So what we’ve done there is we have lowered the cost there significantly. Liquid costs, the bottle, packaging, whole manufacturing process has been rebuilt. We’ve sized that to improve the margins. And so we’re going to put more volume through our facility in Milwaukee, Oregon. And we’re going to see those margins improve at PPV. And that’s going to be the growth driver. So what you’ve seen in the summer is we got aggressive with our main competitors in Portland, and we did okay. We weren’t positive in units. We were mid-single-digit down. But based on what we’re seeing in the economy, I’m happy with that. Now the next thing, as you mentioned, is Burnside. Burnside’s a disappointment. We’re in a position to really grow Burnside. In fact, we have some outstanding Burnside products that we’re working on, one of which is a 17-year bourbon for Buckman.
And we think that it’s outstanding. And we believe that we have an opportunity to roll out some unique products in the Burnside line and get more interest in that brand and get some growth. But that’s the challenge. Burnside and Azuñia are two brands that need investment. And this company has been about restructuring and reducing costs and underinvestment there. It has been one of the things that I think slowed the turnaround in those two brands. But here, this is where the market makes a decision. In a small-cap market, the cost of capital, where our stock is, is telling us that they don’t have the capital to invest there. It’s extremely expensive to borrow funds at this point. We just did the debt for equity swap. You saw that. So we’re having to pick our areas very carefully where we invest, and we have a limited amount of capital to use.
And it’s to retain the public company status and grow digital can printing because that’s immediate. That’s the investment made and we have immediate impact because we’re seeing customers who are transitioning to this package. So Burnside is a work in progress and the same thing with Azuñia. When we have a little bit more capital, we have a plan in place and we think we’re going to be able to execute it, then in the near term, we’re going to do some unique things in Burnside, we think, that are going to drive awareness and volume in Portland. But right now, PPV is leading the way.
Matthew Campbell: That’s helpful, Geoff. I mean I completely appreciate the deck of cards you’ve been handed here. I think it’s smart, all the adjustments you’ve made to the business, and it’s nice to see some improvement in the cost structure so we can continue to get this business turned around. So I applaud the work, and I realize a lot of the work is hard for us to see today, but it’s work that will pay dividends in the future. So, thank you.
Geoffrey Gwin: Thanks, Matt. Just to be clear, you’re seeing the progress now. Our gross margins improved, EBITDA came down significantly. We’re within striking distance in spirits to break even and start to turn the corner. I thought we would be there first in Craft. But based on this, we might be there first in spirits. So let’s see. Fourth quarter is not going to be an easy quarter because I think you’re going to see it across the board, there’s weakness everywhere. Notwithstanding the reactions to our market today, there is clearly supply chain challenges. People looking to underinvest in this environment. Consumers have definitely got retailers scared. There’s a destocking going down. Diageo had a big blob on that. That happens in retail.
People take out inventory in the system and have a big impact down the supply chain. So we’re going to feel that. But we’re in a much better position going into next year with where we need to be for spirits. And we’re in a growth category in digital printing, so I’m encouraged.
Matthew Campbell: Great. Thanks for the color.
Operator: There are no questions at this time. This concludes our question-and-answer session. I would like to turn the conference back over to Geoffrey Gwin for closing remarks.
Geoffrey Gwin: Great. I appreciate it, and thank you all for listening. A couple of important things to also note is that our annual meeting this year is going to be on December 28 virtually. We pushed it to the end of the year because, as you know, we have been working on this debt for equity exchange to lower the debt on the balance sheet and increase our equity, which we accomplished in the third quarter. Along with that, we are going to need shareholder approval for the increase in share count. And so we’re going to have our annual meeting on the 28, and I’ll be reaching out directly to shareholders individually and encourage them to vote for the increase in shares, which is critical for us in continuing to operate as a public company. So I appreciate again you guys participating in the call. And if you have any questions, feel free to call me or Tiffany. Thanks.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
