As a pre-condition to using Hutte's packaging feature, you need to create a package on your project by running "force:package:beta:create" against your DevHub (this Trailhead piece has step-by-step instructions and gives a good introduction to packaging with SFDX). Once you have committed and pushed the resulting additions to "sfdx-project.json," Hutte detects and visualizes your package and its meta information:
Furthermore, Hutte allows you to promote (release) beta packages and install them in the target orgs of your choice.
There is more to come for this feature in the future
Enhancements to our Roadmap include supporting monorepos (managing multiple packages on a single repository)
Creation of new package versions and entirely new packages
Support for working with package ancestry and package dependencies.