Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 9

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 9
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 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 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 2025 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 law prohibiting Native Americans from distilling spirits on tribal lands. We designed the TBN to assist Native American tribes in developing a new business, complementary to their existing casino and entertainment businesses, to attract new visitors and consumers. By working with us, tribes get access to our expertise and our full portfolio of brands. We believe this is a significant new business