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QUARTERLY REPORT – 31 MARCH 2019 

ASX Announcement 30 April 2019 


HIGHLIGHTS 

  • Wine Depot acquisition completed 
  • Dean Taylor joins the Company


Digital Wine Ventures Limited (ASX: DW8) (Digital Wine Ventures or Company) is pleased to provide a summary of the activity undertaken in the three-month period ended 31 March 2019.


Acquisition of Wine Depot 

After postponing and adjourning the General Meeting an addendum to the General Meeting was made to provide further information to shareholders, on 23 April 2019 the Company held the General Meeting where shareholders voted resoundingly in favour of the acquisition of Wine Depot.


Wine Depot is a Sydney based company that is in the process of launching a B2B marketplace that will allow wine retailers to access inventory held on consignment from thousands of suppliers and then have their orders picked, packed and delivered directly to the end consumer - reducing handling, shipping times, freight costs, administration and breakages.


Wine Depot’s integrated wine trading and smart logistics platform is the first of its kind in the world and is expected to go live in Australia in September 2019 before being expanded into other key markets for Australian wine such as China, USA, UK, Canada, Hong Kong, Singapore and New Zealand.


Experienced Industry CEO joins the Company 

On 1 February 2019, Dean Taylor officially joined the Company as Chief Executive Officer. Mr Taylor is a digital pioneer and start-up veteran with seven successful wine ventures under his belt including Cracka Wines, Wine Ark and My Wine Guy. Mr Taylor stated he is excited about joining Digital Wine Ventures and the opportunity to drive a project that has the potential to release so much value and efficiency within the existing wine supply chain.


Mr Taylor established and launched Wine Ark in 2000, a business providing climate-controlled storage for wine lovers. Mr Taylor rapidly expanded the business into over a dozen sites around the country - managing over $100m of wine for private collectors.


Since then Mr Taylor has founded six other wine businesses including The Wine Exchange an online trading platform for fine wine, The Cellar Club, an ultra premium wine club, Cracka Wines one of the largest players within the rapidly growing online wine sector, Australian Wine Store which produces wine under almost fifty brands and Winegrowers Direct and My Wine Guy two other online retail stores servicing niche segments of the wine market, ultimately consolidating this group of companies with The Wine Society, Australia’s oldest wine club.


Dawine China 

As part of a strategic review completed by the new CEO in an effort to reduce costs, the company has decided to wind back its direct-to-consumer presence in China and instead focus on large volume sales within the B2B market instead.


“The volume of wine being sold via Dawine’s direct-to-consumer channels was not enough to justify keeping them operating and the changes will help to reduce the cash burn in China allowing us to channel all available reserves into the roll out of the Wine Depot business instead.” says Taylor.


The wind back in the direct-to-consumer consumer business was commenced in March, however it will take until the end of June for the full effect of the expense savings to flow through.


Corporate & Operations 

The Company has a cash position of $648,822 as at 31 March 2019. 


On the 28 February 2019 141,103,436 ordinary shares were released from escrow


Click here to view the full announcement

COMPANY UPDATE

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COMPANY UPDATE

Dawine sells 17,000 bottles in B2B transaction

ASX Announcement 21 November 2018


  • First sale in B2B focus results in 17,000 bottle sale 
  • Name change to coincide with business change


Dawine Limited ("Dawine" or "the Company") is pleased to advise that the newly initiated Businessto-Business arm first sale for 17,000 bottles has occurred, signalling an effort to increase the Company's exposure to China's $1.1 billion per annum appetite for Australian wine.


Piers Lewis, Chairman of Dawine commented: “Up until now, we’ve been trying to build our own consumer database through a variety of online sales channels. While we’ve made some progress, customer acquisition costs are extremely high unless you are selling very well known brands such as Penfolds or Jacobs Creek.” 


“Rather than compete directly for customers, we’ve recognised that it is more efficient to partner with existing Chinese retailers and sales channels, providing them a platform to access Australian wine brands.”


“Our aim is to provide a one-stop-shop for Australian wine producers of all scales to access the lucrative but difficult to navigate Chinese market. We’ll manage the entire process for them, from when the wine leaves the cellar door to when it’s delivered to a home in China.”


New Market, New Strategy 

The B2B focus also aligns with the company’s proposed acquisition of Wine Depot, an integrated B2B trading and logistics platform that allows retailers to drop ship orders directly to their customers from inventory held in strategically placed location.


Mr Lewis commented: "We have had a presence in Shanghai for almost three years now. It’s a logical starting point to establish a depot to service the China market. Similar to Wine Depot’s plans for Australia, we would look to expand the network into other major Chinese cities as the demand grows.”


“With the likes of Alibaba investing over $400 million into wine importer and retailer 1919.com, it shows just how much potential there is if you get the operating model right.”


Along with the change in distribution strategy, the Dawine Board has decided to rebrand the company's name to Digital Wine Ventures Limited, as announced in the Notice of Annual General Meeting dated 30 October 2018. 


Mr Lewis commented: “Dawine was the name we chose as our consumer facing brand in China. As we enter the B2B model and diversify via strategic acquisitions it has less relevance, particularly here in Australia.”


“For some time the board has wanted a name that better reflects the true ethos and direction of the company. Digital Wine Ventures was chosen as it aligns with our current ASX code (ASX: DW8) and seems an appropriate fit.


“It also helps us to set a new mandate for the incoming CEO, Dean Taylor, whose extensive experience in technology driven and disruptive wine businesses is second to none. We’ve done our best to prepare the company ahead of his arrival so he can hit the ground running. It really is an exciting time for the Company.”


Click here to view the full announcement

INTERVIEWS

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