We are a craft distillery 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 more than $21.4 billion in 2023, an increase of 20.9% from 2021, 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, we believe we are one of the leading craft spirits producers in the United States. We sell our products through wholesale distribution, directly to consumers through our five owned and operated distilleries and tasting rooms located in Washington and Oregon, and by shipping directly to consumers on-line where legal. Currently, we sell products primarily in the Pacific Northwest with limited distribution in other states throughout the U.S. In addition, in collaboration with Native American tribes, we have recently developed a new sales, manufacturing, and distribution channel on tribal lands that we expect will increase and broaden the recognition of our brand as that network expands nationally. Our growth strategy is based on three primary areas. First, we are focused on growing our direct-to-consumer (“DtC”) sales by shipping to legal purchasers to their homes where allowed. We currently use a three-tier compliant, third-party platform to conduct these sales and deliveries in 46 states in which approximately 96.8% of the U.S. population reside. This allows us to develop a relationship directly with the consumer through higher-margin sales while collecting valuable data about our best performing products. We can then use this data to target the consumer based on location, age, key demographics, and product types. With the data collected, we can also retarget and resell to these customers thereby generating more revenue. We are also focused on growing our wholesale volume and revenue, which is supported by our DtC strategy. Our distributors resell our products through local, regional and key national accounts both on-premises and off-premises. By building brand recognition for key products in selected regions or states through DtC sales, we can better support the wholesale launch, marketing, and product pull-through of those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high-margin sales, growing volume through wholesale distribution is the most efficient way to drive large-scale growth across retail chains. Third, we are focused on expanded growth of our collaboration with Native American tribes through the TBN model we created. In concert with tribal partners, this sales channel includes Heritage-branded micro production hubs, Heritage-branded stores and tasting rooms, and the sale of our products and new tribally-branded products. In the typical TBN collaboration, the tribes will own these businesses and we will receive a royalty on gross sales through licenses we grant to use our brands, products, recipes, programs, IP, new product development, on-going compliance support, and the other support we provide. The TBN is expected to form a network of regional production hubs that will support product trials and sampling and will generate sales of finished, intermediate, and bulk spirits depending on location, equipment, and market. Importantly, because these premium spirits will be produced locally, we believe the TBN will promote the positioning of our brands as local and regional. We expect that, as the brands grow and the TBN footprint expands, there will be an important synergy with increased adoption and growth through our wholesale channels in the regions where the TBN locations are driving trial and awareness. Similarly, as demand for our products grows through our wholesale channels, there should be a positive effect on the demand for our products through the tribal distilleries. We were incorporated in the State of Delaware on April 25, 2019. Heritage Distilling Company, Inc. (“HDC”) was incorporated in the State of Washington on July 19, 2011 to own and operate a network of craft distilleries for the purpose of creating products and services around craft distilling, blending, bottling, and marketing premium distilled spirits. HDC’s first distillery began production in late 2012 in Gig Harbor, WA. On March 4, 2019, as part of a corporate restructuring, HDC became our wholly-owned subsidiary. As a result of the restructuring, we are a holding company and HDC and Thinking Tree Spirits are our operating subsidiaries through which all of our business is conducted. Our principal executive offices are located at 9668 Bujacich Road, Gig Harbor, Washington.
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It's like **Boston Beer Company (Samuel Adams)**, but for craft spirits like whiskey, vodka, and gin.
Consider it the **Chipotle** of craft spirits – focusing on artisanal quality and fresh ingredients, but for whiskey, vodka, and gin instead of burritos.
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- Brown Sugar Bourbon (BSB): A distinctive, proprietary line of flavored whiskeys, known for its sweet profile.
- Whiskey: A collection of traditional whiskeys, including bourbon and rye varieties.
- Vodka: A range of vodkas crafted using their distilling processes.
- Gin: Their premium gin offerings.
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Heritage Distilling (symbol: IPST) primarily sells to **other companies**.
The major customers of Heritage Distilling are **distributors**. As a craft distillery, Heritage Distilling operates predominantly through a three-tier distribution system in the United States, selling its spirits to wholesale distributors. These distributors then sell to various retailers (such as liquor stores, grocery stores, restaurants, and bars), who ultimately sell the products to individual consumers. The company also engages in direct exports to international markets.
According to its annual report (Form 10-K), Heritage Distilling relies significantly on a few major distributors. For example, in the year ended December 31, 2022, its largest distributor accounted for 37% of total revenues, its second largest for 19%, and its third largest for 11%. This concentration of sales clearly indicates that distributors are its primary direct customers.
However, Heritage Distilling Company, Inc. **does not publicly disclose the specific names of these major distributor companies** in its SEC filings or on its corporate website. Therefore, while distributors are identified as the major customers, their individual company names and public symbols cannot be provided.
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Justin Stiefel, Co-Founder, CEO & Chairman
Mr. Stiefel is a co-founder of Heritage Distilling and has been its CEO and Chairman. He is recognized as the driving force behind Heritage's focus on consumer-friendly products and experiences and is the creator of the Tribal Beverage Network (TBN) concept, having successfully lobbied Congress in 2018 to repeal an 1834 statute that prohibited distilling in Indian Country. Prior to co-founding Heritage, Mr. Stiefel spent 13 years in Washington D.C., working primarily in the United States Senate on taxation, economic development, banking, and oil and gas policy. He was also a Principal at Stiefel Strategies, Inc., a consulting practice, and previously served as Of Counsel at the international law firm of Dorsey and Whitney LLP.
Michael Carrosino, Executive Vice President of Finance & Chief Financial Officer
Mr. Carrosino has served as Heritage's Acting Chief Financial Officer since June 2023 and was appointed Chief Financial Officer as of December 31, 2024. He is a veteran Finance and Operations executive with over 40 years of experience across multiple public and private industries. His expertise spans Accounting, FP&A, Human Resources, Operations, Mergers & Acquisitions (M&A), divestitures, fundraisings, and restructurings. Mr. Carrosino has held Chief Financial Officer positions at several companies, including Pacific Biometrics Inc., Experticity, Conversay, Helix BioMedix, Tatoosh, Foss Maritime, The Space Needle, TomboyX, and Hyperion Innovations / ColdHeat, before consulting at CFO Selections.
Jennifer Stiefel, Co-Founder, President & Director
Mrs. Stiefel is a co-founder of Heritage Distilling and has served as President of the Company since 2011. She is instrumental in overseeing the Heritage brand preservation and consumer experience and plays a key role in growing the Tribal Beverage Network (TBN). Before co-founding Heritage, Mrs. Stiefel worked as a staff assistant for the United States Senate Committee on Appropriations and was a teacher at Fairfax County Public Schools.
Dani Perkins, Senior Vice President of Sales
Ms. Perkins serves as the Senior Vice President of Sales for Heritage Distilling, having joined the company in 2018. She brings 14 years of experience in the alcohol industry and is responsible for overseeing wholesale sales and distribution, managing the wholesale sales team and contractors, and setting sales goals. Prior to her current role, she held positions at Heritage as Regional Vice President of Sales — West and Vice President of Control States. Before joining Heritage Distilling, Ms. Perkins was a Sales Manager with New Holland Brewing Company and began her career as a Beverage Director in Chicago, IL.
Beth A. Marker, Senior Vice President, Retail Operations
Ms. Marker holds the position of Senior Vice President, Retail Operations at Heritage Distilling Holding Company.
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Heritage Distilling (IPST) faces two clear emerging threats:
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Accelerated Shift Towards Direct-to-Consumer (DTC) Shipping for Spirits: The evolving regulatory landscape and increasing consumer demand for e-commerce and home delivery are pushing the spirits industry towards more widespread direct-to-consumer shipping. This emerging model threatens the traditional three-tier distribution system (producer-distributor-retailer) that Heritage Distilling operates within. If DTC becomes widely adopted and efficient, it could empower new, digitally native spirits brands that bypass traditional distribution and retail presence, or allow large established spirits companies to flood the market directly to consumers. This shift could significantly challenge IPST's reliance on its physical tasting rooms and existing retail distribution networks, similar to how Netflix disrupted Blockbuster's physical distribution model.
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Rapid Growth and Dominance of the Ready-to-Drink (RTD) Cocktail Market: The market for pre-mixed, convenient ready-to-drink cocktails (including canned and pouched cocktails) is experiencing explosive growth, attracting significant investment from major beverage companies and new, agile entrants. This trend reflects a shift in consumer preferences towards convenience, variety, and new consumption occasions. While IPST does have some RTD offerings, its core business model and brand identity are rooted in craft distilled bottled spirits. The overwhelming success and market share capture by dedicated RTD brands and large-scale producers could significantly cannibalize sales of traditional bottled spirits, shifting overall market demand away from IPST's core product lines and creating intense competition in a segment where larger players may have substantial scale and marketing advantages, akin to how YouTube challenged traditional cable programming by offering a new consumption paradigm.
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Heritage Distilling (IPST) operates in the U.S. spirits market, primarily focusing on craft spirits such as whiskey, vodka, gin, rum, and ready-to-drink (RTD) cocktails.
Addressable Market Sizes (U.S. Region):
- U.S. Craft Spirits Market: The U.S. craft spirits market reached $7.9 billion in sales in 2022. The North American craft spirits market was valued at USD 13.8 billion in 2023. The U.S. held an 88% share of the craft spirits market in North America in 2024, and the U.S. craft spirits market is projected to grow at a Compound Annual Growth Rate (CAGR) of 29.4% from 2024 to 2030.
- U.S. Ready-to-Drink (RTD) Cocktails Market: This market was valued at USD 903.4 million in 2024 and is anticipated to grow to USD 2.11 billion by 2030, exhibiting a CAGR of 15.3% from 2025 to 2030. Another projection estimates the U.S. RTD cocktails market size at US$ 943.3 million in 2025, expected to reach US$ 2,374.9 million by 2032 with a CAGR of 14.1% from 2025 to 2032.
- U.S. White Spirits Market (Vodka, Gin, and White Rum): The U.S. white spirits market was valued at USD 16.50 billion in 2024, is estimated to reach USD 17.65 billion in 2025, and is projected to reach USD 30.33 billion by 2033, growing at a CAGR of 7% from 2025 to 2033.
- Overall U.S. Spirits Market: The broader U.S. spirits market was valued at approximately $83.41 billion in 2024, with projections suggesting growth to $107.84 billion by 2029 at a CAGR of 5.27%. Other estimates show the U.S. spirits market growing from USD 120.34 billion in 2025 to USD 136.87 billion in 2030 at a CAGR of 2.61%.
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Heritage Distilling (IPST), which has rebranded its holding company as IP Strategy, has outlined several key drivers for future revenue growth over the next two to three years, stemming from both its refined spirits business and a new strategic focus on tokenized intellectual property.
The expected drivers of future revenue growth include:
- Growth of the Tribal Beverage Network (TBN) Program: Heritage Distilling plans to expand its partnerships with Native American tribes to develop Heritage-branded distilleries, tasting rooms, and unique tribal-branded products, primarily located in or near tribal casino properties. This strategy aims to leverage experiential marketing and new distribution channels.
- Expansion of Direct-to-Consumer (DtC) and Wholesale Distribution: Following a strategic transition that includes closing company-owned tasting rooms and shifting to contract production, the company intends to focus its resources on maintaining its higher-margin Direct-to-Consumer sales and growing wholesale volumes for its craft spirits. This streamlining is expected to accelerate profitability in the craft spirits segment.
- New Product Innovation in Craft Spirits: Heritage Distilling plans to continue its focus on brand development and product innovation within its spirits portfolio, which includes whiskeys, vodkas, gins, rums, and ready-to-drink canned cocktails. The company aims to rapidly develop and test new products through DtC sales and expand them into broader markets if successful.
- Revenue Generation from the Story IP Blockchain Validator Business: Operating as IP Strategy, the company has launched a validator infrastructure on the Story IP blockchain. This business generates revenue through staking rewards from its significant holding of $IP tokens and commission income from third-party delegations to its validator. This is considered a core and highly margin-accretive revenue stream.
- Increased Demand for the $IP Token and Story Ecosystem Expansion: The company anticipates that as the Story ecosystem grows, with more intellectual property assets moving on-chain and increased staking participation and transaction volume, it will strengthen its revenue base. The growing demand for the underlying $IP token and increased validating needs are expected to positively impact the validator business.
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Share Repurchases
- Heritage Distilling, in collaboration with the Story Foundation, initiated an $82 million buyback program for $IP tokens from August 15 to November 16, 2025.
Share Issuance
- Heritage Distilling completed a $223.8 million private placement financing on August 15, 2025, which included $95 million in cash and $128.8 million in $IP tokens.
- Stockholders approved an increase in the authorized shares of common stock from 495 million to 995 million in September 2025.
- A 1-for-20 reverse stock split became effective on November 5, 2025, reducing outstanding shares from approximately 183.5 million to about 9.17 million.
Inbound Investments
- A $223.8 million private placement financing closed on August 15, 2025, supported by Story Foundation and other investors including a16z crypto, Amber Group, Arrington Capital, dao5, Hashed, Mirana Ventures, Neoclassic Capital, Open World, Polychain Capital, Selini Capital, Stix, and Syncracy Capital.
- This financing comprised $95 million in cash and $128.8 million in $IP tokens.
Outbound Investments
- Heritage Distilling adopted a Cryptocurrency Treasury Reserve Policy and now holds over 53.2 million $IP tokens, valued at approximately $731 million as of September 21, 2025, or over $320 million as of August 22, 2025.
- The company used $80 million in cash proceeds from a private placement to acquire 23,529,411.76 $IP tokens at $3.40 per token.
- Heritage Distilling acquired Thinking Tree Spirits on February 16, 2024.
Capital Expenditures
- Capital expenditures for the last 12 months totaled $156,983.
- The company announced a significant restructuring of its alcohol business, including closing all company-owned tasting rooms and shifting spirits production to third-party partners by December 31, 2025, which is expected to reduce ongoing operating expenses by over $5 million annually and lower working capital needs by more than $2 million annually.
