Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 212

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 212
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 for shelf space in an increasingly crowded marketplace bottle necked by more and more distributor consolidation, we are developing a route to go straight to the consumer through multiple paths in a one -stopretail way that allows us to control the dialog and the brand position and to collect the consumer data. This effort has the combined positive attributes of allowing us to generate sales at high margins, capture consumer data and contact information for future sales targeting, and to build brand and product recognition to better support the wholesale launches of the best performing products and brands in the general market. Labelling and Innovative Packaging Initiatives.We recognize the importance of packaging and product labelling and their influences on consumers’ purchasing practices. We conduct surveys and consumer research to validate the taste profile and positioning of our products. As we grow and can access more resources, we expect our ability to refine our products in response to consumer interests will improve. Production On October23, 2025, we announced that we would close our five owned and operated tasting rooms in Washington and Oregon effective December31, 2025, along with transitioning production of our products to third party contract producers beginning in the first quarter of 2026. These actions, along with a significant reduction in 123 headcount and overhead, are expected to result in significant reductions in net expenses with a resulting positive impact to our results of operations. The transition to third -partyproduction and the eventual termination of leases associated with operations is also expected to greatly reduce our unabsorbed overhead expense for every case for product we sell, thereby greatly improving margins. We will continue to sell spirits through distributors and direct to consumers online, and will continue to work with Tribes to license the Heritage Distilling Company brand and our products for production and sale by Tribes in HDC -brandedtasting rooms in or near their casino properties under our TBN model. Competition The alcoholic beverage industry is highly competitive. We believe the principal areas of competition include, among others, flavor, packaging and positioning innovations, pricing, and distribution locations and shelf space, as well as promotional and marketing strategies. Our products compete with a wide range of other beverages, including spirits, beers and wines, and other alcoholic beverages, and increasingly non -alcoholicbeverages designed and marketed to mimic the flavor of alcoholic beverages. Many of these products are produced by a relatively large number of companies, many of which have substantially greater financial, marketing and distribution resources than we do. Within the craft spirits segment of the market, important factors affecting our ability to compete include speed of innovation,