Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 13

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 13
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 we will collectively be driving more consumer trials and increased sales as well as building co-marketed brands in other regions 
 of the country without the expense of new buildings, leased spaces, production capacity, employees or other capital expenditures.           |

| ● | Capital-Efficient and Scalable Operational Structure.                                                                                  
 We have strategically structured, and plan to continue to structure, our organization and operations to minimize and most effectively  
 manage our capital investment requirements while maintaining flexibility to rapidly scale our production capabilities to meet consumer 
 demands. We do this by utilizing our internal distilling and bottling capabilities while leveraging a network of reputable third-party 
 providers with industry expertise and experience performing various functions falling outside of our internal core competencies.       |

For example, we are able to contract with third-party canning and packaging companies to pack our RTDs rather than investing in the required equipment and supporting infrastructure and personnel for in-house canning operations. We can also source specific spirits or buy bulk spirits in the market or have them produced at tribal and non-tribal facilities under contract. We believe the planned expansion of the TBN will also enhance our ability to scale our production, distribution, and selling operations with limited capital expenditures across many regions of the U.S. while allowing us to retain “local” brand status in those areas. We plan to continually review the structure of our organization and operations, and to make any changes we deem necessary, to best accommodate our growth and changing market conditions.

| ● | Food and Beverage Industry Experience. Our executive                                                                                        
 team and board of directors operate with a focus on human capital management and hold a firm belief that quality people with proven track   
 records can produce quality results. Our leadership team and board of directors are made up of multi-disciplinary executives with proven    
 track records of successfully launching, growing, and operating companies of all sizes and across many industries, including in the spirits 
 industry.                                                                                                                                   |

Strategies for Growth Our growth plan focuses on gaining brand and product visibility, thereby increasing sales and market share, by executing the following strategies:

| ● | Grow Brand Recognition for Our Principal Product Lines                                                                                   
 Through High-Margin DtC Sales. By taking advantage of the internet and targeted digital marketing, we can place our brands in            
 front of consumers and make direct sales to them. These sales generate high-margin revenue for us while building our customer database   
 and product data. We plan to further leverage direct-to-consumer sales through company-owned tasting rooms, through the TBN, and through 
 co-located tasting rooms.