Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 139

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 139
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 national network of tribal spirits production and retail     
 operation locations in or around tribal casinos and high-foot-traffic entertainment districts 
 on tribal lands. We believe these operations will benefit from the fact that, as sovereign    
 nations, tribes are exempt from a variety of state and local zoning and construction codes    
 and can collect and keep state and local excise and sales taxes on the products they produce  
 and sell on tribal lands, along with distributing products to their own properties.           |

| ● | Continue                                                                                      
 to Innovate New Products.     We plan to continue to employ                                   
 a synergistic process of rapid development and testing of new products through DtC sales,     
 sampling in our company-owned 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.                                                                                    |

| 92 |

| ● | 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