Eastside Distilling inc., Portland, Ore., reports gross sales plunged 22% to $3.3 million, primarily a result of less canning and bottling business. The company’s net loss widened a bit, to $1.9 million from $1.8 million.
The canning and bottling problem is simple: As industry supply chain operations became less impactful and on-premise accounts reopened, brewers shifted sales to on=premise bottle and keg packages, resulting in mobile beer canning to decrease.
Sales of spirits were down from last year due to Azuñia supply chain constraints, California distributor management of Portland Potato Vodka and slower distribution expansion outside Oregon due to distributor issues. Sales of spirits were primarily down from last year for three reasons: 1) Azuñia supply chain constraints, 2) California distributor management of Portland Potato Vodka and 3) slower distribution expansion outside Oregon due to distributor issues.
During the third quarter, the Company delivered 9,725 cases of spirits, excluding Redneck Riviera. Azuñia benefitted from the slow recovery of the on-premise business. Burnside distribution outside of Oregon decreased in part due to distribution changes. The rollout of both Burnside, Portland Potato Vodka and Eastside Brands have been slower than anticipated as the Company has had to restructure its distribution strategy. These brands have also faced tougher comparisons to the prior year due to the surge of “at-home” consumption.
Despite the slight loss, the company said it continued improving its cash position and reducing debt. It also issued 900,000 common shares as a result of exercise of warrants, resulting in $2.4 million of cash, allowing the company to fully fund a key component of is strategic plan, the company said. It also issued 900,000 new 5-year warrants with a strike of $3.00 per share. In addition, the Company issued 718,225 shares of common stock for net proceeds of $1.9 million.