Heritage Distilling hits profitability for first time
Washington-based craft spirits producer Heritage Distilling Company is in the black for the first time after going public and expanding into new markets.
Heritage Distilling has released its 2024 financial results, reporting 5.4% year-over-year growth to US$8.4 million, with a net income exceeding US$700,000, or US$0.05 per share.
Top-line revenue increased by 26.4% to US$3.1m in the fourth quarter (Q4) of 2024 versus that same period the year prior.
The full-year revenue increase was mainly drive by product sales, up by 28.8% to US$6.6m.
In total, Heritage reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$4.54m and a net income of US$710,458, marking the first time the company has achieved profitability.
In October, Heritage opened a new tasting room at Angel of the Winds Casino Resort in Arlington, Washington while the following month, the firm successfully transitioned to a publicly traded company.
CEO Justin Stiefel calls it a transformative year for the brand.
“This move strengthened our balance sheet, significantly reduced our liabilities, and put us in a position to grow significantly,” Steifel said.
“In addition to our financial progress, we expanded into new markets last year including Colorado, Kentucky, and Oklahoma, launched new products, and continued our support for non-profits and charities.
“With a reach in 47 states, we plan to keep extending our growth through online direct-to-consumer sales and via company-owned and co-located tasting rooms, as well as through our Tribal Beverage Network (TBN).”
The company also added three new board members over the past year.
Troy Alstead is a 24-year veteran of Starbucks as chief financial officer and chief operating officer, Andrew Varga is a 23-year veteran of Brown-Forman as chief marketing officer, and Matt Swann is a 10 year vice-president at Amazon.
‘Poised for continued expansion’
“With a solid financial foundation from which to build, Heritage is poised for continued expansion in 2025, with preliminary first-quarter 2025 results already looking promising,” Stiefel added.
“We have also identified more than US$1 million in annualised cost reductions already being put into place in 2025 as we work to get more efficient and preserve cash while focusing our resources on profitable growth.”
New labels launched under its Salute Series brand generated more than US$2.4m in retail sales, with more than 87% solid though direct-to-consumer (DTC) shipping.
The brand has raised more than US$200,000 for military and first responder charities, with first-quarter 2025 sales of the Salute Series surpassing Q4 sales via DTC.
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