Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 198

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 198
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 to our position in the craft spirits segment of the overall spirits market, we are situated in the fastest -growingsegment of the spirits market, which itself is the highest growth segment of the adult beverage market. In addition, according to the Distilled Spirits Council of The United States, consumers are increasingly shifting towards higher premium products in the spirits market, with spirits brands in the U.S. enjoying a multi -decade-longtrend towards high -endand super premium products. Goldman Sachs Equity Research predicts super premium spirits products will soon represent almost 38% of the overall spirits market, and spirits have also demonstrated to be recession resistant in the U.S. over time, with a correlation coefficient of 0.002 since 1962 by volume. Our Brands and Products When we first opened in 2012, we produced only a limited line of traditional spirits products. However, in response to customer demand and consumer testing that we performed through our tasting rooms, we moved into the flavored segment in 2014 and launched 22 different flavored vodkas. As sales increased, we offered eight products through local distribution and over time have winnowed those products down to a core six flavors at wholesale. 116 In 2014, we created a line of spirits products under the BATCH No. 12trade name that we still sell today and is primarily featured in the well at on -premiseaccounts. It provides a baseline of volume for us as we execute on our plan to transition to higher -marginsspirits. In 2015, we launched 1 st Special Forces Whiskey, a premium brand positioned towards active -dutymilitary, retired military, military families, and others supportive of the armed forces in the Pacific Northwest, where the 1 stSpecial Forces Group is stationed at Joint Base Lewis McChord (“JBLM”). We have produced seven blends of Special Forces Whiskeyannually since 2015, and a portion of the sales proceeds of this brand are donated by us to special forces charities annually. These donations currently support the 1 stSpecial Forces Group at JBLM, and we have raised more than $150,000 for charities at JBLM to support military personnel and their families. We are expanding this concept to the multiple Special Forces groups across the country with a greater emphasis on distribution in more states and direct to consumer shipping through our e -commerceplatform. Our new Salute Seriesline of whiskeys consists of various bottlings branded for U.S. military branches and first responders