The Company continues to place TAAT® in additional U.S. stores, with a store count now exceeding 2,700. TAAT® Original, Smooth, and Menthol (pictured above) are now carried in over 100 Southern California locations of a major global convenience chain.
Over 100 Southern California franchises in a major global convenience chain are now carrying TAAT®, following the addition of more than 80 new stores after the product was sold for just eight weeks in an initial group of stores, approximately 35% of which have already placed reorders. The Company intends to focus commercialization efforts that are specific to TAAT® Menthol in the Los Angeles area of Southern California, whose City Council recently unanimously voted to ban sales of flavoured tobacco products (e.g., menthol tobacco cigarettes) starting in 2023. As TAAT® is a non-tobacco product, the Company anticipates it can capitalize on this upcoming gap in the tobacco category.
LAS VEGAS and VANCOUVER, British Columbia, June 08, 2022 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that TAAT®Original, Smooth, and Menthol are now sold in over 100 franchised stores in Southern California belonging to a major global convenience chain, an increase of more than 80 stores in just eight weeks following an initial placement in 23 stores (as announced in the Company’s April 22, 2022 press release). TAAT® established dialogues with the owners of these franchises through an independent association of franchise owners in Southern California (the “FOA”), who are part of the convenience chain’s network of over 9,300 stores in the United States and more than 70,000 stores worldwide. Approximately 35% of the initial group of franchised stores carrying TAAT® have already placed reorders.
The Company is currently planning to begin initiatives in Southern California to promote TAAT®Menthol in light of an upcoming ban of flavoured tobacco products in Los Angeles (population 3.9 million, second-largest city in the United States) set to begin on January 1, 2023. On Wednesday, June 1, 2022, the Los Angeles City Council unanimously voted to ban the sale of flavoured tobacco products, such as menthol tobacco cigarettes1. Menthol tobacco cigarettes have proven to be exceptionally popular in Los Angeles, with 94.5% of tobacco retailers carrying products in this segment, and 31.2% displaying menthol cigarette price promotions2.
The Company continues to place TAAT® in additional U.S. stores, with a store count now exceeding 2,700. TAAT® Original, Smooth, and Menthol (pictured above) are now carried in over 100 Southern California locations of a major global convenience chain.
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TAAT® Founder Joe Deighan commented, “The Southern California FOA is a very strong community of franchise owners in this global convenience chain, in which word gets around very quickly about great new products that can be carried. Virtually all convenience stores sell tobacco cigarettes in the standard brand varieties, but outside of non-combustible offerings such as vaping there are very few alternatives to legacy products in this category. TAAT® initially performed well in the first 23 stores, and in eight weeks that has led to a 35% reorder rate as well as store count growth of about 400% just within the Southern California FOA alone. We are excited to be growing our footprint in this region, especially as TAAT®Menthol can soon become positioned to capture market share in Los Angeles based on the upcoming ban of flavoured tobacco sales, from which our products will be exempt as they do not contain tobacco.”
In connection with the acquisition of ADCO Distributors, Inc., as previously announced on May 20, 2022, the Company paid a finder's fee of an aggregate total of $36,957 cash and 112,195 common shares in the capital of the Company (the "Finder's Fee Shares") at a deemed value of $1.317602 per Finder's Fee Share. The Finder's Fee Shares are subject to a 12-month hold period, with one-third (1/3) of the aggregate number of Finder's Fee Shares being released on the 4th, 8th and 12th month from the issuance date. The finder's fee reported herein was paid by the Company to an arm’s length third party.
On behalf of the Board of Directors of the Company,
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About TAAT® Global Alternatives Inc.
TAAT® develops, manufactures, and distributes alternative products in categories to include tobacco, hemp, kratom, and other emerging segments of the CPG industry. Its flagship product is a nicotine-free, tobacco-free cigarette with a patent-pending base material formulation, sold in over 2,700 U.S. stores. With over CAD $80 million in overall net revenue in 2021, TAAT®’s facilities include a manufacturing plant in Nevada, as well as a distribution centre and multiple convenience stores in Ohio.
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 placement of TAAT® in the Southern California franchised convenience stores as detailed in the press release. 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; (iii) changes to the regulatory landscape applicable to the Company's business; and (iv) 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.
This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.
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