Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 163

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 163
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 distilleries and tasting rooms and, in collaboration with the TBN, selling products to consumers in our Heritage-branded        
 TBN distilleries. Once we obtain positive feedback on a new product, we can then launch it for sale directly to consumers via the internet    
 to generate revenue and collect more data from consumers across the country. With new data in hand, we can make decisions with our wholesale  
 partners on which products should be taken to the wholesale market. This direct-to-consumer launch model is a strategy we have utilized       
 since our inception. It has been an important part of our ability to launch, test, re-formulate and re-launch products that have subsequently 
 proven to be appealing to consumers.                                                                                                          |

| ● | Continue to Innovate Marketing Through the Adoption                                                                                   
 of Artificial Intelligence (“AI”). We plan to continue testing new AI technology, methods                                             
 and tools focused on the creation of content, designs, themes and audience identification to maximize the efficiency of our marketing 
 efforts.                                                                                                                              |

Market

We believe we are well positioned to grow as the
overall spirits market continues its growth at the expense of beer and wine. Recent studies demonstrate that the spirits market is growing
annually in terms of total alcohol volume and as a percentage share of alcohol dollars. According to drink market analysis firm IWSR,
a leading source of data and intelligence in the alcoholic beverage market, spirits have gained market share among other alcoholic beverages
continuously since 1998 (23 years), as consumers trend away from beer and wine into spirits. From 2000 to 2023, the market share
of spirits by value increased nearly 13 percentage points, from 29% to 42%, according to a 2024 Distilled Spirits Council of the United
States (DISCUS) report, an increase in total dollar value of $11.7 billion. The same report noted that 2023 was the second straight year
in which spirits revenues for suppliers surpassed beer supplier revenue, making spirits the largest dollar share of the
alcohol beverage market in the U.S. IWSR anticipates that by 2029, for the first time ever, beer will no longer represent the largest
percentage of alcoholic beverage sales by volume. Grandview Research estimated the North American spirits market to be $216.6
billion in 2023, growing at a CAGR of 6.3% from 2024 to $312.5 billion by 2030. Because spirits are worth more per ounce