Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 139

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 139
---
 state and local zoning and construction codes and can collect and keep           
 state and local excise and sales taxes on the products they produce and sell on tribal lands,      
 along with distributing products to their own properties.                                          |

| 82 |

| ● | Continue                                                                                         
 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.                                                                               |

Market

We believe we are well positioned to grow as the overall spirits market continues its growth at the expense of beer and wine. Recent studies demonstrate that the spirits market is growing annually in terms of total alcohol volume and as a percentage share of alcohol dollars. According to drink market analysis firm IWSR, a leading source of data and intelligence in the alcoholic beverage market, spirits have gained market share among other alcoholic beverages continuously since 1998 (23 years), as consumers trend away from beer and wine into spirits. From 2000 to 2023, the market share of spirits by value increased nearly 13 percentage points, from 29% to 42%, according to a 2024 Distilled Spirits Council of the United States (DISCUS) report, an increase in total dollar value of $11.7 billion. The same report noted that 2023 was the second straight year in which spirits revenues for suppliers surpassed beer supplier revenue, making spirits the largest dollar shareof the alcohol beverage market in the U.S. IWSR anticipates that by 202