The Company received a purchase order from GGE valued at €100,000 (CAD $149,000) after TAAT™ and GGE entered into a letter of intent for GGE to become the exclusive distributor of TAAT™ in the United Kingdom and Ireland, where the Company anticipates TAAT™ could realize a competitive advantage based on the relatively high retail cost of tobacco cigarettes in these markets, in addition to the product’s qualitative merits as a nicotine-free and tobacco-free alternative to tobacco cigarettes with a substantially similar user experience.
LAS VEGAS and VANCOUVER, British Columbia, April 30, 2021 (GLOBE NEWSWIRE) — TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “TAAT™”) is pleased to announce that it has entered into a letter of intent with Green Global Earth Ltd. (“GGE”) to be the exclusive distributor of TAAT™ Original, Smooth, and Menthol in the United Kingdom and Ireland, who placed a €100,000 purchase order for an initial supply of TAAT™. Under the terms of the purchase order, TAAT™ is to ship the full quantity to GGE’s preferred port in the United Kingdom on “free on board” (“FOB”) terms. Through the distribution relationship between the Company and GGE, TAAT™ will be commercialized in both the United Kingdom and Ireland through GGE’s existing wholesale network as an alternative to existing combustible tobacco products for smokers aged 21+. Distribution of TAAT™ in the United Kingdom and Ireland would complement the Company’s current retail distribution in Ohio and its existing e-commerce making TAAT™ available for purchase by the majority of smokers aged 21+ across the United States.
The price point of TAAT™ compared to traditional tobacco cigarettes in the United Kingdom and Ireland could represent a competitive advantage in these markets. Based on 2018 data from the World Health Organization, the prices of the most sold brand of cigarettes (standardized to a pack of 20) in international dollars (purchasing power parity adjusted) were $13.581 and $14.952 in the United Kingdom and Ireland (respectively), compared to $6.863 in the United States. With a 14.1% tobacco use incidence rate4 among the United Kingdom’s legal-aged population and an incidence rate of approximately 20% among adults in Ireland5, the Company believes there is ample opportunity for TAAT™ to establish a position in these markets.
At the outset, TAAT™ will ship domestically manufactured inventory from the United States to fulfill the current purchase order from GGE, as well as any potential future orders from GGE to the United Kingdom or Ireland in the near term. At a later date, GGE may avail its supply of raw materials and undertake manufacturing of TAAT™ on the Company’s behalf in markets in which GGE would operate under a “licensed” production and distribution agreement.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/327a8182-e0a1-4cad-acfd-6dc644132b0d
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TAAT™ Chief Executive Officer Setti Coscarella commented, “Expansion launches in the CPG category need to be conducted passively, so as to ensure the product is optimally positioned in its new markets. Although we believe TAAT™ is generally relevant to those out of the more than one billion tobacco users worldwide who aspire to leave nicotine behind, entering a new region is a complex task based on the nuances of each market in economic and competitive terms, as well as the general attitudes towards alternatives to products such as tobacco cigarettes. We are pleased to have an accomplished and well-connected wholesaler such as GGE on our side, and it is an exciting development for us to have received our first purchase order for overseas shipment as we seek to commercialize TAAT™ internationally for the first time.”
Sources
1 – World Health Organization Report on the global tobacco epidemic, 2019 – Country profile
United Kingdom of Great Britain and Northern Ireland
2 – World Health Organization Report on the global tobacco epidemic, 2019 – Country profile
Ireland
3 – World Health Organization Report on the global tobacco epidemic, 2019 – Country profile
United States of America
4 – UK Office for National Statistics Adult smoking habits in the UK: 2019
5 – Ireland Health Service Executive Adult Smoking in Ireland 2018
On behalf of the Board of Directors of the Company,
TAAT™ GLOBAL ALTERNATIVES INC.
“Setti Coscarella”
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT™ Investor Relations
1-833-TAAT-USA (1-833-822-8872)
[email protected]
THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.
About TAAT™ Global Alternatives Inc.
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™ was launched first in the United States in Q4 2020 as the Company seeks to position itself in the $814 billion1 global tobacco industry.
For more information, please visit http://taatglobal.com.
References
1 British American Tobacco – The Global Market
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the anticipated performance of TAAT™ in the tobacco industry, in addition to the following: Potential outcomes from the purchase order from and letter of intent with GGE for the distribution of TAAT™ in the United Kingdom and Ireland. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.
The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.
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