Eastside's Private Label Subsidiary to Become One of Few Pacific Northwest Firms to Offer Canning of Wine and Cocktails

Eastside Distilling, Inc.

Companies Mentioned:

Primary Exchange: OTCQB
Under the Symbol: ESDI

Eastside's Private Label Subsidiary to Become One of Few Pacific Northwest Firms to Offer Canning of Wine and Cocktails

Wednesday, July 19, 2017 12:15 PM

Motherlode's New Canning Line to Support the Fast Growing "Ready to Drink" Spirits and Canned Wine Market

PORTLAND, OR / ACCESSWIRE / July 19, 2017 / Eastside Distilling, Inc. (OTCQB: ESDI), a producer of award-winning craft spirits, today announced an important new extension of its contract bottling services offered by its Motherlode subsidiary. By the end of August, Motherlode intends to begin canning wine and Ready to Drink ("RTD") alcoholic drinks for its Pacific Northwest customers. The custom built canning line is designed to produce Ball Corporations (BLL) popular "slim can" in 187ml, 200ml and 250ml sizes, with 250ml being equal to approximately 8.45 ounces. The new line will be able to can wine and RTD beverages containing up to 20% alcohol by volume.

Allen Barteld, CEO of Motherlode, commented, "Motherlode has until now focused on bottled spirits. Our new slim can capability extends our reach into the fast growing RTD market with a very fashionable and in-demand package. I am actively soliciting business with my goal being to have as much capacity as possible pre-booked prior to going operational in August. As one of the few bottlers in the western U.S. offering Ball slim can capability for third parties, we are already in discussions with existing and prospective customers to begin providing product as soon as the line is up and running."

Allen Barteld believes that local wine producers in Oregon, Washington, and California will be attracted to its new canning service. According to recent Nielsen data, canned table-wine sales increased tenfold, from $668,003 in the year ending in June 2015, to $6.7 million in the year ending in June 2016. Canned non-sparkling wine sales are now double that of canned sparkling wine.

As with vintners, many of the hundreds of distilleries based in Oregon and Washington could be open to considering RTD products. According to Technavio, a research firm, low alcohol RTD drinks are expected to be one of the best performing sectors from 2016-2021, with an expected cumulative annual growth rate of 8.2%. Worldwide, according to Impact Databank, cases sold of pre-made cocktails rose by 6% in 2011, up from 2010, and 6.8 million 9L cases were shipped.

Grover Wickersham, Chairman and CEO of Eastside Distilling, commented, "Changing lifestyle and alcohol consumption habits has created a category within the marketplace that is expanding rapidly - the RTD market. It's not lost on Eastside and our spirits branding firm, Sandstrom, that this new slim can line will be a great outlet for our own new product ideas."

Motherlode's supplier of the canning line is Codi Manufacturing. The line includes such features as a 4-head counter pressure filler and single head seamer and will allow for initial production volume of 1,000 24-can cases per 8-hour shift.

The cans will be supplied by Ball Corporation, a leader in the packaging industry with a history of developing solutions to ensure products stand out on store shelves. Ball's ability to help differentiate products and make them more attractive to consumers, especially the RTD cocktail and wine segment which are geared toward younger consumers, makes packaging a key tool to help catch consumer's eyes. With its strikingly slender silhouette, the slim can cuts a fine figure, making it the perfect away-from-home companion. The slim can is a smart format for brands seeking to target single-family households, and time-constrained consumers looking for high-quality, convenient, immediate drink solutions. This is a convenient alternative for those who have active lifestyles.

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 lineup 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, or follow the company on Twitter and Facebook.

Important Cautions Regarding 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.

Company Contact:

Eastside Distilling
[email protected]

Motherlode Craft Distillery
Allen Barteld
[email protected]
888-998-6389

Investors:

Robert Blum, Joe Diaz or Joe Dorame
Lytham Partners, LLC
(602) 889-9700
[email protected]

SOURCE: Eastside Distilling, Inc.


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