Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 132

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 132
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 to Innovate New Products. We plan to continue to employ a synergistic process of                   
 rapid development and testing of new products through DtC sales, sampling in our company-owned     
 distilleries and tasting rooms and, in collaboration with the TBN, selling products to consumers   
 in our Heritage-branded TBN distilleries. Once we obtain positive feedback on a new product,       
 we can then launch it for sale directly to consumers via the internet to generate revenue          
 and collect more data from consumers across the country. With new data in hand, we can make        
 decisions with our wholesale partners on which products should be taken to the wholesale           
 market. This direct-to-consumer launch model is a strategy we have utilized since our inception.   
 It has been an important part of our ability to launch, test, re-formulate and re-launch           
 products that have subsequently proven to be appealing to consumers.                               |
| ● | Continue                                                                                           
 to Innovate Marketing Through the Adoption of Artificial Intelligence (“AI”).                      
 We plan to continue testing new AI technology, methods and tools focused on the creation           
 of content, designs, themes and audience identification to maximize the efficiency of our          
 marketing efforts.                                                                                 |

Overview

We are a craft distillery producing, marketing and selling a diverse line of award-winning craft spirits, including whiskeys, vodkas, gins, rums, and “ready-to-drink” canned cocktails. We recognize that taste and innovation are key criteria for consumer choices in spirits and innovate new products for trial in our company-owned distilleries and tasting rooms. We have developed differentiated products that are responsive to consumer desires for rewarding and novel taste experiences.

We compete in the craft spirits segment, which is the most rapidly-growing segment of the overall $288 billion spirits market. According to the American Craft Spirits Association, a craft distillery is defined generally as a distillery that produces fewer than 750,000 gallons annually and holds an ownership interest of 51% or more of a distilled spirits plant that is licensed by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury. According to the Craft Spirits Global Market Report 2023 of Grand View Research, the craft spirits segment had revenues of in excess of $21.4 billion in 2023 and is estimated to grow at a compound annual growth rate (“CAGR”) of 29.4% between 2024 and 2030. We believe we are well positioned to grow in excess of the growth rate of the market