DW8 Growth, page-13973

FYI re: rate increase effective 1 June 2022 for Kaddy Fulfilment. This also may give insight into what to expect for the quarterly. All things we are aware of but will be interesting to see the influence on the bottom line as it is the first quarter with all of these headwinds. Bring on the 'million case' customer ASAP. Dean did say it was one of the First Families of wine in the latest update. As you may already be aware, WINEDEPOT is now Kaddy Fulfilment. Whilst we continue to grow and add more business units to our service offering, we are continually pursuing internal efficiencies to ensure price increases are kept to a minimum and applied only when necessary. During the past year, we have seen several extraordinary circumstances that have contributed to an increase in the cost of doing business for most industries and the logistics world has been hit hard. Escalating fuel prices haveforced the implementation of a fuel levy, which will continue to be monitored on a monthly basis. Vehicle and driver shortages have required the use of third party carriersat an increased cost to our network – these costs are absorbed by us. The shortage of available staff for general warehousing activities has also required the use of third party agencies, again increasing our labour cost and reducing our ability to offer the service levels we know are required to be best in class in the supply chain industry. Owing to this, for Kaddy Fulfilment to honour its commitment to all customers, we advise an increase to your rates effective 1 June 2022. This rate will be held firm until mid-2023 subject to any extraordinary cost increases that may occur. We will email you the updated 2022-2023 rate card within 10 business days. Kaddy Fulfilment continually strives to create change in the beverage supply chain space and dramatically reduce the cost of doing business for all customers. With new technology, new services and further investment in our customer service structure, we will create further opportunities for you in the next 12 months. We would like to take this opportunity to thank you for supporting Kaddy Fulfilment and look forward to your continued support.