Eastside Distilling Generates $1.5 Million from Excess Barrel Sale

Rhea-AI Summary

Eastside Distilling (NASDAQ: EAST) announced a sale of 798 barrels of whiskey for $1.5 million to address inventory surplus. The barrels, aged between three and eight years, were not part of existing product plans. CEO Geoffrey Gwin highlighted that the sale not only helps in debt reduction with Live Oak but also frees up capital for new projects. Eastside maintains an inventory of over 2,000 barrels for future bottling. The company's lineup includes notable products like Burnside Whiskeys and Azuñia Tequilas.

Positive

• Generated $1.5 million from the sale of 798 barrels of whiskey.
• The sale addresses inventory surplus and reduces debt with Live Oak.
• Capital freed up for future projects and products.

Negative

• None.

PORTLAND, Ore., Feb. 15, 2022 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST) ("Eastside" or the "Company"), a consumer-focused beverage company that builds craft inspired experiential brands and high-quality artisan products around premium spirits and ready-to-drink "RTD" craft cocktails announced that it sold 798 barrels of whiskey for $1.5 million. These barrels of 95% rye whiskey ranged in age from three-year-old to eight-year-old and were in excess to Eastside's 5-year product release plan.

"The sale of these barrels addresses a surplus in our inventory and has the added benefit of freeing capital for other projects," said Eastside's CEO Geoffrey Gwin. "Fans of Eastside will be happy to hear that we currently have more 2,000 barrels aging our premium whiskeys for later bottling and canning." The remaining inventory of 2,391 barrels of various types and ages of whiskey is slated for its limited-edition spirits portfolio, Burnside Whiskeys® aged in Eastside's signature Oregon White Oak (Quercus Garryana) barrels, and a soon-to-be-released line of canned cocktails.

The 798 superfluous barrels sold were not intended to be part of any Eastside's existing or upcoming products. The sale included 33 barrels of 8-year-old, 57 barrels of 7-year-old, 365 barrels of 5-year-old, 20 barrels of 4-year-old, and 323 barrels of 3-year-old 95% rye whiskey.  The proceeds from the sale reduced debt outstanding with Live Oak as well as increased cash for working capital.

About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST) has been producing high-quality, award-winning craft spirits in Portland, Oregon, since 2008. The Company is distinguished by its highly decorated product lineup that includes Azuñia Tequilas®, Burnside Whiskeys®, Hue-Hue Coffee Rum®, and Portland Potato Vodkas®. All Eastside spirits are crafted from natural ingredients for quality and taste. Eastside's Craft Canning + Bottling subsidiary is one of the Northwest's leading independent ready-to-drink canners. For more information, please visit www.eastsidedistilling.com or follow the Company on Instagram, Twitter, and Facebook.

Important Cautions Regarding Forward-Looking Statements 
Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. 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 impact of COVID-19 and related business disruption, the Company's ongoing financing requirements and ability to achieve financing, 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 other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release.

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SOURCE Eastside Distilling, Inc.

FAQ

What was the revenue generated by Eastside Distilling from the recent barrel sale?

Eastside Distilling generated $1.5 million from selling 798 barrels of whiskey.

How many barrels of whiskey did Eastside Distilling sell?

Eastside Distilling sold 798 barrels of whiskey.

What is the age range of the whiskey barrels sold by Eastside Distilling?

The barrels sold ranged from three to eight years old.

What will Eastside Distilling do with the proceeds from the barrel sale?

The proceeds from the sale will be used to reduce debt and increase working capital.

How many barrels does Eastside Distilling currently have in inventory?

Eastside Distilling has over 2,000 barrels of whiskey aging for future bottling.