By Ian Gilson, PhD, CFA
ESDI to double number of tasting rooms which will lead to an increase in profits.The company (OTC:ESDI) has announced that it will double the number of tasting rooms, from two to four, in Oregon. This is important for a number of reasons.Margins are significantly higher since there is no discount to the distributor. This can be seen in the third and fourth quarter financial results in prior years.Tasting rooms are excellent outlets for seasonal spirits and for local varieties that are produced in small quantities. These outlets can be used to gauge interest in small batches of special spirits and can be used to test the interest in a new spirit.Tasting rooms are very popular during festivals or special events where a lot of people stop and try a sample who would not enter a pub or bar. Venues can be selected based on attendance with a higher ratio of adults that are more likely to imbibe.READ THE FULL RESEARCH REPORT HERESUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR and to view our disclaimer.
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