Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 39

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 39
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 distribution networks and public relations resources than we have. As a result
of this intense competition, combined with our growth goals, we have experienced and may continue to face upward pressure on our selling,
marketing and promotional efforts and expenses. There can be no assurance that in the future we will be able to successfully compete
with our competitors or that we will not face greater competition from other distilleries, producers and beverage manufacturers.

If we are unable to successfully compete with existing
or new market participants, or if we do not effectively respond to competitive pressures, we could experience reductions in market share
and margins that could have a material and adverse effect on our business, results of operations and financial results.

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We compete in an industry that is brand-conscious, so brand name recognition and acceptance of our products are critical to our success.

Our business is substantially dependent upon awareness
and market acceptance of our products and brands by our targeted consumers. In addition, our business depends on the acceptance by our
independent distributors of our brands as beverage brands that have the potential to provide incremental sales growth rather than reduce
distributors’ existing beverage sales. Although we believe we have been successful in establishing our brands as recognizable brands
in the regional Pacific Northwest premium craft spirits industry, we may be too early in the product life cycle of these brands to determine
whether our products and brands will achieve and maintain satisfactory levels of acceptance by independent distributors, retail customers
and consumers. We believe the success of our brands will also be substantially dependent upon acceptance of our product name brands. Accordingly,
any failure of our brands to maintain or increase acceptance or market penetration would likely have a material adverse effect on our
revenues and financial results.

A reduction in consumer demand for whiskey, vodka, gin, RTDs and other spirits, which may result from a variety of factors, including demographic shifts and decreases in discretionary spending, could materially and adversely affect our business, results of operations and financial results.

We rely on consumers’ demand for our craft
spirits. While over the past several years there have been modest increases in consumption of beverage alcohol in most of our product
categories and geographic markets, there have been periods in the past in which there were substantial declines in the overall per capita
consumption of beverage alcohol products in the U.S. and other markets in which we participate or plans to participate. Consumer
preferences may shift due to a variety of factors, including changes in demographic or social trends, changes in discretionary income,
public health