On January 30, 2020, Eastside Distilling (NASDAQ:EAST) gave guidance for the 4Q19. In 2018, the fourth quarter outpaced the third quarter and we had expected a similar pattern as tequila sales would be additive to case and sales growth (prices were increased for most of the tequila line by 10%). Management expects a more traditional seasonal relationship with a lower emphasis on retail sales.
Gross sales in the 4Q19 are expected to be within the range of $4.0 and $4.7 million.
Redneck Riviera continues to drive relationships with national distributors, the Burnside product line, with emphasis on brown spirits, is beginning to gain traction and we expect the newly acquired Azunia Tequila line to begin to penetrate national chains in the second half of the year.
Costco Wholesale, in Louisiana, will receive its first shipments in 1Q20 followed by Rite Aid in 2Q20
Eastside Distilling intends to reshape the business, eliminate special events and direct retail and replace it with on premise sales. This will result in reducing employee count with a potential charge to earnings in 4Q19.
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