WineDepot buys Kaddy, creating digital liquor market heavyweight

Robert Stockdill

15th Oct 2021

WineDepot has bought Kaddy and the two businesses will be merged to create what the companies describe as Australia’s largest alcohol-focused cloud-based logistics and marketplace platform.

“Our vision to bring about the digital transformation of the alcohol beverages market has always been predicated on our ability to create an integrated technology platform that the industry can use to connect, simplify, deliver and share the value released,” said WineDepot CEO Dean Taylor. 

WineDepot’s parent, ASX-listed Digital Wine Ventures, has raised $12.75 million via a placement to institutional and sophisticated investors to fund the acquisition and the company will invite its existing 10,000+ retail investors to participate in the capital raising via a $2 million share purchase plan on the same terms.

Mike Abbott, Kaddy’s co-founder, will join the board of Digital Wine Ventures and head the platforms division of the combined WineDepot/Kaddy business and Rich Coombes, Kaddy’s other co-founder, will join as head of commercial. Dean Taylor, who founded WineDepot, continues as CEO of the combined entity.

Both companies were founded in September 2019 and since then have been developing technology solutions to tackle the growing fragmentation of Australia’s $17 billion wholesale liquor market. WineDepot considers itself the industry’s leading integrated trading, logistics and payment-management technology platform, operating mainly in the wine industry while Kaddy is a leading B2B wholesale beverage marketplace specialising primarily in craft beers, spirits, cider and seltzers.

The combined operation will account for more than 1900 buyers across the on- and off-premise segments, and more than 1000 alcoholic beverages suppliers with more than 10,000 products.

Buyers will now have a wider choice through a much broader range of products and suppliers, lower costs, improved convenience, and a superior fulfilment experience thanks to the two businesses’ integration, said Taylor.

He said the merged entity would offer greater depth, variety and diversity in product range and a strong differentiation due to its focus on craft, independent, boutique, and emerging brands not currently available through mainstream distribution.