Ann: DW8 to undertake strategic acquisition of Parton Wine Group, page-68

PWG have 225 brands & about 1M cases stored in their warehouses on consignment worth $200M.

They are currently generating revenue via storage fees, picking, packing, labelling etc for sales generated by their suppliers. PWG appear to not be involved in any sales & marketing activity for their suppliers & are a wine industry 3PL logistics company only.

With the acquisition all of the 225 PWG brands & the 1M cases stored in the PWG warehouses have new sales channels via B2B Market, DTC via Ebay, Vivino, Amazon etc & they will be actively promoted by Winedepot. Sales should increase due to all the extra promotion & exposure.

The money is in the $200M of stock/brands & aiming to turn this over annually. $200M x 12.5% = $25M all gross profit. Control & run the logistics at a tiny margin to be very competitive with fast reliable delivery as part of the B2B & DTC offerings. The money & high profit is in the platform fees. Logistics is to make the offer complete & enable the smooth flow of orders. The PWG warehouses are at 81% capacity. For the same current cost base Winedepot can fill them to 100% capacity. There should be room for a total of 1.235M cases or an extra 235,000 cases in the current warehouses.