Eastside Distilling, Inc. (EAST): Business Model Canvas [Dec-2025 Updated]

You're looking at Eastside Distilling, Inc. and seeing more than just whiskey now; this company is running a fascinating, if complex, dual-engine model combining artisanal spirits with an AI-driven mortgage platform following the Beeline merger. Honestly, trying to map out how they generate revenue-from Azuñia Tequila sales to mortgage origination fees-while managing a negative EBITDA of -$3.82 million (LTM as of Feb 2025) against a TTM revenue of $8.12 Million USD (as of Nov 2025) requires a clear framework. Below, I've broken down their entire Business Model Canvas so you can see exactly where their $5M in recent funding is aimed and the real operational trade-offs they are making across these two very different worlds.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Key Partnerships

You're looking for the concrete partnerships that underpin Eastside Distilling, Inc.'s, now operating as Beeline Holdings, Inc., strategy as of late 2025. Here are the hard numbers and agreements shaping their operations.

The spirits production side relies on a key operational alliance. Eastside Distilling entered a production partnership with Rose City Distilling, announced on January 17, 2025. This multi-year agreement is structured under a TTB (Alcohol and Tobacco Tax and Trade Bureau) alternating proprietorship. The goal is to leverage Rose City Distilling's expertise to significantly expand manufacturing efficiency and capacity for Eastside Distilling's premium artisanal spirits.

For regional market penetration in Oregon, a focused marketing effort is in place. Eastside Distilling established a marketing and distribution agreement with Epicentric Marketing, also announced on January 17, 2025. This partnership is specifically designed to elevate brand visibility and engagement across Oregon, targeting both on-premise and off-premise retail channels.

The most significant structural change involves the strategic merger. Eastside Distilling, Inc. acquired Beeline Financial Holdings, Inc., a move that transformed the entity. The merger closed, and the collective family of companies began trading on NASDAQ under the symbol BLNE as Beeline Holdings, Inc. starting January 27, 2025. This transaction involved a debt-for-equity exchange and the asset sale of Craft Canning + Printing, effectively eliminating Eastside Distilling's debt. Shareholder approval for the change of control was secured on March 7, 2025, with the name change taking effect on March 12, 2025. Beeline brings proprietary technology and an AI-driven platform for mortgage origination.

Capital support following the public listing came from institutional backers. The Post IPO funding round in February 2025 secured a total of $5M. This financing closed on Feb 19, 2025.

Here's a breakdown of that specific funding event:

To achieve national spirits market reach, the company relies on established wholesale distribution networks. These partners span numerous states, ensuring broad availability for brands like Azuñia Tequilas and Burnside Whiskeys. The broader wholesale distribution industry, represented by the National Association of Wholesaler-Distributors (NAW), accounts for $8.2 trillion in economic activity and employs over 6 million workers nationwide.

Key wholesale distribution partners identified across various states include:

• Southern Glazers Wine & Spirits
• Republic National Dist. Co.
• Breakthru Beverage Group
• Young's Market Company
• Odom/Southern Glazers Wine & Spirits (Alaska)
• Central Distributing Co. (Arkansas)
• Worldwide Beverage Group (Kansas)

Finance: draft 13-week cash view by Friday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Key Activities

You're looking at the core actions Eastside Distilling, Inc. (now operating as Beeline Holdings) takes to deliver value across its two distinct business lines. This isn't just about making whiskey anymore; it's about running a technology-enabled mortgage operation alongside a legacy spirits portfolio.

Digital mortgage origination and loan processing via AI platform.

The Beeline Loans subsidiary is the growth engine here, using its proprietary technology. For the second quarter of 2025, the platform originated $15.1 million in residential mortgage loans, which translated to net revenues of $1.7 million for that segment. The operational efficiency is clear when you look at the unit growth; monthly closed loan units increased by 91% between January 2025 and September 2025. October 2025 was a key milestone, as Beeline Loans reported its first positive cash flow month.

Crafting, blending, and bottling premium artisanal spirits.

This is the foundation of the company, which builds experiential brands around high-quality artisan products. The spirits portfolio includes established brands like Azuñia Tequila, HueHue Coffee Rum, and Burnside Whiskey. While the focus has shifted, the spirits business still contributes to the overall top line. As of November 2025, Eastside Distilling's trailing twelve months (TTM) revenue stood at $8.12 Million USD.

Ongoing development and maintenance of the AI-driven FinTech platform.

The scalability of the AI platform is demonstrated by the fact that Beeline Loans achieved a 91% increase in monthly closed loan units since January 2025 while keeping the production payroll 'virtually unchanged'. This suggests a high degree of automation in the platform's development and maintenance cycle, allowing for operational leverage. The company completed a major financial goal by becoming debt-free in September 2025, excluding office leases and warehouse lines of credit.

Sales and marketing across two distinct industries, spirits and mortgage.

Managing sales and marketing requires distinct strategies for both consumer packaged goods and financial services. For the lending side, October 2025 saw 98 loans closed, generating just under $863,000 in revenue, which represented 44% of the total lending revenue for the third quarter. Separately, the title business within the lending segment recorded $175,000 in revenue in October 2025, representing 45% of its Q3 title revenue, with 106 title closings. The company's total equity at the end of the third quarter (September 30, 2025) was $51.7 million, up 6% from $49 million at the end of 2024.

Here's a quick look at the segment performance data available for Q2 and Q3 2025:

Managing TTB alternating proprietorship for spirits production.

The TTB framework requires specific documentation for alternating proprietorships, such as filing an application on form TTB F 5110.74 and providing a diagram of the premises showing the arrangement for alternation. The agreement must expressly state that the alternating proprietor is responsible for its own production, recordkeeping, reporting, labeling, and payment of taxes. The TTB's primary concern during review is ensuring the protection of each proprietor's revenue.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Key Resources

You're looking at the core assets Eastside Distilling, Inc. (EAST), now operating under the Beeline Holdings umbrella, relies on to execute its dual-focus strategy. These aren't just line items; they are the engines driving both the spirits and the FinTech sides of the business as of late 2025.

The financial foundation is solidifying, which is a key resource in itself. As of the end of Q3 2025, the balance sheet reflected a significant capital base.

The technology asset is central to the FinTech pivot. The proprietary platform is the backbone of the mortgage operations.

• Proprietary AI-enhanced digital mortgage platform, which supports loan approvals sometimes in as little as 15 minutes.
• The lending subsidiary, Beeline Loans Incorporated, achieved its first positive cash flow month in October of 2025.
• Monthly closed loan units increased by 91% from January of 2025 through October 2025.

The spirits portfolio remains a tangible, recognized asset, built over years of operation. These brands are the historical core of Eastside Distilling, Inc.

• Award-winning spirit brands include Azuñia Tequila and Burnside Whiskey.
• Azuñia Tequila reported gross 12-month sales of $3.5 million on approximately 13,000 cases sold through June 30, 2019.
• The Spirits segment achieved positive EBITDA and net income in Q3 2024, with sales increasing 14% from Q2 2024.

Physical and human capital are also critical. You need the place to store and ship the spirits, and the people to run both complex operations.

The physical asset supporting the spirits segment is the production and logistics hub.

• Milwaukie facility used for logistics and fulfillment of spirits.
• The company entered a production partnership in early 2025 to expand manufacturing efficiency and capacity while retaining control over recipes and operations at the Milwaukie location.

The management team represents the necessary expertise to bridge the gap between traditional spirits manufacturing and modern FinTech deployment. Honestly, having leadership experienced in both worlds is a rare find.

Finance: draft 13-week cash view by Friday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Value Propositions

You're looking at the core benefits Eastside Distilling, Inc. is delivering across its dual business lines as of late 2025. The value is split between tangible, high-quality consumer goods and a rapidly scaling, technology-driven financial service.

Craft Spirits: Premium, award-winning, artisanal spirits from the Pacific Northwest

Eastside Distilling, Inc. maintains its commitment to artisanal quality in its spirits division. The value proposition centers on premium ingredients and craftsmanship, distinguishing its product lineup in a competitive market.

The portfolio includes highly decorated brands such as:

• Azuñia Tequilas
• Burnside Whiskeys
• Hue-Hue Coffee Rum
• Portland Potato Vodkas

All Eastside spirits are crafted from natural ingredients for quality and taste. The Craft Canning + Bottling subsidiary also provides value by being one of the Northwest's leading independent ready-to-drink canners.

Digital Mortgage: Fast, fully digital, and AI-enhanced home financing process

The value in the lending segment, driven by the Beeline platform, is centered on speed, digital efficiency, and superior technology integration. The platform processes applications and answers borrower questions 24/7.

Performance metrics for the digital mortgage business in 2025 demonstrate this efficiency:

The overall mortgage market is projected to grow to $2.6 trillion in 2025, a 28% increase over 2024, positioning the digital platform for substantial scale.

Digital Mortgage: Access to non-qualified mortgages for self-employed or gig economy

Eastside Distilling, through Beeline, addresses a significant gap in the market by underwriting non-qualified mortgages (non-QMs). This is a key differentiator because most top 50 lenders will deny a borrower who cannot qualify for a conventional mortgage.

The underwriting for these loans is specifically suited for consumers with:

• Income earned in the gig economy
• Self-employed income streams

This focus targets younger consumers, as Millennials and Gen Z made up nearly 60% of all mortgages generated in 2023.

Operational: Cost savings on spirits production via the Rose City partnership

The multi-year production partnership with Rose City Distilling, structured under a TTB alternating proprietorship, is designed to enhance manufacturing efficiency and capacity. This collaboration enables Eastside Distilling to deliver cost savings on key products, which enhances customer loyalty and market appeal. Finance: draft 13-week cash view by Friday.

Technology: AI chatbot Bob converting leads at a 90% lower cost than human counterparts

The technology advantage is central to the lending segment's scalability, as the platform keeps production payroll virtually unchanged despite significant unit growth. The AI sales agent, named Bob, is directly impacting lead conversion and application volume.

Reported performance for the AI agent Bob includes:

• Six times increase in lead conversion.
• Eight times increase in full mortgage applications.

The lending subsidiary, Beeline Loans, achieved its first positive cash flow month in October of 2025, underscoring the efficiency of this digital and AI-driven platform.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Customer Relationships

You're looking at a company that, as of late 2025, is managing two fundamentally different customer relationship models following its integration into Beeline Holdings, Inc. The relationship strategy splits sharply between the digital-first mortgage segment and the traditional spirits distribution channel. This dual focus requires distinct approaches to keep both sets of customers engaged.

Automated, 24/7, AI-driven customer service for mortgage applicants. The relationship for the Beeline Loans subsidiary is heavily reliant on technology. The digital mortgage platform is the primary touchpoint, designed for efficiency. While specific metrics on AI-handled interactions aren't public yet, the operational success is evident: Beeline Loans achieved its first positive cash flow month in October of 2025. This efficiency is driven by the platform's scalability, which helped increase monthly closed loan units by 91% since January of 2025.

Direct-to-consumer (DTC) engagement via the digital mortgage platform. The digital nature of the lending arm inherently creates a direct relationship with the homeowner or investor. The company is positioning this digital process to be seamless, especially with new offerings like the fractional equity sale business, where they expect to close approximately 30 transactions by year-end 2025. The average fee structure for these direct equity sales is 3.5% plus title fees, indicating a direct revenue relationship with the customer.

Traditional sales and account management with spirits distributors and retailers. For the legacy spirits business, customer relationships remain rooted in the wholesale model. Eastside Distilling, Inc. sells its products, like Burnside Whiskey and Azuñia Tequila, on a wholesale basis to established distributors across the U.S. Key partners in this network include major players like Southern Glazers Wine & Spirits, Republic National Dist. Co., and Breakthru Beverage Group in various states. The company's primary distribution focus remains the Pacific Northwest, where its estimated regional market share in the craft spirits segment is 3.7%.

Brand loyalty cultivated through quality and artisanal spirits defintely. Loyalty in the spirits segment is built on product quality, which is crucial given the spirits segment's gross profit margin was approximately 15% in 2024. The CEO noted that collaborations are aimed at enhancing customer loyalty through cost savings on key products. Furthermore, the company has signaled a commitment to transparency regarding brand health metrics; they expect to begin sharing indicators like NPS (Net Promoter Score) and ROAS (Return on Ad Spend) in the coming quarters to better evaluate customer retention.

Here's a quick look at how the customer relationship strategies differ across the two core business lines as of late 2025:

The company is clearly prioritizing the scaling of its digital relationships, evidenced by the mortgage subsidiary's October 2025 positive cash flow month. Still, the spirits side relies on established, multi-state distributor relationships to move product.

• Digital engagement drives the high-growth lending revenue.
• Wholesale network ensures physical product placement.
• Artisanal focus supports premium pricing for spirits.
• Future reporting will include NPS for brand health assessment.

Finance: draft 13-week cash view by Friday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Channels

You're looking at the Channels block for Eastside Distilling, Inc., which, as of late 2025, is operating under the umbrella of Beeline Holdings, Inc. following a merger, meaning the channels now reflect both spirits distribution and fintech operations. Honestly, this dual focus complicates a single channel view, but we can map the distinct go-to-market strategies.

For the spirits side, the traditional distribution model remains central, focusing on getting premium artisanal spirits like Burnside Whiskeys and Azuñia Tequilas to the customer. The company is actively working to enhance this through partnerships.

The digital and fintech operations, stemming from the Beeline merger, represent a completely different channel strategy, which is mobile-first and technology-driven.

Here's a breakdown of the key channels and supporting metrics as of late 2025:

• Digital, mobile-first platform for end-to-end mortgage origination.
• Three-tier system: wholesale distributors to on-premise and off-premise retail (spirits).
• Direct sales to consumers via tasting rooms and online (limited by state law).
• Targeted digital marketing campaigns for Millennial and Gen Z mortgage customers.

The spirits distribution channel is supported by a specific marketing agreement to drive retail presence.

• Marketing and distribution agreement with Epicentric Marketing to elevate brand visibility across Oregon.
• Focus on both on-premise and off-premise retail initiatives for spirits.

The direct-to-consumer channel for spirits relies on physical locations, which are key for brand experience.

• Operations include tasting rooms on Portland's famous Distillery Row.
• The company's portfolio includes award-winning spirits like Portland Potato Vodka and Hue-Hue Coffee Rum.

The fintech channel, which is now a major component of the overall business, is highly digitized and targets a specific demographic with significant equity.

Here's the quick math on the fintech channel capacity and the company's recent financial footing, which supports these channel investments:

The digital marketing for the mortgage side is leveraging AI; the AI sales agent spinout, Magic Blocks, showed 6x better conversion rates than humans at 90% lower operational costs, which directly impacts the efficiency of acquiring mortgage customers through digital channels.

The overall financial health, reflected in the Q2 2025 net loss from continuing operations of $4.0 million, shows the cost of integrating these expanding channels and operations, especially the surge in operating expenses to $5.64 million in Q2 2025.

Finance: draft 13-week cash view by Friday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Customer Segments

You're looking at the customer base for Eastside Distilling, Inc. as of late 2025, and honestly, the picture is split between its legacy craft spirits heritage and its massive, newly integrated FinTech operations. The numbers from the nine months year-to-date through Q3 2025 tell a clear story about where the revenue focus is now.

The primary customer base, driving the bulk of the current financial activity, is centered around the mortgage and lending platform, which now dwarfs the spirits segment in terms of top-line contribution. This segment directly addresses homeowners and property investors.

• Homeowners and property investors needing conventional and non-qualified mortgages.
• This group accounted for over 78% of the total net revenues of $5.4 million for the nine months year-to-date ending Q3 2025.
• The platform is designed as an end-to-end, all-digital, AI-enhanced system, which naturally appeals to a digitally native demographic.

The prompt mentions Millennials and Gen Z seeking a modern, digital mortgage experience; while we don't have a direct demographic breakdown for the mortgage segment, the platform's 'all-digital, AI-enhanced' nature suggests this is a key target within the broader homeowner/investor group. The growth in this area is significant, with total net revenue growth rates reported at 37% from Q2 to Q3 2025, spurred partly by declining interest rates.

The traditional spirits customer segments still exist, but their financial contribution is now secondary, reflected in the segment's operating loss. Here's a quick look at the financial weight of the spirits side versus the mortgage side for the nine-month period ending Q3 2025:

For the craft spirits enthusiasts, the customer value proposition remains centered on quality and artisanal production, a core part of the company's identity since its 2008 founding in Portland, Oregon. These customers are loyal to the specific product lines Eastside Distilling, Inc. maintains:

• Craft spirits enthusiasts seeking high-quality, premium, small-batch products.
• Regional Pacific Northwest consumers with strong local brand loyalty.
• The portfolio includes Azuñia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas.
• The company's Craft Canning + Bottling subsidiary historically served the Northwest craft beer and cider industries, reinforcing regional ties.

To be fair, the spirits segment is currently a drag on overall profitability, showing a year-to-date loss of $718,000 as of Q3 2025, which management is clearly absorbing while prioritizing the FinTech scaling. Finance: draft the cash flow impact of the $718,000 spirits loss against the $13 million financing cash inflow by next Tuesday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Cost Structure

You're looking at the cost structure of Eastside Distilling, Inc. (EAST), which, as of late 2025, is operating under the Beeline Holdings, Inc. banner following a merger, so the latest figures reflect this new combined entity's spending. The cost base is heavily influenced by the integration of the FinTech operations.

The overall operating expenses for the second quarter of 2025 were substantial, surging to approximately $5.6 million. This figure reflects the higher administrative and operational costs associated with integrating the new FinTech business lines. For context on where that money went in Q2 2025, here's a quick breakdown of some key expense categories:

The technology and payroll costs are now a major component, directly tied to the AI development and the new mortgage/SaaS platform. The $2.2 million in salaries and benefits for Q2 2025 is a clear indicator of the investment in the human capital supporting these new ventures.

Sales, General, and Administrative (SG&A) expenses are now spread across two distinct business areas: the legacy spirits/canning operations and the emerging FinTech services. The professional fees, totaling $1.2 million in Q2 2025, are noted as being primarily non-recurring costs related to the ongoing integration efforts, which you'd expect to decrease in subsequent quarters if the restructuring holds. Marketing spend was $0.8 million in the same period.

Regarding the profitability metrics, the LTM (Last Twelve Months) EBITDA as of February 2025 is a critical figure for assessing cash burn, though the precise negative EBITDA of -$3.82 million you mentioned isn't directly verifiable in the latest accessible reports. What is clear from Q2 2025 is that the adjusted EBITDA loss for that quarter alone was $2.8 million, an improvement from the $3.5 million loss in Q1 2025. This suggests a focus on expense control, even as the overall operating loss remains significant.

For the spirits portfolio, the cost of raw materials and production is now being managed alongside the FinTech ramp-up. While specific 2025 raw material cost line items aren't detailed separately from the overall operating expenses, the prior focus on cost savings in the spirits segment-which previously cited raw material savings for margin improvement-is likely continuing, though it's now overshadowed by the new business's spending profile. You should watch for the realization of the expected monthly recurring expense reduction of $0.3 million, which is set to be fully realized by September 2025, as that will directly impact future SG&A and operating expenses.

• Operating expenses for Q2 2025 totaled $5.6 million.
• Salaries and benefits accounted for $2.2 million of Q2 2025 OpEx.
• Professional fees in Q2 2025 were $1.2 million.
• The company aims to be debt-free by November 2025.
• Cash on hand at the end of Q2 2025 was $6.3 million.

Finance: draft 13-week cash view by Friday.

Eastside Distilling, Inc. (EAST) - Canvas Business Model: Revenue Streams

You're looking at how Eastside Distilling, Inc. now Beeline Holdings, Inc. is actually bringing in the money after that big merger. It's definitely not just about the whiskey anymore; the fintech side is a major component now.

The revenue streams are clearly split between the legacy beverage business and the newer digital mortgage origination segment from the Beeline subsidiary. You see sales revenue coming from the portfolio of craft spirits brands, which includes names like Azuñia Tequila, HueHue Coffee Rum, and Burnside Whiskey. Still, the growth story they are pushing now centers on the mortgage side.

The Beeline subsidiary is the source for mortgage origination fees and interest income. A key detail here is the focus on revenue from non-qualified mortgages, which they suggest is not tied to interest rates in the same way as conforming loans, giving them a competitive edge in that specific niche. This dual structure is what defines their current top line.

Here's a quick look at the most recent top-line numbers we have as of late 2025:

Honestly, looking at the historical context helps frame the current situation. The company reported a Q2 2025 consolidated revenue of $1.71 million, which was a decrease from $2.95 million in Q2 2024. That TTM revenue as of Nov 2025 sits at $8.12 Million USD. You have to remember they divested the Craft Canning + Printing asset, so that stream is gone, simplifying the focus to spirits and mortgages.

The structure of the mortgage revenue stream is interesting. Beeline originated $144.1 million of mortgages in 2023 and $132.1 million the year before that. The expectation is that fees and interest from these originations, particularly the non-QM loans, will drive future revenue growth, leveraging their AI platform for lower-cost conversions.

The core revenue drivers for Eastside Distilling, Inc. are:

• Sales revenue from the portfolio of craft spirits brands.
• Mortgage origination fees and interest income from the Beeline subsidiary.
• Revenue derived from non-qualified mortgages.

Finance: draft 13-week cash view by Friday.