Description of Business

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Description of Business

1. Description of Business

Eastside Distilling (the “Company,” “Eastside,” “Eastside Distilling,” “we,” “us,” or “our, below) was incorporated under the laws of Nevada in 2004 under the name of Eurocan Holdings, Ltd. In December 2014, we changed our corporate name to Eastside Distilling, Inc. to reflect our acquisition of Eastside Distilling, LLC. We manufacture, acquire, blend, bottle, import, export, market and sell a wide variety of alcoholic beverages under recognized brands. We currently employ 91 people in the United States.

Our brands span several alcoholic beverage categories, including bourbon, American whiskey, vodka, gin, rum, tequila and Ready-to-Drink (RTD). We sell our products on a wholesale basis to distributors, and until March 2020, we operated four retail tasting rooms in Portland, Oregon to market our brands directly to consumers.

	Principal Brands
Gin
	Big Bottom The Ninety One Gin
	Big Bottom Navy Strength
	Big Bottom Barrel Finished Gin
	Big Bottom London Dry Gin
Rum
	Hue-Hue Coffee Rum
Tequila
	Azuñia Blanco Organic Tequila
	Azuñia Reposado Organic Tequila
	Azuñia Añejo Tequila
	Azuñia Black, 2-Year, Extra-Aged, Private Reserve Añejo Tequila
Vodka
	Portland Potato Vodka
	Portland Potato Vodka – Marionberry
	Portland Potato Vodka – Habanero
Whiskey
	Redneck Riviera Whiskey
	Redneck Riviera Whiskey - Granny Rich Reserve
	Burnside Oregon Oaked Rye Whiskey
	Burnside West End Blend Whiskey
	Burnside Goose Hollow Bourbon
	Burnside Oregon Oaked Bourbon
	Burnside Buckman RSV 10 Year Bourbon
	Marionberry Whiskey
	Big Bottom Barlow Whiskey
	Big Bottom Barlow Port Whiskey
	Big Bottom Delta Rye
	Big Bottom American Single Malt
	Big Bottom Zin Cask Bourbon
	Barrel Hitch American Whiskey
Special
	Advocaat Holiday Egg Nog
Ready-to-Drink
	Redneck Riviera Howdy Dew!
	Portland Mule – Original
	Portland Mule – Marionberry

Our mission as a craft spirits company is to become capable of building unique brands and authentic craft spirits culminating in a loyal consumer base through unique differentiation on a local, regional, and potentially, national basis, leading to potential opportunities to sell our most mature brands to the tier 1 spirits houses. This strategy was first demonstrated by our licensing and launch of our Redneck Riviera Brand (RRW). This demonstrated how our team can leverage its position to launch nascent or new brands and grow them because we are able to focus and dedicate more of our attention to developing innovative products. Our RRW brand went from idea, to market roll-out in less than nine months and achieved national distribution in 49 states in 18 months. In September 2019, we acquired the Azuñia tequila brand and have begun to distribute this brand regionally through our national platform.

Recent Developments

Introduction of new Redneck Riviera Whiskey “Granny Rich Reserve”. In February 2019, we announced the introduction of our newest product under the Redneck Riviera trademark - Redneck Riviera Whiskey “Granny Rich Reserve”. Representing the first line extension with the Redneck Riviera Brand, Granny Rich Reserve is a premium priced blend of traditional corn whiskey, aged three years or more, blended with American single malt aged at least four years.

Introduction of new Portland Mule Ready-to-Drink (RTD) Cocktail. In January 2019, we announced our landmark entry into the fast growing Ready-to-Drink (RTD) market with the introduction of the Portland Mule Ready-to-Drink Cocktail. Portland Mule comes in a 250ml, or 8.4 oz can, designed by the award-winning design team at Sandstrom Partners, and has a 10.5% alcohol by volume. In August 2019, we announced the Portland Mule – Marionberry flavor Ready-to-Drink Cocktail.

Acquisition of Craft Canning & Bottling – creates significant increase in canning operations. In January 2019, we completed the acquisition of Portland-based Craft Canning + Bottling (“Craft Canning”) a leading provider of mobile canning and bottling services in Oregon, Washington and Colorado. Craft Canning will combine operations with Eastside’s MotherLode co-packing subsidiary, positioning the combined business unit to be a preeminent local provider to the fast-growing wine and Ready-to-Drink (RTD) cocktail segments.

Acquisition of the high-end, luxury tequila brand, Azuñia. In September 2019, we completed the acquisition of Azuñia Tequila from Intersect Beverage. Azuñia Tequila offers four premium tequila products; Blanco Organic Tequila, Reposado Organic Tequila, Añejo Tequila, and Azuñia Black Tequila. These tequila products are primarily sold into on-premise locations throughout the western and southeastern United States. The Azuñia tequila brand provides Eastside Distilling with a second national anchor brand, along with Eastside’s Redneck Riviera Whiskey portfolio.

Introduction of new Redneck Riviera “Howdy Dew!” In October 2019, we announced the Redneck Riviera Ready-to-Drink Cocktail “Howdy Dew!”. Representing the second line extension with the Redneck Riviera Brand, Howdy Dew! comes in a 12 oz can, designed by the award-winning design team at Sandstrom Partners, and has a 5.5% alcohol by volume.