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TAAT Lifestyle & Wellness Ltd
Symbol TAAT
Shares Issued 86,212,272
Close 2020-11-20 C$ 4.00
Recent Sedar Documents

TAAT places promotional graphics in Ohio locations

2020-11-20 16:14 ET - News Release

Mr. Setti Coscarella reports

A SNEAK PEEK: TAAT REVEALS FIRST PLACEMENTS OF IN-STORE GRAPHICS IN SELECT LOCATIONS OF OHIO TOBACCO RETAILERS

TAAT Lifestyle & Wellness Ltd. has begun placing in-store promotional graphics for TAAT in select Ohio points-of-sale, in preparation for the official launch of TAAT set to take place later this quarter. In a press release dated Oct. 6, 2020, the company announced it would be launching TAAT, its flagship product, in the state of Ohio, where it has secured distributorship with ADCO Distributors Inc., a large Ohio tobacco wholesaler which has access to more than 5,000 tobacco points-of-sale in the state through direct and indirect relationships. ADCO is a distributor of tobacco products for some of the world's largest tobacco companies to include the following:

  • Altria Group Inc. (parent company of several tobacco market leaders in the United States, including Philip Morris USA, whose brands such as Marlboro had a 49.7-per-cent cigarette market share in the United States in 2019);
  • ITG Brands LLC (third-largest tobacco company in the United States, part of Imperial Brands PLC; brand portfolio includes Winston, Kool, Salem and Maverick);
  • RJ Reynolds Tobacco Company (subsidiary of British American Tobacco, second-largest tobacco company in the United States with three of the top-five cigarette brands in the United States, including Newport, Camel and Pall Mall, which, in 2017, had a combined U.S. market share of 30 per cent).

In the company's Oct. 30, 2020, press release, the rationale for choosing Ohio as TAAT's launch market was explained based on the unique merits of Ohio in comparison with other markets in the United States. Further detail was given in a video statement titled "Four Reasons for Ohio," made by the company's chief executive officer Setti Coscarella. To date, the company has received an initial order for each of the original, smooth and menthol varieties of TAAT from ADCO, its first distributor in Ohio. Further, an average of more than 100 TAAT sample requests have been received per day through the company's TryTAAT landing page. As prelaunch interest in TAAT continues to gain momentum, the company has commenced in-store initiatives, which include placing promotional materials in conspicuous areas of a given point-of-sale, with an objective of attracting the attention of current tobacco smokers of legal age to trial the product.

The company has developed Beyond Tobacco, the nicotine-free and tobacco-free base material of TAAT, which is its flagship product. Engineered to closely emulate the experience of smoking a tobacco cigarette, TAAT has an intended use case of providing current tobacco smokers of legal age the choice of continuing to enjoy the experience of smoking, without consuming nicotine. TAAT is being commercialized under the leadership of an executive team with considerable experience in the tobacco industry throughout North America. As of this writing, the company is producing approximately 600 pounds per 272 kilograms of Beyond Tobacco per day in its Las Vegas, Nev., processing facility, which is sufficient to manufacture a full pallet of 1,440 10-pack cartons of TAAT.

Sales efforts for TAAT in Ohio have been led by a key accounts manager with more than a decade of sales experience for a big tobacco firm in the northeastern United States, in addition to a sales position for a maker of vaping products. To provide insight regarding the company's sales activities in the state of Ohio, the key accounts manager made a video statement summarizing all sales-related progress to date in advance of TAAT's launch. In the video statement, in-store footage is also shown to provide an example of the retail settings in which TAAT is to be sold initially.

TAAT chief executive officer Setti Coscarella commented: "It was less than two months ago that the provisional new pack designs for TAAT were released, which brought us one step closer to being ready to sell TAAT at retail. In just seven weeks since then, we secured distribution through a large tobacco wholesaler in Ohio, who has already placed an initial order, made trademark filings in what is now a total of 15 jurisdictions, received and processed several tons of biomass for making Beyond Tobacco, and launched our TryTAAT landing page, which has seen exceptional success so far. We are now at the point at which we are beginning to set up in-store promotional graphics as part of our awareness campaign, which began with our digital marketing efforts starting at the end of October, 2020. With in-store promotional materials, our objective is to make current tobacco smokers of legal age in Ohio aware of the TAAT brand in a context in which they can trial the product by purchasing it on the spot. With expert tobacco category sales leadership on the ground in Ohio, I am very pleased with the progress we have made in laying the groundwork to establish a sales pipeline in our launch market. I look forward to getting into motion in Ohio as we work towards a successful launch, which I hope we can replicate in new markets both in the United States and globally."

ADCO chief operating officer Pat Bell commented: "We have been in the tobacco wholesale business in Ohio since 1960, and in my time here, I have observed many trends in terms of what sells in the tobacco category in this market. Although alternatives to smoking tobacco such as vaping appear to be popular, sales volumes for tobacco cigarettes have not dropped off drastically, which suggests that current smokers of legal age ultimately continue to smoke combustible products in the long run. TAAT has taken an innovative approach to closely replicating the experience of smoking a tobacco cigarette, right down to the product and packaging formats, which are similar to those of existing brands of tobacco cigarettes. Our sales team has been actively securing preorders for TAAT products. As I anticipated, reactions from retailers for this product have been overwhelmingly positive. In addition to providing distribution of TAAT to tobacco retailers in Ohio, we have already established redistribution agreements with several other wholesalers who also predict TAAT can sell successfully in this market. We have been working hard behind the scenes to prepare for TAAT's launch here in Ohio, and I am excited for the first batch of TAAT to arrive at our warehouse so that we can get to work on processing and sending out orders."

About TAAT Lifestyle & Wellness Ltd.

The company has developed TAAT, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in original, smooth and menthol varieties. TAAT's base material is Beyond Tobacco, a proprietary blend which undergoes a patent-pending refinement technique causing its scent and taste to resemble tobacco. Under executive leadership with big tobacco pedigree, TAAT is launching in the United States in fourth quarter 2020 as the company seeks to position itself in the $814-billion (1) global tobacco industry.

Reference

(1) British American Tobacco -- The Global Market.

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