Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 157

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 157
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, we believe
we are one of the leading craft spirits producers in the United States.

We sell our products through wholesale distribution,
directly to consumers through our five owned and operated distilleries and tasting rooms located in Washington and Oregon and by shipping
directly to consumers on-line 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.

Our growth strategy 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-tier compliant, third-party platform 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-margin sales
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 also retarget and resell to these customers, thereby generating
more revenue.

Our DtC sales also support our second growth area,
which entails growing our wholesale volume with our distributors through key national accounts both on-premises and off-premises. By building
brand recognition for key products in selected regions or states through DtC sales, we can better support the wholesale launch, marketing
and product pull-through of those products in partnership with wholesalers in those targeted states. While DtC sales result in singular
high-margin sales, growing volume through wholesale distribution is the most efficient way to drive large-scale growth across retail chains.

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Third, we are focused on expanded growth of our
collaboration with Native American tribes through the TBN model we created. In concert with tribal partners, this sales channel includes
Heritage-branded micro production hubs, Heritage-branded stores and tasting rooms and the sale of our products and new tribally-branded
products. In the typical TBN collaboration, the tribes will own these businesses and we will receive a royalty on gross sales through
licenses we grant to use our brands, products, recipes, programs, IP, new product development, on-going compliance support and the other