Eastside Sampling CBD Beverage in Oregon
PORTLAND, Ore.--(BUSINESS WIRE)--May 15, 2019--
Eastside Distilling, Inc. (NASDAQ: EAST) today announced the pre-sampling by its subsidiary Outlandish Beverages, LLC, of a new product line for the cannabidiol (CBD) beverage market. The Company’s go-to-market plan is designed to take advantage of Oregon’s pioneering legalization of CBD, and offer aggressively in Oregon as a test market, pending a national launch. The timing of any potential national launch is dependent on the US FDA’s regulation of CBD products in interstate commerce. The full line of Outlandish CBD beverages, the first of which is a seltzer, will initially be available in the state of Oregon which legalized CBD in 2014. The Company believes that Outlandish will be the first CBD beverage produced in a 187 ml slim line can.
The fanciful product branding, created by Sandstrom Partners, reflects Eastside’s continuing collaboration with Sandstrom. In conjunction with the Oregon launch, Eastside has formed Outlandish Beverages, LLC and will commence initial production runs of 187 ml (6 oz cans). To comply with federal regulation, production will be separate from Eastside’s alcohol production and federally bonded space. Hemp CBD is regulated by the Oregon Department of Agriculture, Eastside’s home state. Eastside expects Oregonians will begin to see cans on shelves at bars and restaurants during the second quarter.
The Outlandish lineup of ready-to-drink (RTD) cans will initially include three primary products: a seltzer-based, a ginger-based, and a quinine-based tonic. Further line extensions are planned. Outlandish beverages, formulated by Eastside’s award-winning master distiller, Mel Heim, will include up to 25 milligrams of CBD. Outlandish CBD beverages can be used as a component in uniquely designed drinks limited only by imagination or consumed entirely on their own.
Steve Shum, CEO of Eastside Distilling, said, “In Oregon, hemp CBD beverages of all sorts have proliferated and are widely accepted by consumers. We formed Outlandish Beverages, LLC an Oregon LLC to make and sell hemp derived products that don’t have alcohol and that are outlandishly different than what we currently see in the marketplace. We see this as a logical extension of our beverage business as we further leverage our production and distribution infrastructure in bringing Sandstrom branded Outlandish products to market.”
Robert Manfredonia, President of Eastside, added, “We want to take advantage of our location in Portland to enter this potentially large market through the currently open Oregon market while taking precautions to ensure we are conservative in meeting state and federal regulations in launching Outlandish. We are uniquely positioned to do so as an Oregon company. We are in close communication with our distribution partners in 46 other states and will seek a national presence the minute that federal regulators, particularly the FDA, establish clear rules for interstate sales. We are excited to be launching this new opportunity for Eastside as I believe our early-mover advantage will pay dividends for the company for years to come.”
Mr. Shum concluded, “Although the Outlandish line is designed to go to our natural customer base in the hospitality industry, we are keen to entertain partnerships with an established player in the cannabis and hemp space, where we can bring to the table our skill in beverage development and our knowledge of branding.”
Outlandish LLC makes no claims to health benefits of CBD. We encourage all our customers to do research of their own.
About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST) has been producing high-quality, award-winning craft spirits in Portland, Oregon since 2008. The company is distinguished by its highly decorated product lineup that includes Redneck Riviera Whiskey, Burnside Bourbon, West End American Whiskey, Goose Hollow Reserve, Below Deck Rums, Portland Potato Vodka, Hue-Hue Coffee Rum and a distinctive line of fruit infused spirits. Eastside Distilling is majority owner of Big Bottom Distilling (makers of The Ninety One Gin, Navy Strength Gin and Delta Rye whiskey) and the Redneck Riviera Whiskey Co. All Eastside, Big Bottom and Redneck Riviera spirits are crafted from natural ingredients for quality and taste. Eastside’s Craft Bottling + Canning subsidiary is one of the Northwest’s leading independent spirit bottlers and ready-to-drink canners. The Company also owns Outlandish Beverages LLC, an Oregon LLC for making and selling products that don’t have alcohol, but include ingredients such as CBD. For more information visit: www.eastsidedistilling.com or follow the company on Twitter and Facebook.
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company’s products in the market; the Company’s success in obtaining new customers; the Company’s success in product development; the Company’s ability to execute its business model and strategic plans; the Company’s success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the financial statements and related information contained in the Company’s Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release may include statements related to our strategic focus, product verticals, anticipated revenue, and profitability. The Company assumes no obligation to update the cautionary information in this release.
Certain matters discussed in this press release may be forward-looking statements, including those related to: plans for distributing, and the success of, the Outlandish products; adding additional product lines and product launches; actions or positions of the FDA; the regulatory environment for CBD; consumer acceptance of CBD; and the potential for the Company‘s products. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: Actions or positions the FDA or other regulators may take in conflict with our product launch and plans; unanticipated enforcement action; lack of acceptance of the Company’s products by consumers; failure of the CBD market to grow; changes in regulations; lack of regulatory approval of CBD on a nationwide basis; the Company’s success in product development; the Company’s ability to execute its plans; and all the risks and related information described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”).
View source version on businesswire.com:https://www.businesswire.com/news/home/20190515005535/en/
CONTACT: Company Contact:
Robert Blum, Joe Diaz or Joe Dorame
Lytham Partners, LLC
KEYWORD: UNITED STATES NORTH AMERICA OREGON
INDUSTRY KEYWORD: HEALTH ALTERNATIVE MEDICINE RESTAURANT/BAR NATURAL RESOURCES AGRICULTURE RETAIL FOOD/BEVERAGE WINE & SPIRITS
SOURCE: Eastside Distilling, Inc.
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PUB: 05/15/2019 09:00 AM/DISC: 05/15/2019 09:01 AM