TAAT® Highlights Seasoned Tobacco Industry Veterans Joining Management Team After ADCO Acquisition

Rhea-AI Summary

TAAT Global Alternatives Inc. (OTCQX: TOBAF) has strengthened its management team following its acquisition of ADCO Distributors, which reported over CAD $87 million in net revenues in 2021. Key executives Pat Bell and Phillip Krumlauf, with extensive experience in the tobacco industry, join the TAAT team to enhance market share in the $812 billion global tobacco market. This acquisition aims to capitalize on ADCO's distribution capabilities while leveraging the executives' industry expertise to drive growth and expand TAAT's presence in over 2,700 stores across the U.S.

Positive

• Acquisition of ADCO enhances distribution capabilities and market reach.
• Onboarding experienced executives with over 50 years in the tobacco industry.
• Potential for increased market share in the $812 billion tobacco market.

Negative

• None.

With over 50 years of combined experience in the tobacco and convenience industries, TAAT® welcomes Pat Bell and Phillip Krumlauf to its executive management team following the Company’s acquisition of ADCO; a convenience wholesaler in Ohio with over CAD $87 million in net revenues in 2021¹.

LAS VEGAS and VANCOUVER, British Columbia, May 25, 2022 (GLOBE NEWSWIRE) --  TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) hereby announces that as a result of its acquisition of ADCO Distributors, Inc. (“ADCO”) as announced in the Company’s May 20, 2022 press release, the TAAT® management team has been further strengthened by onboarding accomplished executives from the tobacco and convenience industries as a continuation of their respective engagements with ADCO. In 2022, TAAT® is ambitiously pursuing additional market share in the USD $812 billion global tobacco category, and believes that these enhancements to the Company’s management team with over 50 years of combined experience in the United States could prove instrumental to its ability to grow the current TAAT® footprint of over 2,700 stores nationwide.

Two key appointees to the TAAT® management team are profiled below:

Pat Bell: After becoming ADCO’s Chief Operating Officer in 2016, Mr. Bell grew ADCO’s net revenues from USD $45 million to over USD $80 million. In addition to this role, Mr. Bell is also the Chairman and President of the Ohio Wholesale Marketers Association; whose Associate Trustees include personnel from Altria Group, ITG Brands, and R.J. Reynolds². For five years, Mr. Bell was a Territory Manager at Swisher International, maker of the world’s best-selling cigar Swisher Sweets, who currently ships over two billion cigars per year to 70 countries³. Right before joining ADCO, Mr. Bell was an Account Manager for ​​Commonwealth-Altadis; a U.S. division of the global tobacco giant Imperial Brands⁴. Mr. Bell provided insights about his vision for TAAT® and ADCO after closing the acquisition in a video released by the Company on May 20, 2022.

Phillip Krumlauf: During his 34-year career at R.J. Reynolds, Mr. Krumlauf held positions in U.S. markets to include California, Maryland, and Ohio. In addition to sales roles, Mr. Krumlauf was also a Training and Development Manager for new sales representatives of R.J. Reynolds, providing ongoing evaluations and follow-up coaching to optimize performance. From 1999 to 2021, Mr. Krumlauf managed and grew a USD $100 million territory based in Akron, Ohio for R.J. Reynolds. In this capacity, Mr. Krumlauf negotiated favourable wholesale and retail contracts, while cultivating long-term business relationships.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c8f0e79d-fccf-4803-8892-89ee59f45908

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® Founder Joe Deighan commented, “The benefits of acquiring ADCO go far beyond their distribution infrastructure and wholesale network, as we are also onboarding some exceptionally talented veterans of the tobacco and convenience industries to our management team. As we continue to grow our presence in the tobacco space, this type of industry experience is invaluable to us for creating and maintaining a competitive edge. We are delighted to be welcoming individuals such as Mr. Bell and Mr. Krumlauf to the TAAT® team, and we look forward to working together in leveraging our respective strengths to drive long-term growth.”

Sources

1 - https://www.globenewswire.com/en/news-release/2022/02/26/2392598/0/en/TAAT-Enters-into-Agreement-to-Acquire-Ohio-Based-Distributor-to-Enhance-its-Position-in-the-U-S-Tobacco-Industry.html

2 - http://ohiowholesalers.org/aws/OWMA/pt/sp/board

3 - https://swishersweets.com/pages/about

4 - https://www.imperialbrandsplc.com/about-us/our-companies/itg-brands.html

On behalf of the Board of Directors of the Company,

TAAT® GLOBAL ALTERNATIVES INC.

“Joe Deighan”

Joe Deighan, COO 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 $812 billion¹ global tobacco industry.

For more information, please visit http://taatglobal.com.

References

¹ Statista: Consumer Markets - Tobacco Products

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 and impact from the engagement of Mr. Bell and Mr. Krumlauf by TAAT® following the completion of its acquisition of ADCO. 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.

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 the significance of the acquisition of ADCO by TAAT Global Alternatives Inc.?

The acquisition enhances TAAT's distribution network and adds experienced executives to its management team, potentially increasing market presence in the tobacco industry.

Who are the new executive members joining TAAT after the acquisition?

Pat Bell and Phillip Krumlauf are the new executives, both with extensive experience in the tobacco and convenience industries.

What were the financials of ADCO prior to the acquisition by TAAT?

ADCO reported over CAD $87 million in net revenues in 2021.

How does the acquisition affect TAAT's market strategy?

The acquisition is part of TAAT's strategy to increase its market share in the $812 billion global tobacco category.

What experience do the new executives bring to TAAT?

Both Pat Bell and Phillip Krumlauf bring decades of experience and proven track records in growing revenue and managing large territories in the tobacco sector.