Eastside Distilling (NASDAQ:EAST) reported very positive Q4 and year-end 2018 financial results, boasting a 104% increase in gross sales in the fourth quarter.
EAST has an adjusted EBITDA of $5.57 million in 2018, compared to $3.37 million the previous year. The company also reported record gross sales of $7.2 million, which represents a 90% increase from 2017.
Branded Product Sales Major Boost for Eastside Distilling
Eastside Distilling reported increases across the board, growing its branded product shipments by 135% to 13,949 cases in Q4, with 47% of those shipments being driven by Redneck Riviera Whiskey. The growth of its Redneck Riviera Whiskey sales is expected to continue through this year, with it now being available in regional chains such as Kroger, Walmart, Binny’s, Meijers, and Costco.
The company will also soon be adding Redneck Riviera Whiskey to 255 Safeway stores in northern California, with stock being added to the first group of stores this month.
According to Zacks Small Cap Research, the growth of Redneck Riviera Whiskey is “unprecedented in the craft spirits business” and is expected to fuel even greater growth for Eastside Distilling this year.
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Eastside Distilling 2019 Revenue Expected to Double
As mentioned, Eastside Distilling’s branded product sales caused the impressive result for last year, and some analysts expect these sales to further boost the company in 2019. The replenishment cycle of Redneck Riviera Whiskey is just beginning and continues to grow at rapid rates, with more authorized stores coming in line in the first half of 2019.
Eastside Distilling launched its first branded ready-to-drink product, the Portland Mule RTD Cocktail, last week. The company also plans to launch Outlandish CBD Beverage later this month in a bid to enter the growing CBD market.
The Portland-based company has been producing an extensive line of high-quality, award-winning craft spirits since 2008, which includes everything from whiskey to coffee-flavored rum.
By 3:14 pm EST, Eastside Distilling stock was trading at $5.67 USD, down $0.26 (-4.38%).
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