Eastside Distilling Inc., Portland, reports gross sales were $4.3 million, an increase of 154% compared to $1.7 million in Q2 2018. The company’s net loss widened to $2.9 million from $1.9 million a year earlier.
Branded and retail sales increased 39% to $1.5 million, compared to $1.1 million in the year ago period. Branded product shipments increased 57% to 11,697 cases compared to 7,445 in Q2 2018. Co-Packing service sales increased 389% to $2.7 million compared to $0.6 million in the year ago period. Including Co-packing sales, the Company shipped 356,280 cases during the quarter.
“During the second quarter, branded case sales increased 57% while total gross sales increased 154% as our Craft Canning + Bottling acquisition continues to surpass expectations,” said Steve Shum, Interim CEO. “Further, we improved efficiencies in our production operations where gross margins on net sales improved over the first quarter, helping to drive overall improvement in our adjusted EBITDA.”
“Eastside has created a fully integrated spirits platform the likes of which you generally only see from the much larger, multi-national spirits companies,” Shum said. “Our capabilities to create innovative products through our award-winning master distillers, develop attractive packaging and marketing around them through one of the industry’s most successful branding firms, produce in scale across a variety of packaging types, and sell through a national distribution framework with a network of tier-one distributors across 46 states is highly unique. It has taken considerable time, effort, and resources to create this platform which we are now beginning to recognize the true value of.”