Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 125

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 125
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 around the country, which expanded our reach to a new whiskey-focused DtC audience. This           
 sales method allows us to collect high-margin sales and consumer data to drive future sales        
 and to support the growth of our traditional spirits through the three-tier wholesale system.      
 The future ability to accept bitcoin as a form of payment, upon the future adoption of a           
 final Bitcoin Treasury Policy, for select online sales further differentiates us in the space      
 among our competitors and opens up our products to a broader market of consumers and clientele.    |
| ● | In                                                                                                 
 our Cask Club® program, consumers join as members and work with our                                
 distilling team to develop their own 10-liter barrel batches, which are custom aged, flavored,     
 bottled, proofed and labeled in our retail locations. Over the last ten years we have demonstrated 
 that this program creates repeat customer foot traffic in our tasting rooms and encourages         
 members to bring friends and family to the locations to sample products, enjoy cocktails           
 and purchase products of their own. It also serves as an innovation laboratory that provides       
 us with an opportunity to develop and test new products and concepts with the goal of bringing     
 the strongest performers to the market.                                                            |
| ● | In                                                                                                 
 our Spirits Club®, a DtC subscription service, we offer members the opportunity                    
 to purchase three or four selections of spirits per year, which are automatically shipped          
 to their homes or are available for pick up in our tasting rooms.                                  |

| ● | Wholesale.                                                                                         
 We 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 2024 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 those states in the third quarter of 2024.         
 Our wholesale leadership team is actively meeting with additional distributors in other states,    
 including several large beer wholesalers