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2017 Annual Report
ECHO
DISTILLING COMPANY
Š2017 by ECHO Distilling Company All rights reserved. This report may not be reproduced or transmitted in whole or in part in any form or by any means whether that be electronic or mechanical, including photographing, email, website postings or through any information in storage and retrieval system without prior written consent from ECHO Distilling Company, except as provided by the United States of America copyright law.
“
Here at Echo Distilling Company we believe in good spirits that can be shared and enjoyed by everyone.� Jonah Rand Chief Executive Officer
Contents
06 08 09
Message from the CEO
Summary
Wholesale Accounts
10 11 12
Letter to our Shareholders
Quarterly Highlights
Statistics From 2017
13 14 15
Stock Performance
Information
Board of Directors
Message from
the CEO I am stoked to present to you Echo Distilling Company’s annual report for the 2017 fiscal year — a year well worth reading about. In the past twelve months we have grown immensely as a company, and have far surpassed our financial goals. Our recent expansion in wholesales and our updated website, among others, have contributed to this exceedingly great performance. However, we would never have been able to get to where we are without all of your support. It is my promise to you that we will continue to strive for equality and excellence in all aspects of our company. We take pride in our product and in our people, and we are so pleased to share with you our accomplishments.
Jonah Rand Jonah Rand Founder & Chief Executive Officer
“
We take pride in our product and in our people, and we are so pleased to share with you our accomplishments.” Jonah Rand Founder & CEO
Summary Echo Distilling Company emerged on the market in 2016 due to a lack of gluten free spirit options. Jonah Rand came up with the brilliant idea in 2011, where he began the distilling process for Echo’s five signature spirits. Since then, an official distillery has opened in Brooklyn, New York where thousands of bottles are distilled, packaged and distributed. In just six short years, Echo Distilling Company has reached shelves in over 200 stores in the tristate area. Our five gluten free spirits include our tequila, a reposado that is distilled from 100% blue agave, our four-yearmatured whiskey, our spiced rum, our triple-distilled and deionized vodka, and lastly, our traditional pot distilled gin. Due to the length of time that some of our spirits require in maturation, some spirits are distributed less frequently. We pride ourselves on producing only the highest of quality spirits, which is why the distillation and maturation processes for certain spirits require up to four years.
Wholesale Echo Distilling Company has expanded its distribution, and can now be found in 206 liquor stores in the tristate area.
83 76
206 *Numbers indicate how many stores carry our products in each state
47
Dear
Shareholders, I am overjoyed by all Echo Distilling Company has achieved in fiscal 2017. It is my pleasure to share with you all the following information regarding our financial performance. In fiscal 2017, Echo Distilling Company experienced a 7 percent increase in revenue, resulting in $2,828,538 — the majority of which we attribute to the 123 wholesale accounts we acquired collectively in New Jersey and Connecticut. As a result of this increase, I am proud to emphasize to you that this has set a new record profit. There is no doubt in my mind that Echo Distilling Company will continue to grow in the future given our branding strategy, consistency in product, and excellent customer service. Here at Echo Distilling Company we believe in good spirits that can be shared and enjoyed by everyone. This core value not only impacts how we make our spirits, but also how we interact and engage with our customers and partners. We believe our values can and will drive a mutually beneficial outcome for all involved. I want to thank you for trust us, and for all you do to contribute to our success. We look forward to all the future has to hold.
Jonah Rand Jonah Rand Founder and Chief Executive Officer
Quarterly
Highlights In 2017, Echo Distilling Company has focused on a multitude of objectives all with two things in mind: expansion and advancement. To expand and to advance in our industry, we had to increase our media presence, enhance our website, increase the number of wholesale accounts, and most of all, invest in a larger distillery in order to produce greater quantities of each spirit.
Q1
Q2
Q3 Q4
Gin
40
38
42
44
Rum
32
44
43
38
Vodka
77
78
80
82
Tequila
54
56
68
71
Whiskey
88
91
90
89
*Numbers indicate thousands in US dollars
Statistics 41% 22%
$2,828,538 In total sales
Sales by state with wholesale accounts New York New Jersey Connecticut
47% $200,000 Invested in new distillery 18%
36 Employees
33%
9%
Tequila Whiskey Vodka
24%
16%
Rum
Gin
*Percentage of sales for fiscal 2017 by spirit
Stock Performance The graph below depicts the full return to our shareholders over the course of our two fiscal years compared to NASDAQ Composite and Nike, Inc.
NKE NASDAQ EDC
300 250
200 150
100 50
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Information Headquarters ECHO Distilling Company 299 Sands Street Brooklyn, NY 11205 t: (914) 714 - 3032 e: info@echodistillingco.com w: echodistillingcompany.com
Stock Listing ECHO Distilling Company is listed and traded on the New York Stock Exchange (NYSE) under the abbreviation “EDC�.
Board of
Directors Jonah Rand Founder & Chief Executive Officer Zachary Bocian Executive Vice President Emily Schultz Product Manager Ivy Smith Marketing Director Ashley Koltz Vice President of Marketing Katlynn Roden Vice Chairman Josue Munoz Chief Financial Officer Giannina Brancato Sr. Vice President of Finance Jacqueline Simpson Creative Director Noah Bradley Facilities Manager Robert Lynch Vice President of Operations Joy Franzoso Vice President of Communications