DW8 Growth, page-270

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Astutebusyguy

900 Posts.

156

10/09/20

08:51

Post #: 47225632
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Originally posted by Pezz69: ↑

You have done your homework. Yes our position hasn't changed.

Funnily enough I came across DW8 due to market releases by them and it spiked my interest.

The Domestic wine game is quite complex and difficult to succeed in due to the big guys who control the market. Dan Murphy for example squeeze most of the suppliers out and brand there own wines which most people don't know. There is over 3000 wine brands in Dans alone which they own. Unless its a brand they must have like a Penfolds they will replicate with their own offering and squeeze suppliers out.

The B2B is what attracted me, wineries and buyers are more focused on this business model today for improved margins and efficiency in getting wine to the consumer. Its something we have been doing for years in the export market.
DW8 will attract a lot of small wineries with their current model. There are over 2500 branded wine Businesses in Australia. About 10 of those are large commercial who run their own distribution etc. The remaining wine companies need a service provider like DW8. I will spread the word around withing my industry contacts and I believe a significant amount will look at DW8 for their service. The credit alone is a game changer and once the word spreads it will grow quickly. The credit offered is unheard of in the wine game and majority of wineries are very cash poor due to the holding cost etc

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Thank you Pezz69 for your insights it's fantastic to get your honest opinion and to have your insights into the depths of the wine industry. I never knew Dan Murphy's engaged in their branding of wine but it makes sense. Let's hope that in the true Aussie spirit we can lift the margins for those who have been marginalised by the big players. The opportunity is there now like never before in my humble opinion
Once again thank you for your contributions to Hot copper .

DW8 Price at posting: 5.4¢ Sentiment: Buy Disclosure: Held
12 Upvote

0 Great analysis

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