Eastside Distilling: Vodka, Bourbon and Big Rich
11/22/2017 5:00 am EST
Eastside Distilling (ESDI) continues to put all the pieces in place for what is shaping up to be a very big win for everyone involved, explains Nick Hodge, small cap expert and editor of Early Advantage.
The firm's Portland Potato Vodka just won a Gold Medal and ‘Best of Category’ at the 2017 Los Angeles International Spirits Competition. It also announced its first 1,000-case month — an all-time record for the brand.
The company also reported third quarter financial results. Gross revenues were up 12% to $895,182 while case volume was up 55%, led by the vodka. Gross revenues for the nine months ended September 30, 2017 increased 28% to $2.6 million.
But here’s the thing: While these numbers were good and clearly an improvement over previous quarter, they don’t include any sales from the newly relaunched bourbons.
While still not yet complete, we do know that the West End Blend, Burnside Oregon Oaked, and Goose Hollow Reserve bourbons are now rebranded and ready to hit the shelves. So the numbers going forward should be even better.
Eastside has formed a subsidiary called Redneck Riviera Whiskey. That in and of itself would be insignificant until you know that Eastside will share equity in that subsidiary with multi-platinum American country music star John Rich, who is one half of the duo Big & Rich.
Big & Rich own a chain of bars called “Redneck Riviera” with locations currently in Nashville and Las Vegas. John Rich will use his star power and bars to drive sales of new whiskey that Eastside is making called Redneck Riviera Whiskey. Eastside now has star power that can go a long way in elevating the visibility of a brand.
The stock is the highest it’s been in a month. Momentum is building. The company is executing. And now it has Big & Rich on board. We are buying Eastside Distilling below $4.50; and once it passes that, I don’t think it will come back.