Some big news coming out of the PDX craft distilling scene today…
Portland, Ore.’s Eastside Distilling, Inc. has announced the acquisition of MotherLode Craft Distillery, a Portland-based provider of bottling services and production support to craft distilleries. Since its founding in 2014 by Allen Barteld, the mission of MotherLode has been to enable craft distillers to increase their production and extend their product lines, reducing cost and increasing efficiency, thereby freeing them to focus on their craft. The typical MotherLode customer is a distillery of small batch, hand-crafted spirits, or a premium craft spirit sold as a private label.
Eastside plans to relocate much of its own operations to MotherLode’s facility and jointly expand both companies manufacturing resources. Plans are in place for a pneumatic bottling line, allowing for a 5 times increase in bottling rate, and large volume spirit handling capability. The Company believes the MotherLode operations will be immediately accretive to earnings. The Company further believes that cost reductions associated with the acquisition and relocation will exceed $200,000 per annum.
In addition to bottling services for distillers and other producers of spirits, MotherLode bottles “private label” craft spirits for customers who have on-premise or off-premise licenses including retail and liquor stores, bars, restaurants, events, and businesses who want to take advantage of the benefits that come from having their brand clearly printed on a label. MotherLode’s premium craft spirits can also be private labeled for corporate gifts, wedding, birthdays and other personal events.
As previously announced, Eastside has retained Portland-based spirits branding firm, Sandstrom Partners, whose previous work includes Aviation Gin, Bulleit Bourbon, Stillhouse and St. Germain. Management believes that MotherLode can help with new product development and the implementation of Eastside’s spirits branding ‘A high point of this merger is the recruitment on a long-term contract of Allen Barteld, a foresighted entrepreneur who adds to our team,” says Grover Wickersham, executive chairman of Eastside Distilling. “We hope to accelerate Allen’s efforts in the growing third-party craft bottling market.”
Eastside expects a return on its investment within a year to 18 months.
“We are extremely excited to be joining forces with Eastside Distilling, a fellow Portland-area craft distiller,” says MotherLode founder Allen Barteld. “Portland is known for its excellent craft spirits. I look forward to leveraging the capabilities of MotherLode’s bottling equipment and customer relationships for the overall benefit of Eastside. This is an exciting time to be involved in the craft spirits space.”