Eastside Distilling Inc., Portland, Ore., reports consolidated sales grew 4% in the first quarter to $3.2 million, and net income was $3.7 million, or 33 cents a share, compared to a year-earlier loss of $3.5 million.
The higher sales number was driven by increases in the company’s canning sales and services. Eastside said canning sales had benefited from a shift in consumer preferences to consume alcohol at home rather than on-premise locations.
During the first quarter, the Company delivered 8,913 cases of spirits, excluding Redneck Riviera. Of that total, Portland Potato Vodka (“PPV”) represented over 4,500 cases as the PPV brand continues to accelerate the expansion of its distribution outside of Oregon. The Company shipped 2,921 and 1,026 cases of Azuñia and Burnside, respectively. The Azuñia brand continues to be affected by the shut-down of on-premise accounts in the West.
During a conference call with analysts, officials noted the company benefited from restructuring that was intended to lower its cash burn rates and said it has been focused on improving operating income, reducing operating expense and breaking even.
Eastside has cut its sales force payroll to $1.2 million from $3.3 million. “The key is to hire and deploy the right people,” one executive said.
“Mobile canning is the heart of the company,” the official continued, noting it was as 85% to 90% of capacity. With a mobile operation, it’s impossible to pasteurize products. “But a fixed location would let you do pasteurization. A $500,000 investment could convert to $3 million in sales. The company is currently trying to improve its bottling operations with an intent to begin mobile bottling of spirits products.