Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 198

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 198
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 the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury. According to Emergen Research, the global craft spirits market was valued at $27.48billion in 2024, was forecasted to reach $260.65billion by 2034 and was estimated to grow at a compound annual growth rate (“CAGR”) of 28.4% by 2034. We believe we are well positioned to grow in excess of the growth rate of the market by increasing our marketing efforts, increasing the size of our sales teams and broadening our wholesale distribution. Out of the more than 2,600 craft producers in North America, we have been recognized with more awards for our products from the American Distilling Institute, the leading independent spirits association in the U.S., than any other North American craft distiller for a decade, plus numerous other Best of Class, Double Gold and Gold medals from multiple national and international spirits competitions. We are one of the largest craft spirits producers on the West Coast based on revenues and are developing a national reach in the U.S. through traditional sales channels (wholesale, on -premisesand e -commerce) and our unique and recently -developedTribal Beverage Network (“TBN”) sales channel. Based upon our track record of winning industry awards in an increasingly competitive environment, we believe we are one of the leading craft spirits producers in the United States. We sell our products through wholesale distribution and by shipping directly to consumers online where legal. Currently, we sell products primarily in the Pacific Northwest with limited distribution in other states throughout the U.S. In addition, in collaboration with Native American tribes, we have recently developed a new sales, manufacturing and distribution channel on tribal lands that we expect will increase and broaden the recognition of our brand as that network expands nationally. The growth strategy of our spirits segment is based on three primary areas. First, we are focused on growing our direct -to-consumer(“DtC”) sales by shipping to legal purchasers to their homes where allowed. We currently use a three -tiercompliant, third -partyplatform to conduct these sales and deliveries in 46 states in which approximately 96.8% of the U.S. population reside. This allows us to develop a relationship directly with the consumer through higher -marginsales while collecting valuable data about our best performing products. We can then use this data to target the consumer based on location, age, key demographics and product types. With the data collected, we can