Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 40

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 40
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 policies and perceptions and changes in leisure, dining and beverage consumption patterns. Our success will require us to
anticipate and respond effectively to shifts in consumer behavior and drinking tastes. If consumer preferences were to move away from
our Heritage Distilling or other brands, our results of operations would be materially and adversely affected.

A limited or general decline in consumer demand
could occur in the future due to a variety of factors, including:

| ● | a general decline in economic or geopolitical conditions; |

| ● | a general decline in the consumption of alcoholic beverage                                                                          
 products in on-premises establishments, such as those that may result from smoking bans and stricter laws relating to driving while 
 under the influence of alcohol and changes in public health policies, including those implemented to address the COVID-19 pandemic; |

| ● | a generational or demographic shift in consumer preferences                                   
 away from whiskies and other spirits to other alcoholic beverages or non-alcoholic beverages; |

| ● | increased activity of anti-alcohol groups; |

| ● | increased regulation placing restrictions on the purchase or 
 consumption of alcoholic beverage products;                  |

| ● | concern about the health consequences of consuming alcoholic 
 beverage products; and                                       |

| ● | increased federal, state, provincial, and foreign excise, or                                                       
 other taxes on beverage alcohol products and increased restrictions on beverage alcohol advertising and marketing. |

Demand for premium spirits brands, like ours, may
be particularly susceptible to changing economic conditions and consumer tastes, preferences and spending habits, particularly among younger
demographic groups, which may reduce our sales of these products and adversely affect our profitability. For instance, a reduction in
the overall number of consumers over the legal drinking age, but who are relatively new to the market, may choose to consume less alcohol,
or to stop consuming alcohol altogether. An unanticipated decline or change in consumer demand or preference could also materially impact
on our ability to forecast future production requirements, which could, in turn, impair our ability to effectively adapt to changing consumer
preferences. Any reduction in the demand for our spirits products would materially and adversely affect our business, results of operations
and financial results.

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Adverse public opinion about alcohol could reduce demand for our products.

In the past, anti-alcohol groups have advocated
successfully for more stringent labeling requirements, higher taxes and other regulations designed to discourage alcohol consumption.
More restrictive regulations, negative publicity regarding alcohol consumption and/or changes in consumer perceptions of the relative
healthfulness or safety