Company Summary: Heritage Distilling Holding Company, Inc.

Business Overview

• Heritage Distilling is a craft distiller producing a diverse range of award-winning craft spirits, including:
  • Whiskeys
  • Vodkas
  • Gins
  • Rums
  • Ready-to-Drink (RTD) canned cocktails
• The company emphasizes taste, innovation, and differentiation through proprietary products made in their own distilleries and tasting rooms.
• Operates primarily in the craft spirits segment, the fastest-growing part of the $288 billion U.S. spirits market.
• Recognized with numerous awards from the American Distilling Institute over the last ten years, more than any other North American craft distiller.
• One of the largest craft spirits producers on the West Coast based on revenue.
• Developing a national presence via wholesale, on-premises, e-commerce, direct-to-consumer sales, and a Tribal Beverage Network (TBN) with Native American tribes.

Revenue and Financials

• As of April 25, 2025:
  • Shares outstanding: 6,921,564
• Revenue (most recent data):
  • Over $18.5 million in total reported revenue for recent periods
  • Specific products such as Salute Series (military-themed spirits) generated over $1.8 million in sales
  • Other notable product sales include nearly 23,000 bottles of Salute Series products since October 2023
• Income:
  • Operating losses of approximately $14.9 million for year ending December 31, 2024
  • Operating losses of approximately $11.3 million for year ending December 31, 2023
  • Cumulative deficit: $74.1 million as of December 31, 2024

Employee and Customer Base

• Total employees: 83 (as of December 31, 2024)
  • 14 in corporate/admin
  • 7 in marketing and sales
  • 41 in retail operations
  • 21 in production, warehouse, and product development
• Customer Engagement:
  • Over 2,500 active members across tasting rooms and member programs
  • Member programs include:
    • Cask Club® (custom barrel development)
    • Spirits Club® (subscription service)
• Distribution Channels:
  • 5 company-owned tasting rooms in the Pacific Northwest (Washington and Oregon)
  • Wholesale distribution agreements with two major U.S. distributors:
    • Southern Glazer’s Wine and Spirits (approx. 34.6% market share in 2021)
    • Republic National Distributing Company (approx. 20.3% market share in 2021)
  • Operating in 7 Pacific Northwest states plus Oklahoma, Kansas, Kentucky, parts of Colorado, and control states like Virginia.
  • Recently began direct shipping to consumers via an expanded e-commerce platform, covering 45 states plus D.C.

Key Products and Brands

• Heritage Distilling Brand:
  • Award-winning spirits, including whiskeys, vodkas, gins, rums, and RTDs.
• Salute Series:
  • Military-themed spirits supporting non-profit organizations (e.g., Green Beret Foundation, Marine Raider Foundation).
  • Products like Army SOF whiskey, D-Day 80th Anniversary, Iwo Jima, War Dogs whiskey.
  • Since launch Oct 2023-Feb 2025:
    • Over 23,000 bottles sold, generating over $1.8 million.
    • Limited editions retail at $95 and $125.
• Flavored Crafts and RTDs:
  • Flavored whiskey, vodka, and canned cocktails.
  • RTD sales:
    • 4 flavors, including Peachy Bourbon and Blood Orange Vodkarita.
    • Award-winning with multiple medals in 2023-2025.
• Acquisition:
  • Acquired Thinking Tree Spirits in Eugene, Oregon, in February 2024.
  • Product portfolio now includes Butterfly Pea Lavender Vodka (named Vodka of the Year 2023 by Wine and Spirits Magazine).

Growth Strategies

• Expand direct-to-consumer online sales, leveraging data collection and potential acceptance of bitcoin payments.
• Increase wholesale volume through national accounts.
• Expand Tribal Beverage Network (TBN) collaborations with Native American tribes, including branded distilleries and tasting rooms on tribal lands.
• Continue product innovation, including aging premiums and flavor extensions.
• Develop co-located retail spaces and partnerships with other craft spirit producers.
• Scalability through leveraging third-party production, aging, and packaging.

Market Position

• The craft spirits segment accounted for over 7.5% of the U.S. spirits market (by value in 2023).
• The overall spirits market is estimated to grow to $312.5 billion by 2030, with craft spirits expected to reach over 13% of market share by value.
• The company’s focus on premium, super-premium, and affinity-driven products aligns with industry trends toward high-end spirits and recession-resistant consumption.

Summary: Heritage Distilling is a rapidly growing craft spirits producer specializing in award-winning, high-quality spirits and innovative product lines. It operates multiple tasting rooms and a national distribution network, with a strong emphasis on military, veteran, and Native American collaborations, as well as expanding e-commerce and direct sales. Despite operating losses, it holds a significant position on the West Coast, with a broad product portfolio and a focus on premium and flavored spirits targeting a rising craft and premium spirits market.