Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 31

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 31
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 financial results.

We rely on consumers’ demand for our craft spirits. While over the past several years there have been modest increases in consumption of beverage alcohol in most of our product categories and geographic markets, there have been periods in the past in which there were substantial declines in the overall per capita consumption of beverage alcohol products in the U.S. and other markets in which we participate or plans to participate. Consumer preferences may shift due to a variety of factors, including changes in demographic or social trends, changes in discretionary income, public health policies and perceptions and changes in leisure, dining and beverage consumption patterns. Our success will require us to anticipate and respond effectively to shifts in consumer behavior and drinking tastes. If consumer preferences were to move away from our Heritage Distillingor other brands, our results of operations would be materially and adversely affected.

A limited or general decline in consumer demand could occur in the future due to a variety of factors, including:

| ● | a                                                                                                 
 general decline in economic or geopolitical conditions;                                           |
| ● | a                                                                                                 
 general decline in the consumption of alcoholic beverage products in on-premises establishments,  
 such as those that may result from smoking bans and stricter laws relating to driving while       
 under the influence of alcohol and changes in public health policies, including those implemented 
 to address the COVID-19 pandemic;                                                                 |

| 17 |

| ● | a                                                                                              
 generational or demographic shift in consumer preferences away from whiskies and other spirits 
 to other alcoholic beverages or non-alcoholic beverages;                                       |
| ● | increased                                                                                      
 activity of anti-alcohol groups;                                                               |
| ● | increased                                                                                      
 regulation placing restrictions on the purchase or consumption of alcoholic beverage products; |
| ● | concern                                                                                        
 about the health consequences of consuming alcoholic beverage products; and                    |
| ● | increased                                                                                      
 federal, state, provincial, and foreign excise, or other taxes on beverage alcohol products    
 and increased restrictions on beverage alcohol advertising and marketing.                      |

Demand for premium spirits brands, like ours, may be particularly susceptible to changing economic conditions and consumer tastes, preferences and spending habits, particularly among younger demographic groups, which may reduce our sales of these products and adversely affect our profitability. For instance, a reduction in the overall number of consumers over the legal drinking age, but who are relatively new to the market, may choose to consume less alcohol, or to stop consuming alcohol altogether. An unanticipated decline or change in consumer demand or preference could also materially impact on our ability to forecast future production requirements, which