TAAT™ Launches Beyond Nicotine™ Initiative in Light of Impending Federal Anti-Nicotine Regulations to Drive Awareness of TAAT™ Nicotine-Free Alternatives to Tobacco Cigarettes
TAAT™ Lifestyle & Wellness Ltd. has launched its ‘Beyond Nicotine™’ initiative in response to potential U.S. regulations aimed at capping nicotine levels in tobacco cigarettes. This program aims to highlight TAAT™ as a nicotine-free alternative for smokers aged 21 and older. Following its retail launch in Ohio in Q4 2020, the company received a CAD $1.25 million order from a Texas wholesaler. Consumer research indicated strong acceptance of TAAT™, with nearly 75% of participants rating its quality positively. The campaign includes revised messaging and promotional materials to reach its target market.
- Launch of 'Beyond Nicotine™' initiative to increase brand awareness.
- Successful launch in Ohio with strong consumer reception.
- Recent CAD $1.25 million order from Texas wholesaler indicates growing demand.
- Potential regulatory changes from the Biden administration could affect the broader tobacco market.
As reports of the Biden administration’s intent to cap nicotine levels in tobacco cigarettes have circulated throughout the month of April 2021, TAAT™ has launched an initiative titled “Beyond Nicotine™” in an effort to encourage awareness of TAAT™ among smokers aged 21+ in anticipation of these potential regulatory actions. Following a successful retail launch of TAAT™ in Ohio starting in Q4 2020, the Company plans to incorporate “Beyond Nicotine™” messaging into its current brand assets and media properties as well as upcoming launches in new U.S. markets throughout 2021 following a CAD
LAS VEGAS and VANCOUVER, British Columbia, April 23, 2021 (GLOBE NEWSWIRE) -- TAAT™ LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “TAAT™”) has launched its “Beyond Nicotine™” initiative with an objective of emphasizing the absence of nicotine in its flagship product TAAT™, which is formulated to taste and smell similarly to tobacco despite containing no actual tobacco. On Monday, April 19, 2021, the Wall Street Journal published a report that the Biden administration in the United States is considering enacting a requirement for tobacco companies to reduce nicotine levels in all cigarettes sold nationwide to a level at which they would no longer be addictive1. According to a CNBC report later that day, which covered the apparent negative impact of this announcement on the stock prices of several major tobacco firms (e.g., Altria, British American Tobacco, Philip Morris International), the goal of reducing nicotine levels in cigarettes would be to encourage smokers to give up tobacco or choose alternatives that are considered safer2. In Q4 2020, the Company began commercializing TAAT™ in Ohio, followed by the launch of its e-commerce portal enabling the majority of smokers aged 21+ in the United States to purchase TAAT™ Original, Smooth, and Menthol online for home delivery.
Based on these impending regulations to lower nicotine levels in cigarettes sold in the United States, the Company has elected to launch Beyond Nicotine™ as an approach to building awareness of TAAT™ as a nicotine-free alternative to tobacco cigarettes for smokers aged 21+. In a press release dated April 14, 2021, the Company announced several key findings from a consumer research study which reflected positive reception of TAAT™, both in concept and as an actual product, which included nearly three quarters of subjects who sampled the product classifying the overall quality as “very good” or “somewhat good”. These sentiments largely reflect in-market performance of TAAT™ to date through in-store and online sales.
A graphic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/03673a08-3a7c-4620-9424-f27874aa05ed
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.
The Beyond Nicotine™ initiative will consist of moderate revisions to the Company’s messaging in its materials and communications and potentially campaigns through various media channels (e.g., online, digital out-of-home, point of sale) which would broadcast the Beyond Nicotine™ slogan to smokers aged 21+ in the United States. As of Thursday, April 22, 2021, the Company has updated certain parts of its consumer-facing website to include Beyond Nicotine™ messaging. Furthermore, TAAT™ has started producing promotional graphics built around Beyond Nicotine™, which the Company intends to strategically place and distribute throughout the tobacco marketplace in light of these potential regulatory changes in the United States relating to nicotine.
A graphic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c41ec899-a133-44f0-a5f6-e1aa508dba18
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™ CEO Setti Coscarella commented, “This announcement from the Biden administration alters the landscape in which we operate as smokers 21+ in the United States will no longer be thinking of nicotine as just something they might be considering leaving behind, but rather something they would soon have no choice but to reduce their intake of at a bare minimum. For several months now, I have been saying how the lack of nicotine in TAAT™ products is one of our best selling points because nicotine is objectively a useless drug. Indeed, tens of millions of smokers aged 21+ in the United States can currently choose between a ‘full-nicotine’ tobacco cigarette or a nicotine-free alternative such as TAAT™. However, it is very possible that later in 2021 the former option may not exist. Smokers aged 21+ now have the opportunity to try, and perhaps switch to TAAT™ and experience the difference that can be had by forgetting about nicotine and keeping the sensations they enjoy. We therefore expect Beyond Nicotine™ to be an important element of our brand in 2021 as the U.S. tobacco industry prepares to potentially take on an unprecedented shift, which we hope to be able to capitalize upon by providing smokers aged 21+ a better and nicotine-free choice.”
Sources
On behalf of the Board of Directors of the Company,
TAAT™ LIFESTYLE & WELLNESS LTD.
“Setti Coscarella”
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT™ Investor Relations
1-833-TAAT-USA (1-833-822-8872)
investor@taatusa.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™ 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™ 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 potential launch of Beyond Tobacco™, in addition to the following: Potential outcomes and effects of the Company’s Beyond Nicotine™ initiatives. 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.
FAQ
What is TAAT's 'Beyond Nicotine™' initiative?
How did the market react to the Biden administration's nicotine regulation news?
What was the consumer response to TAAT™ products?
What order did TAAT™ receive recently?
What varieties of TAAT™ are available?
