Eastside Distilling, Inc. acquired a majority stake in Big Bottom Distilling (“BBD”), a Hillsboro, Ore., distiller of super premium gins, whiskeys, brandies, rum, and vodka. BBD was founded by Ted Pappas and will continue to operate as a distinct business entity. It will produce spirits in collaboration with Eastside’s Master Distiller and EVP of Operations, Melissa “Mel” Heim.
BBD craft spirits are primarily distributed in Oregon, California and Illinois. Eastside intends to leverage its own distribution base and sales team, on a selective basis, in the U.S. and Canada.
Ted Pappas, Founder of Big Bottom Distilling and past President of the Oregon Distillers Guild, commented, “This is the ideal opportunity we have been seeking for Big Bottom Distilling. This relationship with Eastside will allow us to grow at a faster rate and get our products distributed to a broader market. This will also give us the opportunity to focus on our single malt whiskey production and establish our position in this category. We will continue on the path started in 2010 and retain the integrity, quality and identity that the company was founded on while integrating into the overall organization.”
The transaction is structured as an exchange of 84,286 Eastside shares for BBD LLC units, and will maintain the independence of BBD as a separate entity underneath the operational umbrella of Eastside Distilling. BBD and Eastside will benefit from brand synergies because of the limited overlap with Eastside products. Eastside will devote sales, marketing, financial capital and production resources to expanding BBDs business, which in 2016 had total revenues of approximately $201,000.