Eastside Distilling, Inc. manufactures, acquires, blends, bottles, imports, markets and sells a wide variety of alcoholic beverages under recognized brands.
The company operates a beverage packaging and services business that operates in the beverage segment. During 2022, the company made substantial investments to expand its product offerings to include digital can printing in the Pacific Northwest (together Craft Canning + Printing, Craft C+P). Craft C+P operates mobile filling lines and offe...
Eastside Distilling, Inc. manufactures, acquires, blends, bottles, imports, markets and sells a wide variety of alcoholic beverages under recognized brands.
The company operates a beverage packaging and services business that operates in the beverage segment. During 2022, the company made substantial investments to expand its product offerings to include digital can printing in the Pacific Northwest (together Craft Canning + Printing, Craft C+P). Craft C+P operates mobile filling lines and offers co-packing services with end-to-end production capabilities in Portland, Oregon.
The company’s spirits’ brands span several alcoholic beverage categories, including whiskey, vodka, rum, and tequila. The company sells products on a wholesale basis to distributors in open states and through brokers in control states.
Strategy
Craft C+P offers digital can printing to customers and co-packing services.
The company’s spirits brands span several alcoholic beverage categories, including whiskey, vodka, rum and tequila. The company sells its products on a wholesale basis to distributors through open states, and brokers in control states.
The company’s strategy is to expand its two distinct businesses – Craft C+P and Spirits in its regional market where its brand equity and concentration of investment will have the greatest return. The company’s spirits portfolio is to be positioned as a leading regional craft spirits provider that develops brands, expands geographic presence growing revenue.
Segments
The company operates through two segments, Craft Canning + Printing (Craft C+P) and Spirits.
Craft C+P segment
Craft C+P segment provides digital can printing to customers in the craft beverage industry operating throughout the Pacific Northwest as well as other states. The company also provides mobile canning services to the craft beverage industry in Oregon. In addition to these services, the company offers co-packing services from a single fixed site in Portland, Oregon.
Digital Can Printing
In April 2022, the company initiated operations of an innovative digital can printing facility that allows it to digitally print graphics on aluminum beverage cans. This technology offers greater flexibility than traditional decoration methods and initially was directed toward smaller craft beverage manufacturers seeking custom graphics of limited releases, vintages, partnerships, and special events. This investment in digital printing at Craft C+P allows the company the ability to offer unparalleled customization and flexibility to craft beverage producers seeking direct printing for canning projects of all sizes, while having an annual production capacity of over 20 million cans. One of Craft C+P’s many goals for 2024 is to significantly increase its production capacity.
Co-packing Facility
The company offers co-packing services for non-alcoholic canned beverages including CBD soda waters in Portland, Oregon through a mobile co-packing network and one fixed co-packing location.
Mobile Canning
The company’s mobile canning business is located in Portland, Oregon. The company uses extensive proprietary and data-driven quality control measures and a robust clean-in-place procedure in order to provide the best packaging service for its customers.
Spirits
Spirits segment manufactures, blends, bottles, markets and sells a wide variety of alcoholic beverages under recognized brands in 23 U.S. states. The company’s portfolio includes originals like the Quercus garryana barrel-finished Burnside Whiskey family, Portland Potato Vodka, Hue-Hue Coffee Rum, and Azuñia Tequilas.
Burnside Whiskey Family – The company’s Burnside Whiskey Family celebrates the unique attributes of the native Oregon Oak tree (Quercus garryana). The unique complexity of each distinct whiskey comes from blending Oregon Oak barrels of differing sizes, char levels, and ages.
Portland Potato Vodka – The company’s award-winning premium craft vodka is distilled four times to ensure a smooth finish.
Hue-Hue (pronounced way-way) Coffee Rum – Premium silver rum is blended with concentrated cold-brewed coffee and a small amount of Demerara sugar. The company sources fair-trade, single-origin Arabica coffee beans from the Finca El Paternal Estate in Huehuetenango, Guatemala that are lightly roasted for us by Portland Coffee Roasters.
Azuñia Tequilas – Smooth, clean, additive-free tequilas crafted by Rancho Miravalle, a second generation, family-owned-and-operated estate, bursting with authentic flavor from the local terroir of Tequila Valley, Mexico. 100% pure Weber Blue Agave is harvested by hand, roasted in traditional clay hornos, and finished with a natural, open-air fermentation process. It is bottled on-site in small batches using a consistent process to deliver consistent field-to-bottle quality and exclusively exported by Agaveros Unidos de Amatitán.
Eastside Brands – Craft inspired high-quality limited-edition products, which focus on innovation, craftsmanship and curiosity, and creativity.
One key supplier is Agaveros Unidos de Amatitan, SA. de CV., which supplies tequila to the company.
Distribution Network
The U.S. Distribution
The company primarily focuses its distribution efforts in six open states, including California, Arizona, Colorado, Texas, Washington and Florida. The company’s largest distribution channel is in the state of Oregon through the Oregon Liquor Control Commission.
The company holds the federal importer and wholesaler license required by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department and the requisite state licenses within the states in which it conducts business.
Wholesalers and Distributors
In the United States, the company is required by law to use state-licensed distributors or, in the control states, state-owned agencies performing this function, to sell its brands to retail outlets. As a result, the company depends on distributors for sales, product placement and retail store penetration. As a result, the company must foster and maintains its relationships with its distributors. Through its internal sales team, the company has established relationships for its brands with wholesale distributors in the states where it sells its products, and its products are sold in the U.S. by these wholesale distributors, as well as by various state beverage alcohol control agencies.
Significant Customers
Sales to one customer, the Oregon Liquor Control Commission, accounted for approximately 19% of the company’s consolidated sales for the year ended December 31, 2023.
Intellectual Property
The company sells its products under a number of trademarks which it owns. The company’s brands are protected by trademark registrations or are the subject of pending applications for trademark registration in the U.S. where it distributes its brands.
Seasonality
The company’s Craft C+P business typically has peak sales mid to late summer. The company’s spirits business has historically followed the spirits industry seasonality trends with peak sales generally occurring in the fourth calendar quarter (year ended December 31, 2023) in spirits, primarily due to seasonal holiday buying.
Government Regulation
The company is subject to the jurisdiction of the Federal Alcohol Administration Act, U.S. Customs laws, and the Alcoholic Beverage Control laws of the states where its products are distributed, among many other regulations.
Geographic Information
Craft C+P operates in one state. Spirits sells its products in 23 states.
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