PORTLAND, OR--(Marketwired - Oct 1, 2015) - Eastside Distilling, Inc. (OTCQB: ESDI), a producer of award-winning master-crafted spirits, has provided a corporate update ahead of its busiest quarter of the year.
"As we enter the seasonally strongest quarter of the year, we believe it is important to provide our shareholders with an overview of our progress and strategy to maximize sales between now and Christmas, as well as into 2016," said the company's CEO, Steven Earles. "As previously noted, our Q2 2015 revenues outpaced Q2 2014 revenues by almost 80%, and we are on track to continue our record sales levels for 2015 as well," continued Mr. Earles.
Bridge Financing. The company recently completed a small bridge financing to assist with short-term working capital requirements. The 8-month, 14% $275,000 convertible promissory note was structured with a fixed conversion price to common stock at $1.00 per share. While there is a provision that provides for a variable conversion price, that would only occur if the note is not fully repaid (via cash or conversion) at the end of six months, or upon the occurrence and continuation of certain defaults. The company fully anticipates and is confident the note will be fully repaid within the six-month period and that it will not default under the note thereby eliminating any applicability of the variable conversion price to common shares. Full details can be found in the company's current report on 8-K filed on September 17, 2015 at either the SEC's website (www.sec.gov) or at "Investors" section of the company's website at www.eastsidedistilling.com.
Additional Retail Locations. The 2014 holiday season produced outstanding results for the company due to its decision to open its own retail locations. This year, the company has expanded its retail presence in order to maximize holiday customer traffic in 2015 and additional retail outlets will be located in shopping mall locations in the greater Portland region. Eastside launched the state's first retail tasting room for spirits in a mall location, and now the company has expanded its retail shopping mall presence along with its flagship distillery, where customers can sample, and purchase its award winning spirits direct from the company.
Pacific Northwest Media Blitz. The company has started rolling out its Pacific Northwest Media blitz with radio partner Alpha Media and TV partner Comcast to insure blanket coverage across the state. The integrated high volume media outreach program, along with a company led, focused social media campaign, has been designed to provide high visibility of the Eastside family of brands, supporting sales at Oregon State Liquor stores, the company's retail locations and the numerous events where Eastside will have a presence.
Increased In-Store Tastings. The company is coordinating with its key distributor to deliver numerous "in store tastings" at high traffic Oregon Liquor Store locations throughout the state. Prior in store tastings have proven a successful method of building brand recognition and increasing sales.
Return of Holiday Spirits Gift Packs. Due to its success last year, Eastside is re-launching its seasonal "Holiday Spirits" gift packs consisting of Eastside's seasonal liqueurs (Holiday Spiced, Peppermint Bark, and Egg Nog) which will be available for purchase across Oregon as well as a number of other states across the country.
Community Outreach. Eastside will be participating in over 25 community events in the Portland region including the highly trafficked, "Holiday Food and Gift Festival" and "America's Largest Christmas Bazaar". The company believes these events are great brand building and sales opportunities where the public can sample Eastside's award winning products in many of the venues and purchase great Eastside brands on the spot.
National Rollout Update. In addition to our focused strategy in Oregon, the company continues to see exciting developments nationally. Since the end of 2014, the number of approved states to sell Eastside liquors has doubled to 12, including 3 of the top alcohol consumption states. As Eastside continues its national rollout plans, it anticipates additional states to approve our products. To support this rollout and distribution strategy, the company has also successfully created relationships with the top 5 distributors in the country. Initial orders have been shipped to several of these new states and re-orders have already been received from key markets including New York. As the company heads into 2016 and begin to replicate its successful marketing strategy used in Oregon across other states, it anticipates accelerated revenue contribution from these new territories.
Expanded Production Capabilities. Over the past year, the company has dramatically expanded its production capabilities and believes it is well positioned to manage the increased sales volumes.
Mr. Earles concluded: "We believe the enhanced strategies outlined above will deliver superior results in Q4 2015 significantly outperforming on our Q4 2014 success. We learned from last year's success and we're putting those lessons to good use. We've shored up our immediate working capital needs, significantly expanded our retail presence and in store tasting locations, increased our radio, TV and social media reach and frequency, re-launched our seasonal holiday brands and have backed it all up with solid inventory and production capability. We look forward to executing our plan and delivering a great quarter."
About Eastside Distilling
Eastside Distilling, Inc. 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, Barrel Hitch American Whiskey, 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 or follow the company on: Twitter & Facebook.
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.