Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 177

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 177
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 the consumer through multiple paths in a one-stop retail 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

We have two distilleries and two warehouses comprising
an aggregate of approximately 100,000 square feet dedicated to end-to-end production and storage. Each distillery has and maintains mash,
fermentation, distillation and bottling equipment. We began production of spirits after a thorough market search for high-quality equipment
at each stage of the production process. For example, we selected Italian distilling equipment that provides for gentle treatment of the
spirits and easy calibration to produce clean flavor profiles. Additionally, we source barrels made by Spanish coopers using American
white oak that is cured in Spain for two years. We believe these special barrels and the charring levels in each one allows us to
make consistent, smooth and flavorful spirits.

Sustainability is also an important aspect of our
selection of grains. Where possible, we select family farms using organic and regenerative processes. As an example, according to the
research database Science Direct, regeneratively grown grains typically save approximately 170,000 gallons of water per barrel
produced over the course of the growing cycle.

Based on management’s estimates, we believe
our current production capacity can expand by approximately six times without the need for additional investment. As volumes grow, we
expect that future production capacity will also be provided by distilleries affiliated with member tribes in the TBN.

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Raw Materials and Suppliers

Generally, the principal raw materials used in our
products include corn and other grains (including rye, barley, wheat, barley malt and milo) and flavorings. The principal materials used
in the packaging of our spirits include oak barrels, glass bottles, labels, aluminum cans and cartons. These materials are generally readily
available