Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 148

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 148
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 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.                                                               |

97 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 opportunity for tribes with the potential for strong revenue and profit growth, allowing tribes to capture the full margin benefit as manufacturers and the ability to collect and keep state spirits taxes for products made and sold on their sovereign land. Following the announcement of our partnership with the Tonto Apache Tribe in Arizona in 2023, in May 2024, we announced a landmark agreement with the Coquille Tribe of Oregon after helping the Tribe navigate negotiations with the Oregon Liquor Control Board to allow for the first Tribal distillery in Oregon. This is the first of such agreements between a Native American tribe and one of the 18 liquor control states in the United States.

| ● | Co-Located Retail Spaces. Our                                                                                                                 
 marketing plan includes partnering with some of the most highly-regarded premium craft spirits producers in key regions across the U.S. to    
 co-brand and cross operate retail tasting rooms. Qualified partners must have the key attributes of high