SOURCE: Eastside Distilling, Inc.

Eastside Distilling, Inc.

April 26, 2016 09:00 ET

Eastside Distilling Updates National Rollout Campaign With Blackheath Beverage Group

Eastside Now in 16 States and Four of Top Five Liquor Consumption States

PORTLAND, OR--(Marketwired - Apr 26, 2016) - Eastside Distilling, Inc. (OTCQB: ESDI), a producer of award-winning master-crafted spirits, is pleased to provide an update related to its national rollout campaign first announced in February 2015, in conjunction with Blackheath Beverage Group LLC. Blackheath is a sales & marketing firm for independent spirits brands that has been working closely with Eastside over this past year to bring its portfolio of award-winning master-crafted spirits to the national stage.

Based on these joint efforts, Eastside's portfolio of master crafted spirits is now being sold in 16 states including California, New York, Texas, Illinois, four of the nation's top five liquor consumption states, as well as Indiana, Virginia, Nevada and of course Oregon, all previously announced. Additionally, Eastside spirits are being sold in Minnesota, Georgia, Maryland, Massachusetts, Pennsylvania, Connecticut, New Jersey and Washington. In aggregate these markets represent 55% of the national spirits market based on case sales (source: 2014 Liquor Handbook).

"We've seen tremendous expansion across a wide range of markets this past year with Eastside Distilling. The early stage acceptance of Eastside spirits across a diverse number of markets is a testament to the quality of their portfolio of brands and how they are ideally tailored for today's spirits consumer. Eastside is led by phenomenal craftspeople, innovators, and marketers, as evidenced by numerous industry awards, and growing sales success. We look forward to continued strong growth from this great company with increased adoption in the markets we are currently in as well as further expansion into new markets both nationally and internationally," said Michael Reich, President/Partner, Blackheath Beverage Group.

"Blackheath has a strong track record of helping independent brands like ours establish a nationwide presence. Their in-depth understanding of the spirits trade has helped us navigate the government regulated sales and distribution systems that operate in each state. They also have extensive and long-standing distributor and broker relationships that we believe have helped us expeditiously gain entrance to markets across the nation and in our opinion, to maximize brand development, sales and marketing in a cost efficient manner," said Eastside Distilling's CEO Steven Earles.

"Our strategy from the outset was to establish success in our home state of Oregon as the cornerstone upon which we could build our national campaign. Our sales in Oregon have never been better and we continue to support our home market through participation in events across the state and a boots on the ground sales strategy. We are particularly gratified that our sales continue to climb in the state as it is based on the quality of our award winning spirits leading to increasing repeat purchases."

"Looking ahead, we believe that national success is contingent on having the right relationships in the markets we enter. Building out this network and supporting sales through our distributors and broker channels is the cornerstone of our next phase of growth. We look forward to increased penetration in our existing markets and expanding our footprint with new national and international opportunities as they present themselves," concluded Mr. Earles.

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) is located in Southeast Portland's Distillery Row, and has been producing high-quality, master crafted spirits since 2008. Makers of award winning spirits, the company is unique in the marketplace and distinguished by its highly decorated product line-up that includes Barrel Hitch American Whiskies, 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; the Company's ability to continue as a going concern; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's ability to obtain additional capital, 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 for the year ended December 31, 2015 filed with the Securities and Exchange Commission on April 13, 2016 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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