Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 7

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 7
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 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-through of those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high-margin sales, growing volume through wholesale distribution is the most efficient way to drive large-scale growth across retail chains. Third, we are focused on expanded growth of our collaboration with Native American tribes through the TBN model we created. In concert with tribal partners, this sales channel includes Heritage-branded micro production hubs, Heritage-branded stores and tasting rooms, and the sale of our products and new tribally-branded products. In the typical TBN collaboration, the tribes will own these businesses and we will receive a royalty on gross sales through licenses we grant to use our brands, products, recipes, programs, IP, new product development, on-going compliance support, and the other support we provide. The TBN is expected to form a network of regional production hubs that will support product trials and sampling and will generate sales of finished, intermediate, and bulk spirits depending on location, equipment, and market. Importantly, because these premium spirits will be produced locally, we believe the TBN will promote the positioning of our brands as local and regional. We expect that, as the brands grow and the TBN footprint expands, there will be an important synergy with increased adoption and growth through our wholesale channels in the regions where the TBN locations are driving trial and awareness. Similarly, as demand for our products grows through our wholesale channels, there should be a positive effect on the demand for our products through the tribal distilleries. Competitive Strengths We attribute our success to the following competitive strengths:

| ● | Premium Aged Whiskeys. We have been testing, distilling,                                                                                             
 and aging premium whiskeys since our inception over ten years ago. Unlike many new brands entering the premium craft whiskey and                     
 bourbon category that rely on sourced liquid for their blends, we chose to produce and age all of our own product in-house for our recently-launched 
 super premium whiskey line under our Stiefel’s Select label. This approach has allowed us to leverage our experience and                             
 our innovative distillation methods while taking advantage of the Pacific Northwest’s unique climate to produce aged whiskeys that                   
 are of the highest quality and authentic to our name. We introduced our first single barrel selections to the public in late 2022 under              
 the Stiefel’s Select brand.