TAAT™ Begins Focused Initiative on In-Store Activation for Existing Placements in National U.S. Gas Station Chains
TAAT Global Alternatives Inc. (OTCQX: TOBAF) has announced a targeted in-store activation strategy for national gas station chains in the U.S. to enhance its presence in the tobacco market, which is rapidly growing. The company aims to engage smokers aged 21+ through creative in-store promotions and advertising tactics, specifically tailored for gas stations where its products are sold. This initiative follows successful video advertisements that led to increased consumer requests for TAAT products. The objective is to improve wholesale reorder rates and foster long-term customer loyalty.
- Execution of in-store activation strategies targeting gas station chains to enhance sales.
- Successful rollout of over 2,000 retail locations in the U.S. within one year.
- Increased visibility and brand awareness through a statewide video advertisement campaign.
- Introduction of 'TAAT Twos' sampling packs to attract hesitant customers.
- None.
LAS VEGAS and VANCOUVER, British Columbia, Jan. 21, 2022 (GLOBE NEWSWIRE) -- TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT™”) announces that in 2022 it is commencing a targeted in-store activation strategy for national gas station chains in the United States, a key retail segment for the tobacco industry that represents a steadily growing share of TAAT™ retailers. In its January 18, 2022 press release the Company stated its plan to enhance in-store activation strategies to further strengthen its volume of repeat orders. TAAT™ has elected to place a specialized focus on developing in-store activation tactics to engage smokers aged 21+ in gas stations where tobacco products are sold, as the relatively standard in-store experience of purchasing tobacco in gas stations could allow for such tactics to be scaled rapidly across the United States without significant modification. Furthermore, the existing presence of TAAT™ in major national gas station chains enables the Company to execute these tactics in short order through its network of tobacco wholesalers. Current locations of TAAT™ retailers can be viewed on the recently updated store locator feature on TryTAAT: https://trytaat.com/pages/sca-store-locator
By driving in-store conversions in settings such as gas stations through focused initiatives, the Company believes it can more efficiently acquire smokers aged 21+ as users of TAAT™ which could lead to long-term repeat purchases of TAAT™ products at retail. One of the Company’s objectives in 2022 is to further grow its wholesale reorder rate, which is generally propelled by robust in-store sales on a repeat basis.
Picture 1 accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/89a869cb-df1e-4852-ad77-b7866f5dd3b9
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.
Approximately one month after launching TAAT™ for the first time in Ohio, the Company announced a statewide video advertisement campaign on over 10,400 gas pump displays, reportedly leading to numerous smokers aged 21+ requesting TAAT™ in a given station’s retail store after viewing the video advertisement. After evaluating purchasing interactions at fuel retail points of sale, the Company has identified several opportunities to optimize its in-store activations in gas stations, to include the following:
- Countertop and Pump Signage/Displays: Because the concept of a nicotine-free and tobacco-free alternative to cigarettes is unprecedented for many smokers aged 21+, the Company plans to implement conspicuous brand fixtures for countertops in gas stations as well as fuel pumps, explicitly conveying the value proposition of TAAT™ (e.g., its “Beyond Nicotine™” slogan). As this form of promotion is prohibited for tobacco products in the United States, this is a unique opportunity to capture the attention of smokers aged 21+ as a method for activation at the point of sale for tobacco products.
- Staff Training and In-Store Audits: Given the fairly routine nature of a tobacco cigarette purchase by a current smoker aged 21+ with an existing brand preference, in-store personnel can play a key role with respect to introducing the idea of an alternative such as TAAT™ Original, Smooth, or Menthol at the point of sale. To this end, the Company plans to work with its wholesale partners to institute sales training programs for staff in an effort to open more dialogues for the purpose of driving conversions. Correspondingly, TAAT™ plans to privately conduct audits to ensure sales procedures are being followed, in line with standard in-store evaluation protocols for the CPG industry.
- “TAAT™ Twos” Small-Format Samples: Throughout 2021, anecdotes from TAAT™ retailers indicated that smokers aged 21+ were often hesitant to purchase a full 20-stick pack to sample TAAT™ for the first time. Because tobacco cigarettes are not offered in “sample” pack sizes, TAAT™ plans to capitalize on this deficit by offering “TAAT™ Twos”; a two-stick pack of TAAT™ Original, Smooth, or Menthol as an approachable and low-cost option for sampling TAAT™. The Company believes that by lowering the barrier to sampling TAAT™ it could improve conversion rates in settings such as gas stations.
- Integration with Chain-Wide Programs: Beginning this year, the Company will actively seek to participate in chain-wide programs of the national gas station chains whose stores currently carry TAAT™ products, to optimize conversions at the store level with the assistance and supervision of the franchisor. By doing so, the Company could more easily penetrate new markets that are not serviced by its existing distributors through potential rollouts led by a given gas station chain at the corporate level.
Picture 2 accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/15ffd140-a8bc-4494-9676-a56ffa5c6fad
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.
TAAT™ Chief Executive Officer Setti Coscarella commented, “We are very pleased to have landed placements of TAAT™ in over 2,000 stores in the United States in about one year of selling TAAT™ at retail, and we are excited to have the opportunity to leverage this presence by optimizing our in-store activation tactics to prompt more smokers aged 21+ to try TAAT™. Although this is something we plan to do in all of our existing and newly added points of sale, gas stations represent a unique opportunity for us based on the initial performance of TAAT™ in some of the largest chains across the country whose stores already carry the product. For motorists who are smokers aged 21+ filling up on gas wherever their travels may take them, the process of pumping gas, going into the store, and buying a pack of cigarettes is fairly routine and may appear to provide little opportunity to influence them to purchase an alternative such as TAAT™ instead. However, between our initial gas station advertisements in Ohio last January and the performance of TAAT™ in national chain gas stations across the country over the course of the year, we have come to better understand how to navigate the activation process effectively in that setting. As we develop relationships with these national gas station chains as well as the tobacco wholesalers with whom they do business, we have recognized this is a key segment of retailers for us in line with our objective to fortify our market share in the United States in 2022. We therefore look forward to executing these strategies in partnership with our tobacco wholesalers, capitalizing on our existing presence in gas stations to bring smokers aged 21+ a better choice.”
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)
investor@taatglobal.com
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
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: Execution of the in-store activation strategies described 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; 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™ Global Alternatives Inc. can be found under the Company's profile on http://sedar.com.
FAQ
What is TAAT's strategy for U.S. gas stations in 2022?
How many stores carry TAAT products in the U.S.?
What unique marketing strategies is TAAT using at gas stations?
What was the impact of the video advertisement campaign for TAAT?
What is the goal of TAAT's in-store activation strategies?
