Washington-based Heritage Distilling Co is aiming to raise approximately US$6.75 million through an initial public offering (IPO).
Heritage Distilling Co operates distilleries in Washington and Oregon, producing a range of spirits such as whiskey, gin, flavoured vodka and ready-to-drink (RTD) canned products.
The company launched an IPO on Nasdaq, offering shares at a price of US$4 per share.
It has been launched to raise cash to help the business develop or acquire additional brands or products, expand sales and marketing efforts, hire staff, add operational, financial and management information systems, and expand research and development efforts for the creation of new products.
Heritage Distilling was founded in 2011 by Justin and Jennifer Stiefel, along with Drew and Sara Kellerman. The company also operates five tasting rooms in Washington and Oregon and purchased Oregon-based producer Thinking Tree Spirits in February this year.
According to the IPO listing, Heritage Distilling claims to be one of the largest craft spirits producers on the West Coast based on revenue.
The company is also distributed by Southern Glazer’s Wine and Spirits and Republic National Distributing Company. Heritage is working to expand into more states in early 2025.
Heritage Distilling also formed the Tribal Beverage Network (TBN), described as a ‘first-of-its-kind’ partnership with Native American tribes to develop Heritage-branded distilleries, brands and tasting rooms. Last month, Heritage partnered with the Stillaguamish Tribe to open the first tasting room in a tribal-owned casino in the Pacific Northwest.
The expansion of the TBN will be a key focus for Heritage as it allows the company to create a national network of tribal spirits production and retail operation locations in or around tribal casinos and ‘high-foot-traffic entertainment districts’ on tribal lands.
Heritage Distilling says these operations are exempt from certain state regulations, allowing the business to collect and keep local spirits taxes on products produced on tribal lands.
Furthermore, the company plans to partner with premium craft spirits producers in key regions across the US to co-brand and cross-operate retail tasting rooms.
Heritage Distilling says it has also structured its business ‘to minimise and most effectively manage our capital investment requirements while maintaining flexibility to rapidly scale our production capabilities to meet consumer demands’. The company outsources RTD manufacturing.
Heritage Distilling will also continue to develop new products and adopt artificial technology to maximise its marketing efforts.
The company also notes that its current production capacity can expand by approximately six times without the need for additional investment.
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Author: Nicola Carruthers
