Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 123

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 123
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illery that produces fewer than 750,000 gallons annually and holds an ownership interest of 51% or more of a distilled spirits plant that is licensed by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury. According to Emergen Research, the global craft spirits market was valued at $27.48billion in 2024 and was forecasted to reach $260.65billion by 2034. Out of the more than 2,600 craft producers in North America, we have been recognized with more awards for our products from the American Distilling Institute, the leading independent spirits association in the U.S., than any other North American craft distiller for a decade, plus numerous other Best of Class, Double Gold and Gold medals from multiple national and international spirits competitions. 71 We sell our products through wholesale distribution and by shipping directly to consumers online where legal. Currently, we sell products primarily in the Pacific Northwest with limited distribution in other states throughout the U.S. In addition, in collaboration with Native American tribes, we have recently developed a new sales, manufacturing and distribution channel on tribal lands that we expect will increase and broaden the recognition of our brand as that network expands nationally. Our growth strategy for our spirits business is based on three primary areas. First, we are focused on growing our direct -to -consumer(“DtC”) sales via shipping to legal purchasers to their homes where allowed. We currently use a three -tiercompliant, third -partyplatform to conduct these sales and deliveries in 46 states in which approximately 96.8% of the U.S. population reside. This allows us to develop a relationship directly with the consumer through higher -marginsales while collecting valuable data about our best performing products. We can then use this data to target the consumer based on location, age, key demographics and product types. With the data collected, we can also retarget and resell to them, thereby generating more revenue. Our DtC sales also support our second growth area, which entails growing our wholesale volume with our distributors through key national accounts both on -premisesand off -premises. By building brand recognition for key products in selected regions or states through DtC sales, we can better support the wholesale launch, marketing and product pull -throughof those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high -marginsales, growing volume through wholesale distribution is the most efficient way to drive large -scalegrowth