Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 11

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 11
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 market of consumers and clientele.                                  |

| ● | In our Cask Club® program, consumers join                                                                                                  
 as members and work with our distilling team to develop their own 10-liter barrel batches, which are custom aged, flavored, bottled,       
 proofed, and labeled in our retail locations. Over the last ten years, we have demonstrated that this program creates repeat customer      
 foot traffic in our tasting rooms and encourages members to bring friends and family to the locations to sample products, enjoy cocktails, 
 and purchase products of their own. It also serves as an innovation laboratory that provides us with an opportunity to develop and test    
 new products and concepts with the goal of bringing the strongest performers to the market.                                                |

| ● | In our Spirits Club®, a DtC subscription                                                                                               
 service, we offer members the opportunity to purchase three or four selections of spirits per year, which are automatically shipped to 
 their homes or are available for pick up in our tasting rooms.                                                                         |

| ● | Wholesale. We have distribution agreements with the two                                                                                    
 largest spirits distributors in the U.S., Southern Glazer’s Wine and Spirits (“SGWS”) and Republic National Distributing                   
 Company (“RNDC”), each of which has a dedicated sales force in our core states of Washington, Oregon, and Alaska focused                   
 on our portfolios. The revenues of these two distributors in 2023 collectively represented more than 50% of the market share of the total  
 wine and spirits wholesale market in the U.S. Our existing wholesale footprint includes the seven states in the Pacific Northwest          
 (Washington, Oregon, Alaska, Idaho, Montana, Utah, and Wyoming), Oklahoma, and special-order options in Virginia through the state liquor  
 system. Since the beginning of 2024, we have secured new wholesale distribution in Kansas, Kentucky, and portions of Colorado. We began    
 wholesale distribution in the third quarter of 2024 in these new states. Our wholesale leadership team is actively meeting with additional 
 distributors in other states, including several large beer wholesalers that are starting to distribute spirits as they see the volumes     
 of beer in decline and the growth of spirits emerging in their markets, to expand our footprint for wholesale sales in 2024 and beyond.    |

| ● | Tribal Beverage Network. According to 500nations.com,                                                                                       
 a website focused on Native American tribal casinos and casino gambling, there are currently 245 tribes in the U.S. operating 524           
 gaming operations in 29 states, generating annual revenues of approximately $32 billion.