ALM have their 2,700 venues to entice suppliers to go exclusive. DW8 can also promote & market suppliers products.
DW8 can undertake marketing campaigns to proposed customers on behalf of suppliers via online media, offline media etc. They will most likely promote the B2B platform extensively & also present case studies of success. Winery Direct will offer digital marketing & promotion.
Once the B2B platform gains traction, similar to say an Ebay or Amazon, the suppliers will be chasing DW8 to list their products.
With the ALM/Broo agreement it appears ALM will supply their 2,700 venues & sell mainly to these venues by going exclusive. There are about 50,000 venues in Australia thus 2,700 / 50,000 venues = 5.4%. Other venues will also be able to buy via ALM but not direct from Broo. Broo would now be throwing away 35% or so of their margin by going with ALM.
The B2B platform will develop a large buyer base of several thousands by being brand agnostic making it worthwhile for suppliers to list their products. The B2B platform will also have International buyers whereas ALM's ordering site will only have local venues.
DW8 Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
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