Eastside Distilling appoints new CEO with dual roles

Eastside Distilling, Inc. (NASDAQ:EAST), a beverage company, has announced the appointment of Geoffrey Gwin as its Chief Executive Officer, effective from January 1, 2024. The announcement, based on an SEC filing, details that Gwin will also assume the roles of Chief Financial Officer and Chief Compliance Officer without additional remuneration.

Under the terms of the employment agreement dated July 3, the company has agreed to pay Gwin an annual salary of $300,000 for the first year, with subsequent annual reviews and adjustments by the Compensation Committee. Gwin's multi-faceted leadership role will extend for three years from the effective date, and he will also serve as Chairman of the Board of Directors, receiving compensation as determined by the Board.

The agreement allows for termination by either party at will. Should Eastside Distilling terminate the employment without cause, or if Gwin resigns with good reason, he is entitled to continued salary payments for up to twelve months or for the remaining term of his employment, whichever is less.

In other recent news, Eastside Distilling reported a strong Q1 performance for 2024, with gross sales hitting $2.5 million, largely due to a surge in digitally printed can sales and consistent bulk Spirit sales. Despite a net loss of $1.3 million and an adjusted EBITDA of negative $800,000, the company exhibits promising trends in their Craft Beverage and Spirits businesses. The Craft segment is seeing record digitally printed can sales, which are expected to boost Q2 margins.

Meanwhile, the Spirits segment remains steady, notwithstanding consumer trends of trading down. Eastside Distilling is refocusing its spirits investment toward profitable segments and regions, while their mobile canning business has achieved positive EBITDA.

New leadership hires and potential strategic partnerships are in the pipeline. These recent developments suggest that Eastside Distilling is strategically positioning itself for growth and NASDAQ compliance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.