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Digital Wine Ventures (ASX: DW8) has entered into a binding agreement to purchase 100 per cent of Parton Wine Distribution, one of Australia's largest specialty wine and beverage logistics providers.
The acquisition was made through DW8's WINEDEPOT, the company's core subsidiary and a cloud-based platform designed to connect wineries with trade buyers and investors.
The addition of Parton's supplier base, of which there are 225 unique retailers, is expected to boost WINEDEPOT's network to 600. Order volume is likewise slated to increase by 150 per cent, along with a rise in the total number of cases shipped by 220 per cent.
Digital Wine's CEO Dean Taylor described the acquisition as a significant value-add for customers, allowing the company to take its integrated trading, logistics and payment management technology platform to the next level.
"We believe fast, cost-effective and reliable order fulfilment is the most powerful way to differentiate your customer value proposition and propel sales growth," he said."We are really excited to become the custodians of Parton Wine Distribution. Their long track record in the industry, 23,000 sqm of warehousing, stacked together with almost 100 experienced and dedicated staff, provides a significant boost to our operational capability."
Parton's key assets include a National Distribution Centre in Albury/Wodonga, strategically placed to serve clients in both NSW and Victoria, as well as a fleet of 30 vehicles and warehouses across Sydney, Melbourne, and Perth.Taylor said that although third-party logistics had served the business well to date, as the business continues to scale an in-house solution has become necessary to meet demand.
"Having our own dedicated fleet of delivery vans and drivers will ensure we provide an exceptional experience for suppliers using WINEDEPOT LOGISTICS and trade buyers using WINEDEPOT MARKET, our recently launched direct-to-trade online marketplace," he said."In addition, direct management of our own warehouses allows us to offer on-demand picking, late cutoff times and temperature-controlled, cold chain and bonded storage to our customers right up and down the supply chain."
Parton Wine Group Founder Richard Raddon will join WINEDEPOT's senior executive team as general manager of the logistics division, assisting in the post-merger integration of his business.Earlier this year, Business News Australia spoke to Dean Taylor about DW8's foundations and prospects.
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