Screen capture from a provisional design for the TAAT™ U.S. online store, which is set to launch in January 2021.
LAS VEGAS and VANCOUVER, British Columbia, Dec. 31, 2020 (GLOBE NEWSWIRE) -- TAAT™ LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTCQB: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “TAAT™”) is pleased to announce progress with its initiatives to potentially expand production and commercialization of its flagship product TAAT™ both domestically within the United States as well as in new international markets. By optimizing production line layouts, automating workflows, and adding new machinery to the Company’s Las Vegas, NV processing facility in which the Beyond Tobacco™ base material of TAAT™ is produced, the facility’s maximum capacity will be increased by approximately 100%. Based on this enhanced production bandwidth which could enable TAAT™ to be supplied on a larger scale, the Company has accelerated development of an e-commerce platform through which TAAT™ can be purchased online by legal-aged smokers in the United States. To further prepare for potential international expansions, the Company has now filed a total of 54 trademark applications internationally for the TAAT™ and/or Beyond Tobacco™ terms in an effort to secure intellectual property rights in markets where TAAT™ may be sold in the future.
In a press release dated November 13, 2020, the Company announced it was upgrading its equipment in order to increase the production rate of Beyond Tobacco™. At the time, the Company was producing approximately 600 lb / 272 kg of Beyond Tobacco™ per day, which was approximately 50% of its maximum capacity of 1,200 lb / 544 kg per day based on two eight-hour shifts. The Company has received and installed several upgraded units of production machinery and reconfigured its equipment and fixtures to maximize use of space and achieve greater efficiency through automation. As a result, the Company has determined it will be able to produce more than 2,400 lb / 1,088 kg of Beyond Tobacco™ per day, which is sufficient to manufacture more than four pallets (1,440 cartons each) of TAAT™. Furthermore, the Company has engaged a REALTOR® who specializes in industrial properties to find a larger facility which could allow for in-house production of Beyond Tobacco™ to be scaled to an even greater degree.
Based on initial sales performance and positive reception of TAAT™ by legal-aged smokers in Ohio, the Company has made the decision to expedite the launch of its e-commerce platform from which legal-aged smokers in the United States will be able to purchase TAAT™ Original, Smooth, and Menthol online by the carton. Subscription delivery options for TAAT™ will also be available, offering legal-aged smokers the option to automate their repeat purchases of TAAT™. Although the Company has access to nearly half of all tobacco points of sale in the state of Ohio through its first tobacco wholesale partner¹, the management of TAAT™ recognizes the opportunities presented by introducing a direct-to-consumer sales channel through the Internet to potentially access a wider audience of legal-aged smokers across the United States. Moreover, the Company intends to leverage insights from sales through the TAAT™ online store to identify new markets in the United States for potential expansions in the future. The TAAT™ online store will also include features that are standard for the tobacco industry such as verification tools for age and location. The Company anticipates that the TAAT™ online store for the United States will be launched in January 2021.
Screen capture from a provisional design for the TAAT™ U.S. online store, which is set to launch in January 2021:
Readers using news aggregation services may be unable to view the media above. Please access SEDAR or the Investor Relations section of the Company’s website for a version of this press release containing all published media.
After the U.S. launch of TAAT™ began in Ohio in October 2020, the Company announced it was pursuing trademark protection for its brand names in a total of 15 jurisdictions across four continents. In its October 21, 2020 press release, the Company stated that its decision to undertake these trademark applications was a proactive measure to prepare for potential expansions into Asia/the Middle East, Europe, Oceania, and other jurisdictions in North America. Having recently made additional trademark filings in dozens of new jurisdictions, the Company now has more than 100 active trademark applications for TAAT™ and/or Beyond Tobacco™ in a total of 54 countries.
TAAT™ Chief Executive Officer Setti Coscarella commented, “In our mission to build market share in the USD $814 billion global tobacco industry, it is imperative to be thinking globally at all times. This applies both to quantitative elements such as scalable and cost-effective manufacturing, as well as qualitative elements such as arranging prerequisites for entering a market well in advance of launching there. Our commercialization efforts may currently be primarily on Ohio, however we have been hard at work building our infrastructure with objectives to include being able to produce a greater volume of Beyond Tobacco™, pursuing trademark protection for our brand names in over 50 global markets, and offering TAAT™ for sale online to legal-aged smokers in the United States. One reason why perfecting our layouts and processes for in-house production of Beyond Tobacco™ is especially important is that we can use those layouts and processes as a baseline standard for creating new production lines without having to start from scratch, which could expedite any future additions to our production resources. We are excited to be making greater strides in 2021 as we seek to bring the better choice of TAAT™ to legal-aged smokers around the world.”
1 - As stated in the Company’s October 6, 2020 press release, its first tobacco wholesale partner has access to more than 5,000 tobacco points of sale in the state of Ohio through direct and indirect relationships. As of September 2020 there were approximately 11,392 tobacco points of sale in Ohio: https://tobaccocontrol.bmj.com/content/early/2020/09/03/tobaccocontrol-2020-055622
On behalf of the Board of Directors of the Company,
TAAT™ LIFESTYLE & WELLNESS LTD.
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT™ Investor Relations
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™ 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 Q4 2020 as the Company seeks to position itself in the $814 billion¹ global tobacco industry.
For more information, please visit http://taatglobal.com.
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 potential launch of Beyond Tobacco™, in addition to the following: Forecasted increase of the Beyond Tobacco™ production rate, potential launch of the TAAT™ online store for legal-aged smokers in the United States, and potential acceptance of trademark applications for TAAT™ and Beyond Tobacco™. 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.
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.
Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by TAAT™ Lifestyle & Wellness Ltd. can be found under the Company's profile on http://sedar.com.