Digital Wines will soon offer wines to 12 million eBay customers, share price zooms 30pc
Food & Agriculture
Food & Agriculture
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Digital Wine Ventures (ASX:DW8) has continued its magic run, with its share price surging by 30 per cent today, after announcing a deal with eBay. DW8 shares have risen by over 1,400 per cent in the past 12 months.
Digital Wine announced today that WineDepot, its cloud-based wine marketplace, has signed an MoU with eBay, the biggest online shopping site in Australia.
Under the MoU, WineDepot and eBay will negotiate terms of a partnership to allow Australian wineries to list their products directly on eBay without having to set up an account. An MoU is non-binding, and it’s possible that a partnership may not eventuate.
The arrangement is similar to one it signed last month with the world’s biggest wine marketplace, Vivino, where the wines will be automatically uploaded via WineDepot’s integrated logistics platform called DIRECT, allowing wineries to sell directly to eBay’s 12 million unique monthly visitors.
Digital Wine’s CEO Dean Taylor says the deal will allow Australian wineries to scale up by being able to access overseas markets over time, as WineDepot develops its capability to drop ship orders internationally.
The company has seen its revenues jump by over 1,000 per cent in the half year ending 31 December, to almost $1 million.
It’s fuelled the growth through strategic acquisitions, such as the one it made last year, acquiring Wine Delivery Australia, which instantly added 150,000 to its customer base.
After China announced sanctions on Australian wines last year, the company assured the market that it has zero exposure to China exports, and has closed down its Chinese subsidiary. Instead, it said it would continue to focus on its major international markets in UK, USA, Canada, Europe, New Zealand and Singapore.
To grow these markets, the company has recently closed a $6 million capital raising – to bulk up its human resources, technology development, and marketing.