Two CBD projects currently in production
PORTLAND, Ore.–(BUSINESS WIRE)– Eastside Distilling, Inc. (NASDAQ: EAST) today announced it is offering CBD beverage co-packing as a service for third party companies that are entering the CBD beverage market. Building from Eastside’s proprietary know-how gained in developing its Outlandish branded CBD product, Eastside believes this service could become a significant profit center if the CBD beverage market meets current expectations for exponential growth in the future.
Eastside, through its Craft Canning + Bottling (“Craft”) subsidiary, is currently under contract with two companies to produce CBD beverages as a service and is negotiating with four other companies with which it hopes to finalize contracts. The Company has had dozens of inquiries for this service, but only just recently completed the preparations management deemed required before offering it. Those interested in learning more about CBD co-packing should contact [email protected].
Owen Lingley, Chairman of Craft Canning + Bottling and an Eastside Director, commented, “We are a canning and co-packaging leader in the Pacific Northwest, so servicing an explosively growing market like CBD beverages is really just a no-brainer. When we developed the Outlandish CBD beverage line that we recently launched as an Oregon-only product, we gained a great deal of valuable know-how. We invested in components dedicated 100% to CBD in order to eliminate the risk of cross contamination and ensure that no CBD containing liquid can ever cross paths with any other product we produce. Producing CBD beverages can be challenging as compared to other products and we expect to profit from our expertise. Our geographic footprint in the CBD friendly states of Oregon, Washington and Colorado are also handy as a competitive advantage.”
In addition to its new CBD offerings, Craft stands out for its wide range of high capacity equipment, including a full suite state of the art test equipment for quality control, enabling Craft to meet the most demanding customer standards. Craft can co-package at its facility in the Portland area or through its mobile packaging operations in Washington and Colorado. The canning capabilities extend across a full range of formats, including 187 ml, 200 ml, 250 ml, 355 ml (both 12 oz standard and “sleek” diameters) and 375 ml. Craft has the ability to produce over 500,000 cases of bottled or 2.7 million cases of canned product per year.
In May 2019, Eastside unveiled the Outlandish brand of CBD beverages, produced and now offered strictly in Oregon only, pending anticipated regulation by the FDA. The Outlandish lineup of ready-to-drink (RTD) cans initially includes three primary products: a seltzer, a ginger, and a quinine tonic. Outlandish includes CBD and can be used as a “mixer” in uniquely designed drinks or consumed entirely on its own and is believed to be the first CBD beverage produced in a 187 ml slim line can.
Outlandish and Eastside Distilling make no claims to health benefits of CBD. We encourage all our customers to do research of their own. Although the 2018 Farm Bill legalized industrial hemp-based products containing CBD, the US FDA is considering proposed regulation of CBD and other hemp-based products sold in interstate commerce. Outlandish beverages are strictly limited to sale only within the state of Oregon and are intended to comply with applicable regulations in Oregon, which legalized industrial hemp products in 2014.
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 Redneck Riviera Whiskey, Burnside Bourbon, West End American Whiskey, Goose Hollow Reserve, Below Deck Rums, Portland Potato Vodka, Hue-Hue Coffee Rum and a distinctive line of fruit infused spirits. Eastside Distilling is majority owner of Big Bottom Distilling (makers of The Ninety One Gin, Navy Strength Gin and Delta Rye whiskey) and the Redneck Riviera Whiskey Co. All Eastside, Big Bottom and Redneck Riviera spirits are crafted from natural ingredients for quality and taste. Eastside’s Craft Bottling + Canning subsidiary is one of the Northwest’s leading independent spirit bottlers and ready-to-drink canners. The Company also owns Outlandish Beverages LLC, an Oregon LLC for making and selling products that don’t have alcohol, but include ingredients such as CBD. 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.
Certain matters discussed in this press release may be forward-looking statements, including those related to: plans for distributing, and the success of, the Outlandish products; adding additional product lines and product launches; actions or positions of the FDA; the regulatory environment for CBD; consumer acceptance of CBD; and the potential for the Company‘s products. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: Actions or positions the FDA or other regulators may take in conflict with our product launch and plans; unanticipated enforcement action; lack of acceptance of the Company’s products by consumers; failure of the CBD market to grow; changes in regulations; lack of regulatory approval of CBD on a nationwide basis; the Company’s success in product development; the Company’s ability to execute its plans; and all the risks and related information described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”).
View source version on businesswire.com: https://www.businesswire.com/news/home/20190702005133/en/
Company Contact:
Eastside Distilling
Steve Shum
971-888-4264
[email protected]
Investors:
Robert Blum
Lytham Partners, LLC
(602) 889-9700
[email protected]
