Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 125

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 125
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 with Native American tribes, we have recently developed a new sales, manufacturing and distribution channel on tribal lands that we expect will increase and broaden the recognition of our brand as that network expands nationally. 70 Our growth strategy for our spirits business is based on three primary areas. First, we are focused on growing our direct -to-consumer(“DtC”) sales via shipping to legal purchasers to their homes where allowed. We currently use a three -tiercompliant, third -partyplatform to conduct these sales and deliveries in 46 states in which approximately 96.8% of the U.S. population reside. This allows us to develop a relationship directly with the consumer through higher -marginsales while collecting valuable data about our best performing products. We can then use this data to target the consumer based on location, age, key demographics and product types. With the data collected, we can also retarget and resell to them generating more revenue. Our DtC sales also support our second growth area, which entails growing our wholesale volume with our distributors through key national accounts both on -premisesand 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 -throughof those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high -marginsales, growing volume through wholesale distribution is the most efficient way to drive large -scalegrowth 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 -brandedmicro production hubs, Heritage -brandedstores and tasting rooms and the sale of our products and new tribally -brandedproducts. 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 -goingcompliance 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