Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 147

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 147
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 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 2023 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 2024