PORTLAND, Ore.--(BUSINESS WIRE)--Eastside Distilling, Inc. (NASDAQ: EAST) announced today that it has begun benefiting from the Craft Modernization and Tax Reform Act of 2017 (the “Tax Act”). Enacted by Congress as part of the 2017 tax legislation package, the Tax Act reduced the Federal Excise Tax (“FET”) from $13.50 to $2.70 per gallon for the first 100,000 proof gallons per year, an 80% tax reduction. Under the new Tax Act, the FET payable by Eastside for the month of January 2018 was approximately $90,000 less than the amount payable under the rates that were effective prior to January 1, 2018. In the event that Eastside’s production reaches the 100,000 proof gallons per annum needed to fully utilize the tax benefits of the Tax Act, annual savings will exceed $1 million. The Tax Act expires in two years unless renewed.
Grover Wickersham, Chairman and CEO of Eastside Distilling, commented, “I want to express Eastside’s appreciation for the Tax Act and the cash boost it gives to craft distillers like ourselves. We look forward to reinvesting these substantial savings in growing our business on behalf of our shareholders.”
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.