Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 145

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 145
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| ● | 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 of $11.7 billion. The same report noted that 2023 was the second straight year in which spirits revenues for suppliers surpassed beer supplier revenue, making spirits the largest dollar shareof the alcohol beverage market in the U.S. IWSR anticipates that by 2029, for the first time ever, beer will no longer represent the largest percentage of alcoholic beverage sales by volume. Grandview Research estimated the North American spirits market to be $216.6