Description of Business

6 Months Ended

Jun. 30, 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 85 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 Gin
	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
	Oregon 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 is to build craft inspired experiential brands and high-quality artisan products around premium spirits and Ready to Drink (“RTD”) craft cocktails. We will focus our core competency around brands, product marketing and distribution. We are building our branded spirits and mobile canning and bottling service division both organically and through acquisition to capture growth in the spirits, wine, beer, and RTD categories. Our growth in the mobile canning and bottling services is being driven through Craft Canning + Bottling, LLC (“Craft Canning”).

Our partnership capabilities were first demonstrated by our licensing and launch of our Redneck Riviera Whiskey brands (“RRW”). Our RRW brand went from idea, to market roll-out in less than nine months and achieved national distribution in 49 states within 18 months. We proved how our team could leverage its market position to successfully launch a nascent or new brand, while demonstrating our ability to focus and dedicate more of our attention to developing innovative products.

Recent Developments

COVID-19. As a result of governmental and self-imposed restrictions due to the COVID-19 pandemic, there has been a shift in on and off premise demand. On-premise business such as bars and restaurants have been closed leading to a decline in demand of the Azuñia brand which has been a predominately on-premise brand that we are actively seeking to expand wholesale. While off-premise business has seen an increase in spirits sales, the customer focus has been on major brands and larger format bottles which we do not currently have on the national platform. However, in Oregon the Portland Potato Vodka 1.75L has shown a dramatic increase in sales. Additionally, our Craft Canning operation has seen strong sales and customer bookings for mobile canning that have extended beyond the normal peak season. We believe this is a result of the transition from the use of kegs for on premise to the preference for cans for wider off-premise usage. This trend has been dramatic and has resulted in shortages of available can stock. However, the Company believes it has sourced enough cans to supply its current business plan.