Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 139

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 139
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 Spirits Club®, a DtC subscription service, we offer members the opportunity           
 to purchase three or four selections of spirits per year, which are automatically shipped 
 to their homes or are available for pick up in our tasting rooms.                         |

| 90 |

| ● | Wholesale.     We                                                                              
 have distribution agreements with the two largest spirits distributors in the U.S., Southern   
 Glazer’s Wine and Spirits (“SGWS”) and Republic National Distributing Company                  
 (“RNDC”), each of which has a dedicated sales force in our core states of Washington,          
 Oregon and Alaska focused on our portfolios. The revenues of these two distributors in 2024    
 collectively represented more than 50% of the market share of the total wine and spirits       
 wholesale market in the U.S. Our existing wholesale footprint includes the seven states in     
 the Pacific Northwest (Washington, Oregon, Alaska, Idaho, Montana, Utah and Wyoming), Oklahoma 
 and special-order options in Virginia through the state liquor system. Since the beginning     
 of 2024, we have secured new wholesale distribution in Kansas, Kentucky, and portions of       
 Colorado. We began wholesale distribution in those states in the third quarter of 2024. Our    
 wholesale leadership team is actively meeting with additional distributors in other states,    
 including several large beer wholesalers that are starting to distribute spirits as they       
 see the volumes of beer in decline and the growth of spirits emerging in their markets, to     
 expand our footprint for wholesale sales in 2025 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.