Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 165

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 165
---
. 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. In 2014, we created
a line of spirits products under the BATCH No. 12 tradename that we still sell today and is primarily featured in the well at on-premise
accounts. It provides a baseline of volume for us as we execute on our plan to transition to higher-margins spirits.

In 2015, we launched Special Forces Whiskey,a premium brand positioned towards active-duty military, retired military, military families, and others supportive of the armed forces
in the Pacific Northwest, where the 1 Special Forces Group is stationed at Joint Base Lewis McChord (“JBLM”).
We have produced seven blends of Special Forces Whiskey annually 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 Special 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-commerce platform. Our new Salute Seriesline of whiskeys consists of various bottlings branded for U.S.
military branches and first responders. Since the launch of the Army SOFversion in late October 2023 through September 30, 2024,
we have sold nearly 17,000 bottles directly to consumers in our tasting rooms and online, and to select wholesalers, representing more
than $1,400,000 in revenue. In August 2024, we launched the latest product under our Salute Series called War Dogs and have
sold more than 2,500 bottles online through just our DtC e-commerce channel, with charitable components from each sale going to military
K-9 nonprofit groups. Both the D Day and War Dogs products retail for $95 each, plus taxes and shipping (if shipped DtC),
and their rapid adoption among consumers show that we can continue to release affinity driven labels to attract consumer attention and
purchases and help us drive more revenue with higher margins.

There are approximately