Eastside Distilling Creates Outlandish Beverage LLC to Test CBD Infused Ready to Drink Beverages
Eastside Distilling based in Portland, Oregon the country’s only publicly traded craft distillery was recently granted a trademark to create a new subsidiary company called Outlandish Beverage LLC. The new company was created to get Eastside into the wild west of CBD – Cannabidiol infused beverages.
According to research released by CannabisNewsWire the market potential for cannabidiol (CBD) beverages alone could achieve a value of $260 million in the United States by 2022. CBD beverages form part of an even wider market for marijuana-infused drinks that is predicted to reach a value of $600 million in three years’ time.
Eastside Distilling has announced a go-to-market plan pre-sampling offering by Outlandish Beverages designed to take advantage of Oregon’s pioneering legalization of CBD, and offer aggressively in Oregon as a test market, pending a national launch. The timing of any potential national launch is dependent on the US FDA’s regulation of CBD products in interstate commerce. The full line of Outlandish CBD beverages, the first of which is a seltzer, will initially be available in Oregon which legalized CBD in 2014. Eastside believes that Outlandish will be the first CBD beverage produced in a 187 ml (6 oz cans) slim line can.
To comply with federal regulation, production will be separate from Eastside’s alcohol production and federally bonded space. Hemp CBD is regulated by the Oregon Department of Agriculture. Eastside expects Oregonians will begin to see cans on shelves at bars and restaurants during the second quarter.
The Outlandish Beverage Ready to Drink CBD Infused Starting Lineup
The Outlandish lineup of ready-to-drink (RTD) cans will initially include three primary products with further line extensions planned. The first three products include:
- Outlandish Seltzer Sparkling CBD
- Outlandish Ginger Sparkling CBD
- Outlandish Tonic Sparkling CBD
Outlandish beverages, formulated by Eastside’s Master Distiller Mel Heim, will include up to 25 milligrams of CBD. Outlandish CBD beverages can be used as a component in uniquely designed drinks limited only by imagination or consumed entirely on their own.
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Steve Shum, CEO of Eastside Distilling, said, “In Oregon, hemp CBD beverages of all sorts have proliferated and are widely accepted by consumers. We formed Outlandish Beverages, LLC an Oregon LLC to make and sell hemp derived products that don’t have alcohol and that are outlandishly different than what we currently see in the marketplace. We see this as a logical extension of our beverage business as we further leverage our production and distribution infrastructure in bringing Sandstrom branded Outlandish products to market.”
Robert Manfredonia, President of Eastside, added, “We want to take advantage of our location in Portland to enter this potentially large market through the currently open Oregon market while taking precautions to ensure we are conservative in meeting state and federal regulations in launching Outlandish. We are uniquely positioned to do so as an Oregon company. We are in close communication with our distribution partners in 46 other states and will seek a national presence the minute that federal regulators, particularly the FDA, establish clear rules for interstate sales. We are excited to be launching this new opportunity for Eastside as I believe our early-mover advantage will pay dividends for the company for years to come.”
Mr. Shum concluded, “Although the Outlandish line is designed to go to our natural customer base in the hospitality industry, we are keen to entertain partnerships with an established player in the cannabis and hemp space, where we can bring to the table our skill in beverage development and our knowledge of branding.”
Eastside has also formed an LLC in Kentucky as the preliminary step in a partnership with an affiliate of established agricultural company, Caudill Seed, to produce high-grade CBD hemp oil as an ingredient. The company has no plans to market or ship interstate before FDA federal legality is clear. And in keeping things legal, Outlandish makes no claims to health benefits of CBD.
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