SOURCE: Eastside Distilling Inc.

Eastside Distilling Inc.

February 05, 2015 09:10 ET

Eastside Distilling Commences National Rollout of Master-Crafted Spirits With Blackheath Beverage Group

Leading Sales & Marketing Firm for Independent Spirits Brands to Bring Regional Success to National Stage

PORTLAND, OR--(Marketwired - Feb 5, 2015) - Eastside Distilling, Inc. (OTCQB: ESDI), a producer of award-winning master-crafted spirits, has announced that Blackheath Beverage Group is commencing the launch of Eastside's new national sales campaign.

Eastside seeks to leverage Blackheath's spirits industry expertise and national salesforce to bring its award-winning master-crafted spirits to the national stage.

"Blackheath has a strong track record of helping independent brands like ours establish a nationwide presence," said Eastside Distilling's CEO, Steven Earles. "Their unique, holistic understanding of the spirits trade will help us navigate the government regulated sales and distribution systems that operate in each state. We expect this to facilitate a fast time-to-market, along with cost-effective product marketing, sales, and distribution."

Working closely with Eastside, Blackheath's national sales team would also help develop and implement all phases of the company's product and brand development leading into a fully integrated marketing campaign with national sales and distribution.

Blackheath's team is comprised of seasoned industry sales and distribution executives that maintain close relationships with the major U.S. distributors. The co-founder and CEO of Blackheath, Jay Harkins, is a 15-year industry professional who has held senior leadership positions at Domaine Select Wine Estate, Southern Wine & Spirits, and E&J Gallo.

"We're very excited to bring Eastside Distilling's master-crafted spirits to the national stage," said Harkins. "Eastside is led by phenomenal craftsmen, innovators, and marketers, as evidenced by numerous industry awards, and growing sales success."

"We see enormous growth opportunities for craft spirits, particularly in the American Whiskey and Bourbon categories," added Harkins. "The evolving flavor preferences of millennials will be a key element to any new campaign, and the unique flavor characteristics found across Eastside's product portfolio address these trends perfectly."

In preparation for the new national campaign, Eastside has begun the build-out of a new 41,000 sq. ft. facility on Portland's Distillery Row. Scheduled to become operational in the second quarter of 2015, the facility will house the largest distillery for master-crafted spirits in the Pacific Northwest. This compares to the company's current 2,500 sq. ft. facility that has been running at near capacity.

The expanded space will receive new state-of-the-art distilling, bottling, and packaging systems designed to increase Eastside's production capacity from about 6,400 cases annually to up to 1 million.

About Blackheath Beverage Group
Blackheath Beverage Group, LLC is an outsourced sales and marketing platform that efficiently and effectively provides independent brands with the leverage that is otherwise only found within large suppliers. Between producer and distributor, distributor and retail, and between retail and consumer, small brands often fall through the cracks. Blackheath bridges the gaps in the "Three-Tier" liquor system by supplying the necessary resources while allowing brand owners to maintain a vast majority of their profits and control. Founded in 2012, Blackheath Beverage Group is rapidly redefining how independent brands go to market. The Blackheath team draws industry experience from previous senior posts held at; Bacardi USA, Domaine Select, Diageo, E&J Gallo, Glazers and Southern Wine and Spirits, among others. For additional information visit: www.bhbeverage.com

About Eastside Distilling
Eastside Distilling, Inc. (OTCQB: ESDI) has been producing high-quality, master crafted spirits since 2008 and is located in Southeast Portland's Distillery Row. Makers of award winning spirits, the company is unique in the marketplace and is distinguished by its highly decorated product lineup that includes Burnside Bourbon, Below Deck Rums, Portland Potato Vodka and a distinctive line of infused whiskeys. All Eastside spirits are master crafted from natural ingredients for unparalleled quality and taste. The company is publicly traded under the symbol OTCQB: ESDI. For more information visit: www.eastsidedistilling.com

Forward-Looking Statements 
Certain matters discussed in this press release may be forward-looking statements. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release may include statements related to our strategic focus, product verticals, anticipated revenue and profitability. The Company assumes no obligation to update the cautionary information in this release.

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