Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 156

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 156
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on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for
our common stock and our share price may be more volatile.

<div align='center'>94

BUSINESS</div>

Overview

We are a craft distiller producing, marketing and
selling a diverse line of award-winning craft spirits, including whiskeys, vodkas, gins, rums, and “ready-to-drink” canned
cocktails. We recognize that taste and innovation are key criteria for consumer choices in spirits and innovate new products for trial
in our company-owned distilleries and tasting rooms. We have developed differentiated products that are responsive to consumer desires
for rewarding and novel taste experiences.

We compete in the craft spirits segment, which is
the most rapidly-growing segment of the overall $288 billion spirits market. According to the American Craft Spirits Association,
a craft distillery is defined generally as a distillery that produces fewer than 750,000 gallons annually and holds an ownership interest
of 51% or more of a distilled spirits plant that is licensed by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department
of the Treasury. According to the Craft Spirits Global Market Report 2023 of Grand View Research, the craft spirits segment had revenues
of in excess of $21.4 billion in 2023 and is estimated to grow at a compound annual growth rate (“CAGR”) of 29.4% between
2024 and 2030. We believe we are well positioned to grow in excess of the growth rate of the market by increasing our marketing efforts,
increasing the size of our sales teams and broadening our wholesale distribution.

Out of the more than 2,600 craft producers in North
America, we have been recognized with more awards for our products from the American Distilling Institute, the leading independent spirits
association in the U.S., than any other North American craft distiller for each of the last ten years, plus numerous other Best of
Class, Double Gold and Gold medals from multiple national and international spirits competitions. We are one of the largest craft spirits
producers on the West Coast based on revenues and are developing a national reach in the U.S. through traditional sales channels
(wholesale, on-premises and e-commerce) and our unique and recently-developed Tribal Beverage Network (“TBN”) sales channel.
Based upon our revenues and our continued track record of winning industry awards in an increasingly competitive environment