Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 167

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 167
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 on valuations multiples in the spirits industry. For example, Thinking Tree Spirit’s
Butterfly Pea Lavender Vodka was named Vodka of the Year for 2023 by Wine and Spirits Magazine, making it one of the most premium
products in the industry. We believe the addition of that product to our existing portfolio will strengthen the perception of our product
offerings in the marketplace and help us grow our wholesale and retail revenues.

In 2017, we created and launched Flavored Bourbon,
a bourbon flavored with brown sugar and cinnamon. It quickly grew into one of the fastest-growing flavored whiskeys in the Pacific Northwest
and was named “World’s Best Flavored Whiskey” in 2018 and 2019 by Whiskey Magazine in London. In 2020, we sold
a majority interest in the brand to an industry group and retained a significant minority position. We have an economic right to participate
in any ultimate sales proceeds of any sale or other disposition of substantially all of the purchaser’s business or assets (for
example, if the brand is sold, or if distributions or revenue shares from brand profits are generated). Following on the success of the
Flavored Bourbonbrand, and after examining the market, we created Cocoa Bomb chocolate whiskey, and tested it in limited
distribution in the Pacific Northwest in 2022 with plans for wholesale expansion in 2023 and beyond. Cocoa Bomb was recently recognized
as the best flavored whiskey in the West by Sunset Magazine.

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While we were producing the whiskey products described
above, we were aging additional whiskey with the goal of creating bottles of single-barrel selections with specific flavor profiles to
appeal to the growing “bourbon hunter” demographic — a subset of whiskey drinkers who seek out small batch
and unique high-quality whiskeys. Unlike many new brands entering the premium craft whiskey and bourbon category that rely on sourced
liquid for all or a portion of their blends, we produce and age all of our products in-house for our Stiefel’s Select line.
This allows us to leverage our experience and our innovative distillation methods while taking advantage of the Pacific Northwest’s
unique climate to produce aged whiskeys that are authentic to our name and of the highest quality. Depending on the particular product,
ingredients are blends of corn, rye, malted barley, unmalted barley, peated malt and wheat. Once aged in heavy-charred American Oak barrels,
the finished product is bottled at 94