8/4/2019 IN THE BLACK with John Beveridge: Wine Online Finds Success with Buyers and Sellers, Herald Sun 24th August 2011

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Herald Sun

Wednesday, August 24, 2011

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BUSINESS DAILY 

IN THEBLACKwith John Beveridge

Wine online finds success with buyersand sellers

IF youwantthe ultimatechallenge, it would be tosella product that isinchronic oversupply in

the softest discretionaryretail market for many

 years.Which is why Cracka

Wines’ achievement of averaging 20 per centgrowth month on monthsince the start of 2011withvirtually no marketing is anamazing effort.

Turnover ison track toreach around $20millionthis financialyear andasharemarket float is on thehorizon.

According to managingdirector DeanTaylor, thesecret isto be friends tobothcustomers andwineries by sharing the

benefitof the lower marginsthatcan be charged onlinebetween them.

‘‘We havehad hundreds of consumers who havegoneto thetrouble of thanking usforour service and thewineries are really keen to

 join because theyget tokeep moremargin,’’ saidDean, who pitched Crackaat the mid-priced onlinewine market betweenGraysonline and Langtons.

‘‘With wineries squeezedbetween thewineglutandthe retail power of Coles andWoolworths, the online sales

channel isa way for themtoget back some control overtheir marketing and brand.’’

Such success doesn’tcome easily or everyonewoulddo it, with thecompany website offeringextensive wine reviews andinformation, cellar doorsales, a falling price auctionsystem and fast deliverythrough Australia Post.

‘‘Australians love sport so you have to make buyinglike a sport,’’ explainedfounding chairman andformer chief operating

officer of carsales.com,Shane Pettiona.

‘‘If you can buy some winecheaper thanthe nextperson or race the clock andstill get what you want, itadds excitement to the

transaction.’’From Cracka’s

perspective, the great thingabout its business model isthatrevenue canmultiplymanytimes without havingan impact on costs — thecrucial advantage onlineretailers haveover theirbricksand mortar cousins.

The other bigadvantageis the open pricing modelwhich is difficult forthe Dan

Murphy’sof theworld tocopy if they want to retaindifferential pricing acrossvarious outlets.

Unfortunately it is tooearly to invest in the fast-growing Cracka other thanas a purchaser but therecent profit numbers out of carsales.com painted asimilarly attractive butmuch more mature onlinebusiness that should thrive

in a tough or booming retailenvironment, earning a buycall.

OUR earlyspeculative buy call on uraniumexplorer Uranex has

been vindicatedby a bigcorporate move yesterday.

The Melbourne-basedminnow is set to get a handy$20 million by selling thecompany’s Australianuranium assets to a majorChinese investor followingan independent valuation of the projects.

A non-refundable depositof $500,000is alreadyin thebank and the remaindershouldarrive within 90 daysif the due diligence andapproval from shareholdersand regulatorsis allforthcoming.

While Uranex’s ThatcherSoak, Bremer Basin andAlligator Riversprojects arealldesirable, the main gamefor Uranex is in Tanzaniawhere itsMkuju project hashuge potential.

With around 69km of strike, uranium anomalies in

five different areas andstellar drilling results, theextra cash shouldallowUranex to speedup thetaskof getting somereserves onthe books and some scopingand feasability studies

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8/4/2019 IN THE BLACK with John Beveridge: Wine Online Finds Success with Buyers and Sellers, Herald Sun 24th August 2011

http://slidepdf.com/reader/full/in-the-black-with-john-beveridge-wine-online-finds-success-with-buyers-and 2/2

Herald Sun

Wednesday, August 24, 2011

Page : 36

Section :

Edition :

Region : Vic Metropolitan

Page : 2 of 2

Circulation : 514,000

 Area Of Clip : 303.23 sqcm

Clip ID : 0000001

Copyright Agency Limited (CAL) licensed copy or Copyright Act 1968 (Cwlth) s 48A copy

completed.Theother nice things to

note aboutMkuju is thesandstone style of uraniummineralisation which helpsto cut extractioncoststhrough either open-pitminingor in-situ leach.

Even without theAustralian assets, Uranex isnot a one-trickpony withthe Songea thermal coalproject in Tanzania’sRuhuhu coal basin addinganother sourceof futurecashflow should the post-Fukushima recovery of uranium prices be slowerthan expected.

TheHeraldSunaccepts no responsibilityfor stock recommendations. Readers shouldcontacta licensed financialadviser.

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