Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 169

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 169
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 & More across
Washington, Oregon and Alaska.

In keeping with consumer trends, we also developed
a line of super premium spirits-based RTDs in 12-ounce cans for on-the-go consumers. The RTD segment is among the fastest-growing segments
of the alcoholic beverage market in the U.S., and our line of award-winning RTDs began to gain wholesale momentum in the Pacific Northwest
in late 2022. These products come in four flavors: Peachy Bourbon, Gin Jam Fizzzz, Easy Peasy Lemon Squeezy and Blood Orange Vodkarita. Each recipe features a burst of flavors, low carbonation and a low 6.9% ABV (alcohol by volume). In a recent survey
of 993 customers in our tasting rooms, 70% replied they would purchase our RTD products at a retailer, with the largest group of responders
to the survey in the 26-45 age demographic. All four products have won awards from respected tasting competitions, including Peachy Bourbon, which was named best overall RTD among all RTD products by the Seattle Cocktail Club, a collection of the top bartenders
and industry insiders in the region. In May 2023, all four RTDs ran the table at the International SIP judging with 3 Gold Medals,
a Double Gold Medal, two Consumer Choice Awards and an Innovation Award. In the U.S., RTDs are projected by Grand View Research to reach
$2.4 billion in revenue by 2030 with a 13% CAGR from 2020 to 2030. Consumers are increasingly favoring RTDs because of their
convenience, consistent flavor profiles and lower alcohol content, which we believe helps to position the products in the growing “better
for you” segment of the adult beverages market.

We also feature a series of gins, rums and limited-edition
products, primarily in our tasting rooms as we examine which products perform well enough to try to push into broader distribution.

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Distribution and Sales

We utilize an omni-channel approach for the distribution
of our products, which includes sales through our-branded distilleries and tasting rooms; wholesale through distributors to retailers
and on-premises accounts, such as bars and restaurants; DtC online sales; sales through state control systems; and sales through the TBN.

This approach includes five company-owned and Heritage-branded
tasting rooms, two of which are attached to our distill