Eastside to Can Wine for Oregon-based Dear Mom Wine Co.

Capitalizing on the fast-growing market for canned wine

PORTLAND, Ore.--()--Eastside Distilling, Inc. (NASDAQ: EAST), a producer of award-winning spirits, along with canning and bottling capabilities through its MotherLode subsidiary, today announced an agreement with Dear Mom Wine Co. to begin canning their full lineup of wines.

Dear Mom Wine Co. is an emerging Portland-based producer of premium Oregon wines, including an Oregon Red, Rosé, White and soon-to-be-launched Sparkling. Launched in 2017, Dear Mom Wine Co. pays homage to the women who create us and inspire us to dream and thrive. Dedicated to providing a premium and convenient wine experience that will have a far-reaching impact, each month they will donate a percentage of proceeds to a charity whose work benefits moms locally and globally. Dear Mom Wine Co. was started by two high school friends, Robert Karmin and Jonathan Canter.

Grover Wickersham, CEO of Eastside, said, “This is the quarter when our vision of being in on the ground floor of single serve wine canning starts to take shape as promised. We expect to launch wine canning this month with our first production and ramp the business as fast as we can reasonably and practically do so. Having product on shelves is going to go a long way towards establishing our credibility with the scores of wineries in Oregon and Washington that we see as potential customers.”

Eastside’s custom built canning line will help drive efficiencies and meet the expected growth demands for Dear Mom Wine Co. in 2018. Dear Mom expects to ramp their production from 6,000 cases in 2017 to 16,000 cases in 2018 with current distribution into Oregon and Southwest Washington and planned expansion into the Northeast and Florida in 2018.

Currently, Dear Mom offers multiple unique Oregon-based canned wines, including:

  • Oregon Red: A syrah and viognier blend from Applegate Valley. The grapes were fermented separately in stainless steel and then blended late in the winter. With a ruby red appearance with great clarity, hints of dark cherries in fields of lavender on the nose, and plums, cherries and cranberries on the palate;
  • Oregon Rosé: Made from Pinot Noir grapes grown in the prestigious Willamette Valley. The fruit was picked early, de-stemmed, and immediately loaded into the 7-ton press on a gentle setting. The juice had 11-14 hours of “skin time” producing a light, elegant shade of pink. The resulting wine is quite dry and has quintessential pinot noir qualities with a nose of cherry blossoms and such a lovely texture on the mouth. Light hints of strawberry and floral tones in the mouth with great acidity.
  • Oregon White Wine: the blend is a tribute to those wines - Viognier, Marsanne and Roussanne - grown sustainably and at high elevation in the Rogue Valley and Applegate Valley of southern Oregon. The higher elevation allows for nighttime cool air to pass through which lends a positive influence by adding acidity, and character. We love the intense aromatics which remind us of wild lavender and citrus, and the palate shows some crisp notes and stone fruit along with hints of Meyer lemon and more savory herbs like rosemary.

MotherLode and Dear Mom Wine Co. are capitalizing on significant growth trends taking place within the canned wine market. The canned wine segment is growing due to new entrants and innovation, primarily due to a new wave of consumers seeking convenient alternatives to fit their active lifestyles, as well as the sustainability benefits of cans. Reports show that the sales of canned wine have doubled for each of the last two years.

MotherLode’s wine canning line includes such features as a 5-head counter pressure filler and single head seamer and will allow for production volume of 3,000 24-can cases per day. The custom built canning line is designed to produce Ball Corporation's popular "slim can" in 187ml, 200ml and 250ml sizes. For Dear Mom Wine Co., MotherLode will be canning 187ml cans, allowing for a four-pack case to be the equivalent of a typical 750ml wine bottle. With its strikingly slender silhouette, the slim can cuts a fine figure, making it the perfect away-from-home companion. The slim can is a smart format for brands seeking to target single-family households, and time-constrained consumers looking for high-quality, convenient, immediate drink solutions. This is a convenient alternative for those who have active lifestyles. Overall, the line will be able to can wine and RTD beverages containing up to 20% alcohol by volume.

Robert Karmin, the visionary behind Dear Mom and its winemaker, commented, “At Dear Mom Wine Co., we look to go beyond standard. We have produced exceptional wine, developed from the highest quality fruit, picked by extraordinary people that are good stewards of the land. As we look to grow our business, we were looking for a partner that shared in those same values, and had the capabilities to help us maintain the growth in our business going forward. MotherLode is that partner. We look forward to a long and mutually rewarding relationship.”

Grover Wickersham, CEO of Eastside Distilling, added, “We couldn’t be more excited to be helping Dear Mom Wine Co. to drive their business forward. Our canning capabilities allow for customers to become more efficient in their canning operations, while meeting the surge in demand that many canned wine companies are witnessing. The trends are definitely in canned winemakers' favor, and as one of the few companies in the western U.S. that has this canning capability for third party applications, we look forward to helping other customers meet this demand into the future.”

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 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 MotherLode Bottling subsidiary is one of the Northwest’s leading independent spirit bottlers and ready-to-drink canners. 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.

Contacts

Company Contact:
Eastside Distilling
Steve Shum, CFO
971-888-4264
inquiries@eastsidedistilling.com
or
Motherlode Craft Distillery
Allen Barteld, 888-998-6389
sales@motherlodecraftdistillery.com
or
Investors:
Robert Blum, Joe Diaz or Joe Dorame
Lytham Partners, LLC
602-889-9700
east@lythampartners.com

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