Eastside Distilling Inc. reports a net loss for 2021 of $2.2 million, narrower than the year-earlier net loss of $9.9 million.
Net sales for 2021 decreased to $12.4 million from $14 million for the year ending December 31, 2020 primarily driven by a decrease in mobile canning revenue. During 2021, craft brewers have begun to shift sales back to on-premise locations that utilize higher margin kegs. Increased competition in aluminum canning and higher supply chain costs impacted the Company’s ability to achieve its sales and margins targets in its Craft C+B business.
During the fourth quarter, the Company delivered 8,388 cases of spirits, excluding Redneck Riviera. Of that total, Portland Potato Vodka represented over 4,700 cases as the brand did grow distribution outside of Oregon. The Company shipped 2,032 and 1,299 cases of Azuñia and Burnside, respectively. The Company took strategic price increases in the fourth quarter to offset higher cost of goods, which had an impact on sales. The Eastside brand launch was impacted by lack of brand awareness and did not offset legacy brand volume.
The Company’s spirits division reported lower sales from the prior year due to Azuñia supply chain constraints and a lack of attention from distribution partners resulting in a slower than planned expansion of distribution outside Oregon. In addition, the Company reduced deep discounting, which resulted in lost chain account placements in California and other markets.