Heritage Distilling Co. Expands into Kentucky with Keg 1 River City

Rhea-AI Summary

Heritage Distilling Company (Nasdaq: CASK) is expanding into the Kentucky market through a partnership with Keg 1 River City. The expansion brings Heritage's premium spirits, including Cocoa Bomb and the Salute Series collection, to Kentucky's on-premise and off-premise retailers.

The Salute Series, launched in November 2023, is a super-premium whiskey collection supporting U.S. military veterans and their families. The program has raised over $130,000 for partner charities in less than a year. The initiative evolved from an initial fundraising effort with 1st Special Forces Group (Airborne) that raised nearly $150,000 for Special Forces-related charities.

Positive

• Expansion into Kentucky market through partnership with leading distributor Keg 1 River City
• Salute Series program has raised over $130,000 for military veteran charities in less than a year
• Previous fundraising initiative generated nearly $150,000 for Special Forces-related charities

Negative

• None.

Insights

Market Research Analyst

The expansion into Kentucky represents a strategic move for Heritage Distilling, but faces significant challenges in the heart of bourbon country. While the $130,000 raised for veteran charities through the Salute Series demonstrates social impact, entering Kentucky's highly competitive and traditional spirits market requires careful consideration.

The partnership with Keg 1 River City provides important distribution infrastructure, but Heritage will need to differentiate itself in a market dominated by established bourbon brands. The focus on veteran-support initiatives and unique offerings like Cocoa Bomb could help carve out a niche, though market penetration in Kentucky's saturated spirits landscape will likely be gradual.

For a company with a market cap of just $14.7M, this expansion requires significant resources and marketing investment. While geographic diversification is positive, execution risks in this highly competitive market should be monitored closely.

Award-winning brands from the Pacific Northwest’s leading craft spirits company now available in Bourbon Country

GIG HARBOR, Wash., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Heritage Distilling Company, Inc. (“HDC” or “Heritage”) (Nasdaq: CASK), a leading craft distiller of innovative premium brands, is expanding into the Kentucky market in partnership with Keg 1 River City, the leading distributor of beer, wine and spirits in Kentucky.

Heritage’s exceptional suite of spirits now offered in Kentucky includes: Cocoa Bomb, Salute Series’ D-Day Land, Air and Sea, and ARMY Special Operations Forces Whiskey, at select on-premise and off-premise retailers throughout Kentucky. Created in November 2023, the Salute Series is a super-premium whiskey collection dedicated to honoring, celebrating, and raising funds for organizations supporting U.S. military veterans and their families. In less than a year, the program has raised more than $130,000 for partner charities.

“Craft bourbon and whiskey is at the heart of Heritage Distilling and was among the first products we went to market with,” said Heritage Distilling co-founder and CEO, Justin Stiefel. “We have a healthy respect for the distilling industry in Kentucky, and bringing craft spirits of the Pacific Northwest straight into Bourbon Country has been a sought-after milestone since our inception.”

“The Stiefels have created something truly unique in the spirits industry,” said Keg 1 River City VP of Wine and Spirits, Russell Glass. “They understand the craft of distilling spirits and have created brands that resonate with the marketplace, like the Salute Series. By partnering with charities dedicated to helping U.S. veterans and their families, consumers feel good knowing that their hard earned dollars are going to causes that support our warriors.”

What initially started as a limited fundraising initiative with 1st Special Forces Group (Airborne) – raising nearly $150,000 for Special Forces-related charities local to Joint Base Lewis-McChord eight years ago – has evolved into a nationwide initiative through partnerships with organizations such as: Green Beret Foundation, The Honor Foundation, Marine Raider Foundation, Joint Task Force K9s (JTFK9s), Shields and Stripes and others. Non-profit organizations interested in raising funds for their organizations through the program can complete an intake form on the Salute Series webpage.

Founded in 2011, Heritage Distilling has built a stellar reputation, earning accolades from prestigious institutions such as the American Distilling Institute, the San Francisco World Spirits Competition, and the World Whiskey Awards. The company’s expansion into Kentucky will allow consumers to experience a diverse lineup of craft spirits.

For more information about Heritage Distilling Company, its products, or wholesale inquiries, please visit heritagedistilling.com.

About Heritage Distilling Company, Inc.
Heritage is among the premier independent craft distilleries in the United States offering a variety of whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage has been the most awarded craft distillery in North America by the American Distilling Institute for ten years in a row out of the more than 2,600 craft producers, plus numerous other Best of Class, Double Gold, and Gold medals from multiple national and international spirits competitions. It is one of the largest craft spirits producers on the West Coast based on revenues and is developing a national reach in the U.S. through traditional sales channels (wholesale, on-premises, and e-commerce) and its unique and recently-developed Tribal Beverage Network (“TBN”) sales channel, which is collaborating with Native American tribes to develop Heritage-branded distilleries, brands, and tasting rooms and to develop brands unique to the tribes, to serve patrons of tribal casinos and entertainment venues, creating compelling social and economic benefits for participating tribal communities while allowing the tribes another channel through which to exercise tribal sovereignty.

Forward-Looking Statements
This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will," and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements include, without limitation, statements regarding anticipated results or benefits anticipated from Heritage’s partnership with Keg 1 River City or anticipated benefits of expansion into Kentucky.

Any forward-looking statements in this press release are based on Heritage’s current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks of expansion into new markets and the risks of partnering with new distributors. These and other risks concerning Heritage’s programs and operations are described in additional detail in its registration statement on Form S-1, which is on file with the SEC. Heritage explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

Contacts:

Investors
Scott Eckstein
heritage@ksca.com
(212) 896 1210

Media
Patrick Maddox
heritage@kcsa.com
(501) 680 5220

FAQ

What products is Heritage Distilling (CASK) launching in Kentucky?

Heritage Distilling is launching Cocoa Bomb, Salute Series' D-Day Land, Air and Sea, and ARMY Special Operations Forces Whiskey in Kentucky through Keg 1 River City.

How much has Heritage Distilling's (CASK) Salute Series raised for veterans?

The Salute Series, launched in November 2023, has raised over $130,000 for partner charities supporting U.S. military veterans and their families in less than a year.

When did Heritage Distilling (CASK) enter the Kentucky market?

Heritage Distilling announced its expansion into the Kentucky market through Keg 1 River City in December 2023.