Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 12

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 12
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 In most counties across the U.S. in                
 which there are tribal casinos, the casinos are the largest accounts for spirits, beer, and wine in such counties. We believe a significant 
 percentage of the millions of visitors collectively visiting those tribal-owned operations will patronize Heritage-branded TBN distillery   
 tasting rooms to sample and consume cocktails, sign up for one or more of our subscription-based member programs, and purchase bottles      
 of spirits to go. Under this model, the tribes exercise their tribal sovereignty and enter a new business with significant revenue and      
 margin potential. The TBN model also includes us working with each of the participating tribes to develop their own unique brands to        
 feature in their properties and regions.                                                                                                    |

We believe the TBN model is unique in the adult beverage industry. To set up this network, we have leveraged the role of our Chief Executive Officer in overturning in 2018 a 184-year-old federal law prohibiting Native Americans from distilling spirits on tribal lands. We designed the TBN to assist Native American tribes in developing a new business, complementary to their existing casino and entertainment businesses, to attract new visitors and consumers. By working with us, tribes get access to our expertise and our full portfolio of brands. We believe this is a significant new business opportunity for tribes with the potential for strong revenue and profit growth, allowing tribes to capture the full margin benefit as manufacturers, and the ability to collect and keep state spirits taxes for products made and sold on their sovereign land. Following the announcement of our partnership with the Tonto Apache Tribe in Arizona in 2023, in May 2024, we announced a landmark agreement with the Coquille Tribe of Oregon after helping them navigate negotiations with the Oregon Liquor Control Board to allow for the first tribal distillery in Oregon. This is the first of such agreements between a Native American tribe and one of the 18 liquor control states in the United States.

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| ● | Co-Located Retail Spaces. Our marketing plan includes                                                                                       
 partnering with some of the most highly-regarded premium craft spirits producers in key regions across the U.S. to co-brand and             
 cross operate retail tasting rooms. Qualified partners must have the key attributes of high-quality products, a consumer-focused tasting    
 room opportunity to drive trial and sales, and the ability to send and receive spirits in bulk for localized bottling. As we and these      
 other producers cross-brand our collective tasting rooms to consumers who do not otherwise have access to them in their general markets,    
 we believe