DW8 Growth, page-4912

Some key points from the interview:

• DT made comparison to Amazon & Alibaba
• Received discount on freight due to volume end of last year enabling DW8 to pass on 15% savings to customers
• Regional supplier freight cost to Sydney, Brisbane etc is usually $26-30 per case & DW8 is doing it for about $8
• Margin on logistics is 25-30% & not 20% as we have estimated
• Target 1 = 5% market share of $5.3B wholesale B2B market = $265M pa x 12.5% fees = $33.125M revenue
• Target 1 = 5% market share of 65M cases pa logistics = 3.25M cases pa x $8 per case = $26M revenue
• Matter of time before a major such as TWE, Accolade, Pernod Ricard etc jumps on board & supercharges the numbers
• Some large hospitality groups spending $60-70M pa on wine alone also wanted on board
• Wants to also get involved with export market & international dropship thousand & thousands of products on behalf of anyone
• Wants to build a presence in UK, USA, Canada etc & on board their local suppliers
• Logistics is Stage 1, B2B Stage 2 & there will be a Stage 3 DTC with Ebay, Vivino etc
• Will be taking percentage clip from logistics, B2B & DTC revenue streams
• DT mentioned that there has been no deviation from original plan mentioned to investors 2.5 years ago
• DT acknowledged early investors that backed him when risk was high. Had meetings & kebabs with some early investors - TX88 was that you?
• DT mentioned it is still early days for DW8
• Aiming for B2B growth of 1,000% YOY similar to logistics growth

What to watch out for as mentioned by DT:

• a major player coming on board with huge volumes
• have funds & are currently actively looking for acquisition. Not too distant future & growth to further accelerate

It appears that DW8 is currently in 1st gear. They will start changing gears & pedaling hard to make this a monster in 12 months. DT wants another interview in 12 months to look back & see what they have achieved.