Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 208

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 208
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 analytics, digital techniques and efficiency metrics, across a cross section of social media, lifestyle and brand influencer activities. Working with one of our strategic advisors, we have developed an area of focus on DtC sales channels. While still in its early development and testing phases, the concept is to develop and streamline ways to get our products directly in front of consumers for trial, sampling and purchasing in our branded tasting rooms, partner TBN tasting rooms, TBN -specificentertainment districts with pop -upshops, trial, sampling, and bottle sales, and future planned co -locatedcollaborative tasting rooms in partnership with other premium craft producers across the United States. The platform is built upon one -to-onemarketing efforts through digital, social email and text to drive consumer trial and adoption of products and brands. We are also experimenting with artificial intelligence (“AI”) to create dynamic content to better identify and connect directly with consumers in key target demographic for each product and brand. The sales resulting from such efforts tends to be higher margin than the traditional wholesale route to market, which is the norm in the spirits industry right now. While all the other craft brands fight for shelf space in an increasingly crowded marketplace bottle necked by more and more distributor consolidation, we are developing a route to go straight to the consumer through multiple paths in a one -stopretail way that allows us to control the dialog and the brand position and to collect the consumer data. This effort has the combined positive attributes of allowing us to generate sales at high margins, capture consumer data and contact information for future sales targeting, and to build brand and product recognition to better support the wholesale launches of the best performing products and brands in the general market. Labelling and Innovative Packaging Initiatives.We recognize the importance of packaging and product labelling and their influences on consumers’ purchasing practices. We conduct surveys and consumer research to validate the taste profile and positioning of our products. As we grow and can access more resources, we expect our ability to refine our products in response to consumer interests will improve. Production On October23, 2025, we announced that we would close our five owned and operated tasting rooms in Washington and Oregon effective December31, 2025, along with transitioning production of our products to third party contract producers beginning in the first quarter of 2026. These actions, along with a significant reduction in 121 headcount and overhead, are expected to result in significant reductions in net expenses with a resulting positive impact to our results of operations. The transition to third -partyproduction and