Market Overview

Eastside Distilling Begins to Benefit from the 2017 Craft Modernization and Tax Reform Act

Share:

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.

View Comments and Join the Discussion!