Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 10

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 10
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 more than 300 awards                 
 we have received over the past ten years. We were the original creator of Flavored Bourbon, a flavored bourbon that won “World’s          
 Best Flavored Whiskey” by Whiskey Magazine in London two years in a row. Through our recent acquisition of Thinking Tree                  
 Spirits Inc. (“Thinking Tree Spirits”), we added several of its super premium spirits to our portfolio of flavored craft                  
 spirits, including its Butterfly Pea Lavender Vodka, which was named “Vodka of the Year” for 2023 by Wine and Spirits                     
 Magazine.                                                                                                                                 |

| ● | Differentiated Distribution Strategy. We believe                                                                                    
 we have a strong distribution approach that increases the availability of our brands and product offerings to our target consumers. |

| ● | Direct to Consumer (“DtC”). |

| ● | We have five Heritage-branded tasting rooms and one Thinking                                                                          
 Tree Spirits tasting room in the Pacific Northwest that allow us to sell directly to consumers and that we use to sample new products 
 and ideas.                                                                                                                            |

3

| ● | We also sell through e-commerce and engage in other subscription-based                                                                        
 program activities to target customers to generate recurring revenue and customer loyalty. In March 2023, we contracted with a third-party    
 e-commerce platform to sell online to consumers in 34 states via its three-tier compliant system. In March 2024, we ended that relationship   
 and began migrating to LiquidRails, a third-party, three-tier compliant platform that relies on delivery to consumers via licensed retailers. 
 This platform expands our DtC outreach to 45 states and the District of Columbia and eliminates our shipping costs to the consumer, which     
 will help us to both increase our net margin and expand our sales opportunities. Prior to March 2023, we shipped directly to consumers        
 in only nine states. We also recently added our offerings from our Salute Series line onto the Seelbach’s DtC platform,                       
 a third-party, three-tier compliant DtC platform that is well known to whiskey enthusiasts around the country, which expanded our reach       
 to a new whiskey-focused DtC audience. This DtC sales method allows us to collect high-margin sales and consumer data to drive future         
 sales and to support the growth of our traditional spirits through the three-tier wholesale system. The future ability to accept bitcoin      
 as a form of payment, upon the future adoption of a final Bitcoin Treasury Policy, for select online sales further differentiates us          
 in the space among our competitors and opens up our products to a broader