Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 10

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 10
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 have distribution agreements with the two                                                                                    
 largest spirits distributors in the U.S., Southern Glazer’s Wine and Spirits (“SGWS”) and Republic National Distributing                   
 Company (“RNDC”), each of which has a dedicated sales force in our core states of Washington, Oregon, and Alaska focused                   
 on our portfolios. The revenues of these two distributors in 2023 collectively represented more than 50% of the market share of the total  
 wine and spirits wholesale market in the U.S. Our existing wholesale footprint includes the seven states in the Pacific Northwest          
 (Washington, Oregon, Alaska, Idaho, Montana, Utah, and Wyoming), Oklahoma, and special-order options in Virginia through the state liquor  
 system. Since the beginning of 2024, we have secured new wholesale distribution in Kansas, Kentucky, and portions of Colorado. We began    
 wholesale distribution in the third quarter of 2024 in these new states. Our wholesale leadership team is actively meeting with additional 
 distributors in other states, including several large beer wholesalers that are starting to distribute spirits as they see the volumes     
 of beer in decline and the growth of spirits emerging in their markets, to expand our footprint for wholesale sales in 2024 and beyond.    |

| ● | Tribal Beverage Network. According to 500nations.com,                                                                                       
 a website focused on Native American tribal casinos and casino gambling, there are currently 245 tribes in the U.S. operating 524           
 gaming operations in 29 states, generating annual revenues of approximately $32 billion. 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 T