Sign up to SCR Digest, our FREE weekly newsletter, and receive our Notes emailed directly to you.
Email Address *
First Name
Mailing Lists *


































































































































EAST: Eastside Distilling, Rich, Glazer’s and Walmart is an unbeatable combination in California. Successful launch of RRW pushes sales and earnings higher.

03/09/2018
By Ian Gilson, PhD, CFA

NASDAQ:EAST

Southern Glazer's Wine and Spirits, the largest spirits distributor in the US by a factor of 2, will distribute Redneck Riviera Whisky (NASDAQ:EAST) in California, the largest spirit consuming state, using its Walmart team (and others) to reach grocery chains and liquor stores.
 
Southern Glazer's is already a distributor of Eastside's products and RRW has generated significant interest in California. Shipments will start this month.
 
We have increased our revenue and earnings forecasts to reflect pipeline (inventory) filing in the first half of this year. We have adopted a conservative stance, after adjusting for seasonality, for the second half and into 2019.
 
Our published revenue numbers are based on net sales and not gross sales (net sales plus excise taxes). Gross sales will be impacted by the decline in excise taxes which is significant in 2018. In prior years excise taxes have been close to 30% of gross sales and will be dropping to less than 10% of gross sales in 2018.

READ THE FULL RESEARCH REPORT HERE.


SUBSCRIBE 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. 

DISCLOSURE: Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full Disclaimer HERE.
 
User ID:
Password:
Remember my ID: