EAST - Earnings call transcript Q4 2021 | Eastside Distilling, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Eastside Distilling Fourth Quarter and Yearend 2021 Financial Results Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Amy Brassard, Eastside's Corporate Affairs Director and Corporate Secretary. Please go ahead.

Amy Brassard

you. Thank and financial joining quarter results XXXX. everyone, discuss today and you Distilling's Eastside for thank afternoon, us for to yearend Good the fourth Amy Corporate Director your I'm for Corporate I'll moderator and be and call. today's Eastside's Brassard, Secretary Affairs

call Executive Lancer, Officer. us Chief Company's results are company's and Controller Milton, the the Chief Commercial Financial and discuss Mr. Joining to these Amy Gwin, company's Geoffrey Chief today's the Tiffany Ms. on Officer Interim Officer, Ms.

call the lookout to questions. Following details More our mid their and open remarks, planning host to our the come. will wanted to we're also on QX May, to sometime shareholders to date an for your late all Annual mid we I regarding Meeting Investor summer. XXXX also Portland results Day be release announcements in

forward-looking plans, the and meaning amended, amended, Exchange cautioned we Listeners future of planned, such anticipates, management as risks the XXXX or before in statements. following ability success projected. cause market, to, and that eventually success products as actual are are statements. may call ability matters are Now Litigation to uncertainties the future, risks Safe company's results the to materially results acquired the of all describe on to such XXXX. matters in the future of could and Securities product submit pursuant filings we statements or to and for financial the the preceded risks plan including are Harbor that or with development, obtain circumstances, generally execute Reform that pertaining Act results expected, subject of Eastside to with the and the XXXX information materially and in remarks, ended will related in going expectations, Commission. the with strategies Private the the provisions time of and but may, its to record the Act of in Form The the words or not of Exchange December from XXE and to Distilling a time Exchange concern year strategic within Securities by by begin for those plans, and of should, statements Such limited made or of this customers, events information described the Section the ability report Act entities company's be cause forward-looking Section to statements capital, uncertainties involve forward-looking obtaining to discussed continue the acceptance and in forward-looking Securities annual statements company's success Securities company's multitude differ are conference the statements related XXA such on Certain and integrating projected from new XXXX filed differ prepared and may model the as Commission, Securities assets, draft, business XX, XX-K include,

over the I Geoffrey, Geoffrey Gwin. proceed. said, with Now like that please turn call would to to

Geoffrey Gwin

Amy. you, Thank

to our the Interim talk and my I've her of answer she your of in XXXX. through of during section improve questions. areas with quarter remarks begin course question-answer can quarter perspective quarter in the us I accomplishments CFO Tiffany Gwin, in the the you finally, CEO asked add details year As we today. would expect us the the major Geoffrey Amy and our said, the and what the this to take year, in from us Chief like the add Commercial I'll on Lancer, fourth our to my about clearly we'll our Amy year I and Milton Officer fiscal -- quarter, to of join welcome and can quarter will call call. conference am then upon the performance and XXXX and fourth about need call

year for restructured we such balance we a strategic program in was as margin and began an spirits. So Eastside successfully our year as XXXX and Distilling the delivered important improvement our sheet plan. some on We navigated three dynamic investment outlined key objectives, environment

a were our We disappointed at struggled in we metrics. the to other grow year Craft. in we through spirits, However, performance volume failed and environment with challenging

to see to digital focused long believe revamped do art We new XXXX significant this network year. strategically deliver business services on financial printing our products completely I'm are confident I However, the state goals technology bring term and the to Northwest. a in entered still of with can you'll our Craft track on the leverage opportunity to and Pacific progress growth we there

has this out gone to Portland paper and from having Now its on kind months. idea a of facility a in just one an digital printing handful in built of

In in to vision, growth. Testament the I a will them. is resilience the dedication entire that focus specifically and spirits, near our this the plans innovation, improvement executing are improvements drive investment is business and this of we execution. Oregon require and term Now performance plans celebrate and of craft team sustainable are The the of on the

that Blazers have we We to bring customers. thousands and winning such to And and award of spirits capable example Lay's teams with Vodka partnered the the innovation partnerships, the that sell product these this launch a can few think thousands Potato as we I saw Now in great Portland proven of delivering. things. and we our a of Moda invested do a year in new is last hours. key of to Trail Center And

vodka organizations, refugees plant community Heal Coast and Hood by through Bay, To our increased Potato commitment the trees, Ukraine, recently campaign American such the a proceeds sales from developed as Portland We to Forests, have IRC. our Oregon to with working also in to via

been markets, we Legacy Arizona, number and plan largely Texas. drive we've in market. have from with key talked believe impacted we Now has of a engagement and California, in our brands our there. revive this to the resistance strategy Last of distributor are done these year work as partnerships through improving in to important that there's redouble portion year, this our distributor spirit efforts met and competing last we invest of key above on support reasons Eastside A partners struggled brand about we key growth effort they our our and a and and for role lot to a the the are to our XXXX, growth in play launch brands home significant including we path our be to in but

we pre-pandemic across chain As and have Craft our spirits recovers, but the ability levels, demand believe will be positioned year, we time portfolio, both in off and our improving premise throughout nude our gross to growth effort invested we and manage margins. our on to to supply

increases, rationalization skew volume, it's which meant also in some required take and has time. cases invested in required these loss All this Now initiatives. supply price chain

had that on company. we of they and saw sales for term in critical Although profitable are negative these impact growth fourth volume, the initiatives again quarter, the a the long

work our We through expect the spirits and you do have business, should believe I to year. in more to see progress

in transformative outstanding we faces improvement pick to pace strategy We products go of on year ahead. a as execute The Craft market build compelling a category. in market our our there awareness up and will are starting markets. key with

milestones printing plans for old In we year beverage next taking are step the needs still shop out first This base. been Northwest custom craft Craft. of growth of a XX,XXX we first to we've foot calls, digital the into kind all and Craft square can us getting this XXXX, customer. services that in facility. quarter newly the Craft I'm our key business incremental truly unique say about and stop the one a Pacific of last growing close our vast in in offering beverage assortment is expanded at of its serve few of three us have our get talking to our will our make, investments to our plan. to Now make moved the to to We but have market, built in excited facility will facility key

other However, this can we steps, Craft step to in that order we've the supply, was the installation here buildout financings, well including facility deliver made sequential critical gets It's point. this since from partnership and and execute securing to component believe first of improve didn't highlight technology our also power of the have printing hyperlocal new I beverage. Digital in printing plan. if existing this we last business specifically year. marketing will Craft can craft our and will then strategic digital can

we is still are hyperlocal to Now in truth, of this marketing beverage, comes possible. what specifically it products Craft not well is in but term dreaming understood when consumer

and we is Now they is expanding been we craft this delivering market Craft argue, have customers merchandise allowing of our beverage in before. size had would us forefront to before. possible I are key that is trend never what never that's creative the this in a done and tools are technology

excited we plan I'm some about year. that summary, we have to that longer in assure improvements of opportunities believe to goal are to measurable you might to can capital to business. excited point the the I with deliver capital. before we no our in this both I'm grow businesses seek where want drive not incremental we term near is the doesn't year. also faster So we this need external a growth ability that to I sustain accomplish That mean us.

and will allocation. with However, measured to we capital disciplined be continue

to in will engage the as external us You we we to as our should and possible making. to many about our highlight strategy expect progress stakeholders progress be the are vocal year work and

Now, our Tiffany the who financial over us can performance company. Controller, I take turn Milton, like to of would the to it through

Tiffany Milton

joining Controller been I've Thank Eastside. company the you you, our XXXX. Tiffany for Geoff January I'm all thank with for call and Milton, the today. since

statements As call, yearend reflecting started audit this year, on I started was the our [audio we where financial the gap] for of I preparing and

Geoffrey Gwin

business a for of to is so I start finished from up call, base seen the we be by customer third the to that first getting facility going in AVL the to base of to that that our far. to next an that conference call, We're your buy. week was critical, the can facility to the we're the AVL we really were including need going ready to is critical everybody, digital frankly. …is deal what the cans pick conference is pretty talked as phenomenal for on year place fact shareholders. volume printing going close and on last I've comment, This go. is good And finance And we us when quarter which

important that them on of to was things of we disposables, is, challenges a making the year, think and sourcing selling pack understand for that, people sell disposables, to able decent the with margin on the weren't a struggle tack. the and call the and one face last them it's We problem. we I cans,

in the thing's have into not The and other that You volume number. up of and the cans. is It's twenties printing spit chew can can't on go to this millions. end out huge a going

up meet we make that And the make the had We strong so to to cans. sure partner and we the the had wanted capability line to that had sure a had we capital company. working needs of to partner

went got opportunities. December best to was deal as be covenants So, We into it. the was was our a it thought expectations couple we into we deal deal ended it wasn't was done what lined like the, a dilution the getting it, and we other quarter, got a There going in as good no this quarter, some thought looked deal. going sliding has that as we be. to as the at in the This we good and we deeper and up. was there turned provisions what And there third in a it up were, out felt no had deal. deal of not And

ball Unlike we're is the deal been other on and venture. covenants are, right? have built we the out you opportunity, printing. many a high access of can is one facing face need business with Right. make It's venture want and want as It's it's and that's what And a deals I it, of as that's to flexibility the as hit good Craft we so don't park. a as issues, as big it this sure pitch. I capital some what return, that you opportunity. growth as And lose good for a have forecasting good and the to where pitches. team is, is, we Tiffany

on all that we this And be I so results that made. the done, and sure the hopeful make back structure this choices the needed we we're but to road, pleased the down got happy is that be to with I'm think with we'll going that that we've financing, looking

Unidentified Analyst

Got you.

rate So for just that really if, is on that the it. little share could need is these to Because, expand a interest why warrants? on high us bit, you enough

XX% exercise a that if these a get is if point by it do So, view from of potentially warrants just a we calculation, $X.XX right, seems shareholders' dilution.

to there get warrant that's So, that any loan. with be dilution so all this if want would exercised, together understand just at this input

Geoffrey Gwin

Yeah.

So, know, of every to when about the term have capital that through time you take that you the we item as changes a process and or plate, an here off cost think the banking thing impact. the went is the it you

case, things. in handful have of we a our So

We have rate, right? We we value in rate, package. optionality, interest have can warrant have we put the that the

the strict some put have things payment has principal the bigger we second certain have first still And and have of covenants, facility We that. Live other a in, two, we before, we Oak lien. that could district in amortization with last like could kind I put we is which and plans and capital of then lien thing like said the that things and

have right huge covenants. all So want that this opportunity the really all meets requirements we [ph], wanted as is opportunity. that Pat about see sees excited He and He He something didn't creditor upsides. fit formula with What was a these is to you'll here together, the Craft. put so in other we it worked.

was I with. having we up so think work with agree this I him and package the that to ended

everywhere some a multiples quarter did for this this a we for back the it's areas. looking down to saw good difficult pushing come right. in stock go small best a cap as know, pretty time. capital, and think we you I a was was volatile job And quarter pretty But not

made said a I think, I we think I if that think so than I a before, have into capital And that's investments gotten And out gone and deal was specifically a wider we these better this But could are critical. the this large is going gonna with that comfortable would've, returns we group. board like get I'm, the be, the made. and unusually from we're why to decision

Unidentified Analyst

Got you.

question last jump into one queue. the got just I So before I

I thing caning craft like think from margins clearly craft it's of we compare and XX% separately. surprising showing spirits the year see to I'd drop our strategic to are gross financials down one right to is plan. for three the And caning, now,

Our target is, XX% EBITDA margin.

down break actually digital again? in how like can So this could you digital this to help new bridge print

Geoffrey Gwin

Digital not, negative was if have on people some opportunity Well, that craft digital XX down on Sales is And about that, to was back is was as the their with way see Coke go in but think years, it's some we're were around Share opportunities XX it last probably the to for here, compared XXXX, attempted volumes Sure, they with people but of successful. end people started XXX XXX names. number and I is and a you Coke unleash variation And have thing more beverage quasi way sure. tried heard were conference more go was than immediately ago. up The up all idea printing that the is this Coke, Coca worldwide. cans, this way real if biggest think I've guys. there's the they Portland. facing XXXX. more share hugely that, did and hit was for network years a and result turned before, I they strategy. get their actually in marketing can they a do with one what the to they It it small hyperlocal about during campaign anecdotally no before, why than way print said they at I've this of pick it's they I And names they most dreamed individual's common hard to they It calls no apologize nothing the I that it There's transformation what could printing mentioned there, right. come might does the super because names XXX, to called to here picked What challenges the expensive. volume. and

store. of rid to bring and destroy personal the and me going this beer. $XX the If to this a when one past and invented my in beers that's my the goal weekend, paid grocery bought do. question, pack, to my I for almost bring four $X away of And get was best on crappy local is looking my opinion ask in $XX? store six I craft shocked was brewers at is make tools week world customer sorry, pack, walked I'm grocery was I is been you in of price opinion, and beer. four want And past $XX, this to I'm can at and get can directly with these to their like a beer again, aware ever your I small what a make and This $XX. answer how points, they It the -- That's product going more it's we're a guys them

they used said, is very saw we it. the never be us up it, with that in base probably customer even Portland. to and the get on creative going is these and to outstanding going tool it beer to and done, at cider, sticker They us, have of us just full point. that transform not as super I'm bring And By bring This and cost Portland is the stands know right? work we're that's they of to going they're we're it we're The to customers going people product. with the why is going That's in a and get same nothing. more I'm runs a it's that And that product the label got elevated back for creative so it's beer do And to going -- million yet basically it picked to other can. transform our to a is beverages, us. makes when command kinds all why That [indiscernible] label time going us they is this grocery and tool this working believe then, kick this on to out. price And to as they tool outgrown to is label. powerful to Always, creative, all picked of competition. the of beer but that able that heard That not markets It's have of able picked our United be and the the the the to States is, out. because get store going supply, one stood -- working manufacturers can destroy hottest, customer known work they label the of to most brand it's to transformational have of for but we pick they the strongly for retail You going people customers beer just nothing $X area well it's the happening incredible Anheuser-Busch and them to art. to could around every come It's what is really it at least, Forever involved win of we and It's because of the a be tool single colors -- in to craft have more good with. that want beer. customer that see a The deliver called it's before. we're known see point manufacturer it's it to on and premium And of could have a it's phone. we out this with want charge when I can a premium they base. this thing That's and with a lot going halfway now, in

major go before. we a we go Now after rates, incredible able to we after that weren't right? have can at can deal business And

of we investors this really a to it's company. it can to the I the point that's growth craft company So is spear in the to reward, that believe well, this reinvigorate believe to execute handsomely going is going really, be be big going this if and can, really and opportunity going for

Unidentified Analyst

All Geoff. right. Thanks,

support turnaround. the from that and here. Thanks, will I the of we following and the [ph] greeners closely a So, I hard team, you eventually Geoffrey. you over and together. want journey we've year are that say downs And appreciate past been to now cup we on in believe just work and company in we to right your the ups this continue

Operator

Our next from crater lakes. come ahead. [indiscernible] question go Please will

Unidentified Analyst

you're are recognize short doing in is what's Yeah. that so [ph] so going of see Geoffrey. Today my Hey, within think us a policy. of all can much recognize a I I doing I period regularly. that much. I time. And Hey, mind that you're through think tightening we concerning

persistent battling quite did It breakeven already is for self-funded right. quite wide gap it's are the are Essentially, stretched still We I like math. my money seems losing inflation. balance be right we now. and to us

on XX So I It long previous was know ago. not call was XXXX. that February, too our

So, this you that closed could that previous the any silver earlier call? see suggests be do since gap lining

Geoffrey Gwin

can we and the working, but is hand, end quarter weak we a between made when the but year, same. November, to of back on as Spirits we what look on in I the work as quarter We're look before, is won't revenue designing. that start statement again versus weaker and Lancer the in, do. we're that Amy half last other quarters versus the year the for business. and different same, mind, about team Eastside like to said about make same. the the can by year look for same. talking the a get in even here typically business us the growth that Yes, share other have and year I've completely you is Keep little does look you real, side, the into the the matter The fourth seasonally a of bump look spirits. it's for members maybe that have going point between weaker year, bit a on won't it both won't get at quarter, really it time Spirits margins I'll matter quarter as the a outlook be of this in talk some the We income Craft is comparison last our sequential call we've in for the a change won't progress. go The

think I the last outstanding disappointment we me for was year biggest had products.

get the burn-side core we've mistake They're make four fix work. it just extraordinary from really tequila back has Riviera, market and go then and Redneck while been, took has crappy that phenomenal bourbons. December, that and a November with our to the products we It Pendleton, and invested you volume, chasing get critical basically us a when right. don't struggling time you to no that of connection Our to times that are lost needed like the the things so right? Canadian to organized, to trying and money the of of was compare And brand. money, most much right, ridiculous, does them to that, and a a it's that losing to distributor whiskey, we blended losing really part focus opportunities focus challenge And our XX Portland

bar year in show that more money them there. tackling engagement doing hey, again. and, had Kelvin. say, launched At of investing. for that probably phone some second the in share to and gap, quarter, We're game local for to we'll of up last already funding you're the funding spent can gap to when on the We're selling outlook a step it aware, that see begins market finish pick start had the You big opened the first push, invested just probably some share But begin week, a believe in lot engage you doing I you But we'll plan, want about and to just a starts and that we've with the and It Amy, of had the Moda and you last more Trail of that. have time which more in you more going that. see about don't, special my on changes kicking takes be Amy Portland here the in market Blazers really the done really tasting and We stuff transformation Craft make a quarter. them, close. and to 'XX we've up spirits? to the for second We've is we're in Center. its that. Burnside part them start big doing we

Amy Lancer

to Sure. distribution. much have on to mean room so grow Geoff's point, I we

Vodka decent distribution very, on have, We premise and Burnside. Oregon, Potato on but Portland low and retail, very in the

We have retail. even at distribution low a very

for a as five distribution the high that's and and states So priority for core well. low us union as as

Oak is building on Also, the great work So Janet Center. very the Geoff doing distribution as we improving. performance brand the on focused the our engage distributors and those close activities Moda that business. gaps, We're you'll like see definitely base mentioned

Moda for and Center trailblazers Burnside, [indiscernible] PPB. So, for

difference. make should really that a big So

some Joe Azuñia Ibraham in our premise on to for cost the liquid and margin couple of work Oregon the terms have and whiskey is has another of Burnside. is and of [indiscernible] new in for California a Northern work also We on of we've optimizing focus in lot focus that, development people, and management one us working operations then on done now in exciting working one Azuñia done the to sales growth a down with get on

gross improvement well. margins see you'll So in an as definitely

Unidentified Analyst

second question. have a do I

the with that think printer. recently, arrival and company the we good, strengthened the I is digital think first is I the highest yeah, So saw some thing of most important

this terms I'm How as change and, bigger you does really customers printer? to the we So thing like sacrifice us, because, can could of much we pricing scale don't margins of a one same educate apply profitability about thinking to business revenue even is we hypothetically second and want have we in our well, that right, as

Geoffrey Gwin

a Right. we second to the to position we be startup the said, if the Pacific have in printer, I about Texas. a don't about this but know this space. big call, Austin, anything There's in second have we in a on as Well who printer, would did yet -- a say control great I And think are movers I've down Northwest. last really company

So we guys lot respect have a amazing. those are for of

It's digital to them two forward see different printing. and can their build You United of customers and in there's fun with on that printers the There's other parts other watch -- Instagram. States. are power

is craft move customers going with that reach capacity the it But, through just be if digital the our cans, can If have customers. put cans in up shrink the to that shrink this. heated mess like a on they largely it I to this of people this. pasteurized, a Pacific Kevin, of for also it's just decorate doing to they end But absolutely put more super because your it the and base up, customer one we're the can sleeve high we're they mention choices. have heat beverage. talked into they to label. with And get sleeve, not beer to we've They the can do that it now, about a shrink has kind beer up first capability, do decorating goal adding but, a product small, sleeve, Our more right and a before shrink have control they is I and with serve other to process brewery and means point, to they and printing, is canning it, non, this few before. serve, that more able it with going up Northwest would to to and touched that decorate a beer things label. can we're be their put The adding sleeve. opportunities cans usually their sleeve the do their shrinks and up messes label goes They are

fashion at can over, way and So the others like go was print ball customers and volume. That and to to with challenges, you only buying out can they're the you've be and losing decorate who to figure with year them means of the that is skew not do can how they're anymore supply. print which going specifically we who who the kicking logistical there's what these you've they're and seen customers a million about means old cans, printing, made out major to screen are all the the not all because basically their the people cans choice have a large heard with decorated States but going and what That United means a losing and producers, they don't there's some that they the are lot of actually, regionally that know least their over cans. in to is crown shipping probably to per cans all last cans

what didn't the serve we're to market. our and all initially, we we initially, was in customers what saw which was going see So customers the collect

a market Now we we're no realizing are lot have choices. our into they that there never touched who down bigger are because really customers falling other

get the margin you the that If need you're to need. in to capability environment, returns you you command the that have

win, -- our group as to a to would, be that's And our said manage their tools, the customer, and talked I'd own something and plan like give say more to the this more to of price plan, ability I've to them improves deliver this capital, is wider bigger more we've lower in important working a before better to because I working capital that about as catch savings. that's and capital product, like but to product, volume their a so the to working

sell bring together those one in can to a all think tricks, and Path we has and been the can pony so one. opposed as of trick And pieces bag just we whole back new is the pulled This pandemic it's what and it company been we before. completely it different what saw second in past. worked to from and came a the trick then out

and believe do investment going type. We're I with growing we're going bigger believe and ones, more capacity categories. and And to not just to more to grow able growing success, you're Pacific business to than in So more anymore. we're be customer more the opportunity, going I believe and Northwest. and craft see to be It's I the think, able to going be I to be a footprint grow brewers do going do skew. capture to going margins. we're line by

Unidentified Analyst

for great you Great. right. Thank much the All details. so

[indiscernible] market craft have So I'll million. in $X simple entry a just add business. right? and plus canning our like that's it's risk event Today about cap back spirit million, of million we $XX XXXX, remark, for $XX So in

of after is performed this have tons we So capital raising.

So it's either or the are market us, we unavailing is not something, getting right.

case to comeback. is So that believe link I first like this finally want strong a making and I the is really inside you, hope

we'll soon. and So, call. up catch hop to best back I'll luck of the

Geoffrey Gwin

Great, thanks Calvin.

correct. year. for results to to your market and time is think, we're I this see It's point deliver results going the

out You're Eastside there. we're that from comes going and my clear to only different the it is to going be to results, quickly to you're see and and able accelerate going a see hope

So how it let's see goes.

Unidentified Analyst

right. All

Operator

next question Please Aegis go from come Harold will Weber ahead. Capital. Our with

Harold Weber

what I -- little rate? to going is the producing would to When more a story. you like printing get run color be can regular on at this

Geoffrey Gwin

Right.

just a So the whole It's the printer, the machines, than it's And… more printer. system, right?

Harold Weber

running this is and on Not produce we're be be on to to that to able supposed based a it? but just consistently the pilot when production is system being on So quantities going run, basis. nameplate up

Geoffrey Gwin

week. Next

Next going week to… we

Harold Weber

based official month, million Is million the right, $X had year, a a capacity you thing $XX on about quoted this

Geoffrey Gwin

one don't $XX We in to go week it's… million

Harold Weber

I realize that

Geoffrey Gwin

shifts we've three much …that's the -- machine pretty customers. going but to multiple involves our right, shifts, scheduled first that full and running already

out. many base already I'd as scheduling We has our We're of have begin. schedules, customer third of number a up as them a signed to say

one jets, That deal go. up, last prices with That's already to the we've limited have bunch old the because of variable -- to up to and about. That's printing, We've finalizing basically in a have relation printers. Germans bought installation we of done, the it The of of step good often We got, printing. new that a cans. picture is goes the step kind the ink be to they're your really ton side in do pre and to bought of think up the running the about have you our things the of before of last worry We own ends you're as we're alignment is cans. one printer. don't once the facility the to a cued facility that's but cans ready

go, good that And so start. a we're prepped is We I pretty machine. think and this a Harold, going complicated do to have know ready we're to

machine we're the and few that's our we one customers don't time different of earlier a our have understand people have. North We that machine. of America capabilities other machine And machines from the our were teams to know our we lot some a has spend in testing that that were cans, customers we that delivered to Germany on

launch. So launch we for possibly a we've done this everything and can to thing seamless prep do

So I'm confident, team is confident. the

going and about take and shorter be we tool this filling excited can moving we're great immediately than think If advantages, a the designs plan make we shifts, time multiple to We'll have do who people is I earlier, game on many see ways, a schedule capital important market earlier don't times most production. we're successful. our go. this said from we have printing quarter. them And all a customers incredible on road. cans more what we're to If successful to want thing it, we just to advantage, printing I the go in a that and successful our planned, to people three I of much having to to market we is different here. the know. runs how Whether completely we customers this successful take can working initially three, The I in ways, giving than the outstanding down make their think make job in get customers initial we going on them that

be running right, ground people have a left thing to important wants dollars lot out us everybody of as much as and on most So spitting the this. to hit and winning the

So…

Harold Weber

trying I up get when an understand. of to be it's I'm you Well, going consistently. to feel running That's idea why and

Geoffrey Gwin

week. Next

Harold Weber

scheduling Okay. at a it's understand When the I guess to time. think you do Let's commercial? say, you're producing I going shift be a

going running Okay. shift That's the next be weeks? in fine. a Is full it four to

Geoffrey Gwin

Sure. Yep.

and off going Yeah. to We're Okay. running. be

Harold Weber

Okay.

based to would previous say numbers, that, three be shifts. means your based right? that according number that that use So running on million $XX on the Is let's

Geoffrey Gwin

are. just everybody progress how for and little this do ounces in cans of quarter updated up we looks business it, lot my Yes, this. like, million. a XX that XX than we're what but It's actual want it of to you too that associated There's this, well fast on but a to basically efficiency function going. script, going which making make on -- to many them to the you it's but we how pilot Harold, want to any transitions and in we're do very that, us number I on has pieces $XX a on more running critical to onboarded go can and bit see customers are, into wait -- to tell that, I get lot what the more quarter capacity figure I'm detail to getting so the report don't want the said, of graphics more how keep for bring between every and of this ounces. complicated many There's a it a with machine we I what will cans to to But out how percentage more they as

of having, a We will update we're we're lack having and full the market on it be. success the we getting or this where in expect at place scale success to

Harold Weber

yes Well, I'm pleased get update to is on three getting because this to hear not months that satisfying. an really

the expanding question progress The talked on spirits other side on yet. to that distribution Eastcoast we is about the

Geoffrey Gwin

Yes.

a before, the with and number have this Eastcoast goes think and I about of distribution back on this we've So years. talked talked we

Eastside, things if an pretty we've And the marketing three the tier you distribution have strength the can and at spirits in is that system to have profound. is One that understand anything people the about of has learned outstanding distribution control team.

successful really to a You but and Believe enough not, a very that's not great product is hard product can to compete spirits. that enough. that it is or in and, with, not be have unique

of distributor. bring to in have in a a You partner form a and sell sales

few you places. sell a and a You small go in can guy can with

you with go that online spotted the and engage can market can work. and top the an money have over go distribution, make to in retailer in shipping, limited you ton local very try of and a distributor can a pay or You

answer of into Now, your I'm in you store, particular the problem brands. craft liquor into when and a hundreds liquor is go with getting store, a that, store

bring you when your is out. a bringing market, you're brand you're and typically to a So you're brand taking doing what a brand in

goal. take vodka So going Oregon, off the brand the and in We're going taking [indiscernible], shelf. shelf. take we're off to in example, We're off for to to we're we're kill Pendleton. crappy our That's going them that going

be going market, try to place you has I've got try and I'm And weak Portland. I'm that's to Harold And didn't if I to going out. it So is tell back somebody go people to too we why And where in my keep beat do in our kicked. battle coast, DC the this, east to we're to told to the start got a that's really And got these year us, more butt It kicked. weak in [ph] of you the to out take a into last to ready Portland, to effort. your saying, We effort. we're butt it the to go We going start. right? best broadly. and hey, market. much that going And was We was do bring shit

to until fight we're to it do do we're we it to that to win Eastside home this we going and we're I we're to butt going going throwing it going do money and other kick we're ton of spending to fight could to and fight our products so to then now, with on wise we're where needs going in it. so going and new trailblazers, it and if people competition's do and to to keep win we're time rather point we're in very never markets, opportunities. long when it now. believe Portland we're this the go the sale spend but investment's win, done we're markets the with bring to and plan mint and going shelf other company. to And and the the seen market Craft back you've going we're going I people to strategy. I'd going get off that do we're our can Moda, going them at to do do in Burnside for stuff we going And to and to money be a with kick and of money done, Portland But it to what that's too then return going Harold put love and and great with would that can game Connecticut take like with take can't tomorrow we in with the we're it and

come Day believes team that this, and the When second it right? you're see visit we're going you believe focus in just to Investor Portland numbers, on when this, to do for going it. not So you to the we're quarter our And to board which believes to way is believe going it's craft. the time market the

and going sides we're and to done people's to you our going both we're We're in that notice we're You're to going Willy the prove year. to to factory this we're The on think put kicking going They've underdogs the chocolate Wonka summer. this knows And Portland. take to to butt we're machine, success show been of team see show ledger we're And going the team's you where in ready -- win I that going losing. big spirits. the in it. but we're win on

Harold Weber

a All Pepsi media sounds some other a or ago out lot months four hours you whole you course, generated you stuff next fine vodka. very social did on on three to anything with those of the bunch of and whole of nothing. of sold guys, products in that the products of buzz And without that, hours or

spending without zillion dollars some exposure and that getting do I you maintain other social here. stuff Okay. could media a

here. million There's Okay? people XX over

for there distilled there. got over believe the two that that I and market monstrous you guys, is spirits I people tell you, here a You million over

Geoffrey Gwin

I agree

Harold Weber

kicking at else's but and into efforts not Putting that some banking home. on somebody only

the mean what show do Okay. could you do key you're is to with to deal. Even you that, That big else if successful. doesn't success

going If great you're That nobody's beating you're Oh, take job. up home, to you're at a doing a that. guy okay. means that's, doing just

doing number in one over that think This I market to need America. be of some you the is here.

Geoffrey Gwin

If be doing Yes. to of be going But cases, have to we're we hundreds of XX… get correct. thousands That's we're there.

Harold Weber

hundred didn't about Let's of even waiting years. that, Yeah. on. for of loving thousands, cases. XX,XXX. sell hundreds that. thousand I'm sitting I'm a We see. I'm there Come waiting Get for

Geoffrey Gwin

there right the Oregon. that. Oregon, reality and talking ship -- XX booze is Harold. we're We're Yeah. about to XX,XXX X,XXX all cases, exactly We in the is pins in sitting it in way Connecticut. The all

whole -- they with have we advantage. That's Diagio cost why problem with at fighting Riviera. huge and destroyed Redneck Redneck a and This Promo the You're Riviera. with is got you're a

Harold Weber

I'm glad That's out not of our that's not a issue. product that. premium

our Our products? issue for is premium how do generate enthusiasm we

Geoffrey Gwin

Yeah.

point. were and So dominated And going They it. rolled a People and I, the I'm then to playbook took, made the Pendleton and made in started to market. national and became go introduced moved asked stage they table, they successful, the Tito a join passionate And that's and but the back one they to successful. that about home that it.

And in working opportunity Burnside that I have go once have big promoting not some to we authentic. come needed push right? have be it's we who's outstanding. transition over Jenner an right. don't authentic markets, you're have see. think at to fight believe it's this make than And rather Portland, going that name capitalized, sooner going your win I later. brand And it But to You your nor you I to Kylie in point, and can't based thinly, then unless us, or we an that's that got let's it's market and don't is hope going Portland spirits, someone because that, behind think and we're want We all

Operator

ahead. Ross Please next question with from go will Taylor come Our Partners. ARS Investment

Ross Taylor

it's in Geoff, hungry clear for your you. Thank traction process. Well, that are investors this

feeling of becoming you were understanding mentioned out is a early so And self-sustaining to progress, organization? going close making get kind want a you that have don't is when to more lot in I and remarks basically here. to a how year prepared your draw I an that to us it want just end at progress

Geoffrey Gwin

going market's see it, we from the give get but to if That credit we're meet be that's we even two of that the naturally to for execute the, wouldn't the table that don't on the for the basically I'm huge, company that plan, have credit to it. but today, want will our this than right, big raise much cash a to in lot going me cash growth the here, self-funded if extent you to very there's going been not here, I right? to give if be expect doesn't the would will the I'm then enough grow often a execute to would our to, we be years ourselves I'm and gap tell the own by point, If mean investments the that I generating growth to the pull that right, to going is tell we which you capital we we on year, needs, on end once, any of shorten we capability I'm the And you plan to do needed which to saying make do, business, us faster can year. we've running about going talking make we in with position much, for that table

that. that's So say I would what on

Ross Taylor

at would stage, and vision never Okay. to always company's think And it's I say lived vision. up this that, this I had big really its

top start summiting you Hood. KX, thinking would Mount getting of I about about to the before So think

Geoffrey Gwin

I agree.

the a pretty any the was all before, use this community. another go to them and and We're It's and business we're make Jeep form the and We making said, Marchionne comparing of cars to And going but in or huge that of the Jeeps, all the on he Chrysler. but Sergio Chrysler out export used the a and in a analyst failed going to capability and in Fiat to he we're was have us paper. take remember there. to scoffed front the Marchionne, to Hood's Sergio build succinctly, cars, produce, at them going sitting Europe, And I've we Mount probably laid there investing back money and right? the Although on mean way anecdote plan free to sitting mountain, he and not this we're flow crappy hair going ton I'll we're going to I cash and of him. is stop I'm

to do have same I the is we have to plan. need We execute we execute small there On the plan. And everything were remember the a was in All skepticism we everywhere. boat. scale, very

We have going surprise it to everything -- to this execute market this that comp a the could. we that's need down road company couldn't, little the plan that

that's we're team. great the going are so the result. the a up to the not do that, plan the to it's to And on have management up It's when the paper they call on ones team call, execute on that to the and

Ross Taylor

call. I've can call than think call, tone guys you important this sat because And time. I I people see that's remember hear want any traction. what it's think a a just I And with on agree. different think in the that I in the really tone This is you very to to it long in

you you that that this and really had you're just can conversation. believe listen to, know is If your I've be in you not hear to It's you And going passion clear, hard it. this. to successful can I'm

be I need think successful. to you

story that but can it of need financing to a We rolled me, over live to or wake to just I call another one this B, be booze show done we think I find don't I And mail top. next going with need from You I this us need you've here says of going that kind fear entity. an day that's And the do your to on in get need to there's to the you're you asterisk A, ways yet. and to need. working. start I away need all to think this where going to I back viable what equity you're that Connecticut. the is up people name at.

you've it got execute vision, think it, I philanthropy. with but execute a

Geoffrey Gwin

We appreciate do. I Ross.

Ross Taylor

talk Yeah. you later. Thanks. I'll to

Operator

[ph] will Capital. Please with come question Campbell Lourde ahead. next Our from go Matt

UnidentifiedAnalyst

Hey taking thanks taking, thanks Hi yeah. Can hear for the you me? for Jeff call.

Geoffrey Gwin

Yeah.

UnidentifiedAnalyst

we hard, lot printer yet, paddling guys is results make there. guys Okay, have you the been cool. duck little I'll the but now feels real That's that's you doing this see summarize Yeah, the just like going brief, water. to lake. can't some to that and gasoline work a of underneath move the It across give

been the like spirits Sounds business.

going You're got a you've issues margin cost improve those on. because now, worked to of you've lot

a slower and Day. that's you're that to we're and But Analyst of about exciting. said road hearing I not, or an business So Ross a them opportunity you're lot going like QX have showing it's and there demanding going for need looks because come it's the that, see love going to and whether customers that it. a are you're They you outlook the have better printing like have to business it

that feels good been has a footing. on fact applaud guys we're through but the turnaround, you really what it been So like long have

So thank and for all looking progress doing. you you're forward to the

Geoffrey Gwin

both this as Matt. hopeful I to for Thanks, where are think then get that really we versus where you see you summer. of you a where through to to able be we're, And can I'm are and number I be. we guys walk to to lot early said, have then. businesses are show Well, a And expect yourself going where you we out Portland we we'll benchmark and

Operator

I for closing any question-and-session. our to to concludes Gwin like back turn would over the conference remarks. Geoffrey This

Geoffrey Gwin

thing is This And what where start we I I I and how you, I way the company. thank with an think challenge huge about for and you times that this it to big and I say where it's [ph] tell that's me. this and that everybody the point want joke had, sheet when for looks passionate of in to passionate has I company that sitting almost It's is ends, I am the about market the company this about something and company have there company we've phone disappointing of to net spirits to there hard going is like of we its That sell, through to a it's to has And this think the, place in talk for sheet. and from made company motivating stock the are us investor if again, transformation deserves the be rewarded. running investor's hole. fact, I any back how had. was go worth call company the struggle a And Eastside. this tangible balance call. am we're I leadership win. a will to can have passionate Craft to joining to which This it So am think about a at most is many bottom a about are take LBOD take so want along capitals you difficulties in is has. and hole the And like the balance and a that better where needs me mistakes XXXXs.

for and be rewarded make on -- you business. to a laid you're us our a get where both you You out us going rewarded plan of to risk you point and to a we've get with take sides

I look going and you're the what back and to of we encourage you this, remote out performance at is sheet then the And do break businesses. so would go the balance to

to You're from what There outstanding watch sheet, the poorly have retained develop. be going hole. no and will returns been more be forward and from it. team to we're this complete spirits held the point, does with develops in craft -- that see does well, it going to going have. I fill can And and be does to it with The company earnings. going the great, the was call money how them opportunity And you about that the to last accountable If And do is you year. capital craft right my over I company. bottom -- there's that some investors be will is to that happens balance at it. If on of think going of going be transparency spirits has this today we the make the And of see with is there, to the goal of and we year. entrusted on used a capital enhance lot the

more So to reach stay I calls encourage set progress. up you We'll make as out to more Amy. engaged, some we

to critical said we'll first about May. in to digital printing now but to As guys the earlier and And in business. the lot then May you the inter and we'll when and We a on results. our were call, can or I of about see printing report milestones hopefully have we development going quarter Harold, quarter time don't have between more talk in we report April the of

So the taking to time with thank I that, again you tonight for soon. talk us we'll to talk want to and

Operator

concluded. for The presentation. conference now has you today's Thank attending

disconnect. now may You

Eastside Distilling (BLNE) 31 Mar 222021 Q4 Earnings call transcript