TAAT® Preparing to Launch in Switzerland to Capitalize on New Competitive Advantages

Rhea-AI Summary

TAAT Global Alternatives Inc. (CSE: TAAT, OTCQX: TOBAF) is set to launch its tobacco-free products—Original, Smooth, and Menthol—in Switzerland, following a pivotal legislative change banning tobacco advertising in public spaces. With Switzerland's adult smoking rate at 27%, significantly higher than the U.S., TAAT aims to capitalize on this opportunity. The company is finalizing a distribution agreement and expects to obtain governmental approval soon. This move aligns with TAAT's strategy to leverage advertising freedoms and establish a foothold in the European market.

Positive

• Launch of tobacco-free products in Switzerland, capitalizing on a 27% adult smoking rate.
• Strategic timing with recent tobacco advertising ban to enhance market presence.
• Potential for greater market penetration in Europe due to favorable regulations.

Negative

• None.

LAS VEGAS and VANCOUVER, British Columbia, May 06, 2022 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that it is working with a tobacco distributor that has a presence in Zurich and Zug to coordinate a near-term launch of TAAT® Original, Smooth, and Menthol in Switzerland with a primary objective of capitalizing on recent changes to Switzerland’s market landscape causing tobacco brands to be prohibited from advertising in public places. Although tobacco advertising has long been banned in most Western markets, Switzerland was among the last to allow tobacco product advertisements in public spaces (e.g., on billboards, in movie theatres, and at events such as music festivals). On February 13, 2022, voters in Switzerland overwhelmingly approved legislation forbidding tobacco companies from advertising in public spaces¹.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cddd3181-f921-4051-8fda-3808054c7d22

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 Company has been exploring several launch opportunities throughout Europe, particularly after finalizing the advanced formulation of Beyond Tobacco™ using reconstituted material. In a press release dated September 3, 2021, TAAT® announced that the advanced Beyond Tobacco™ formulation yielded excellent feedback from tobacco wholesalers in markets to include Germany, Poland, France, and Switzerland. Pending final regulatory approval of the TAAT® product by Swiss authorities, the Company expects Switzerland to be the first new international market to be added for TAAT® in 2022 following the pending finalization of a distribution agreement and initial purchase order. Switzerland currently has a higher adult smoking rate than the European average at 27%²; more than double the national rate of 12.5% in the United States³.

As TAAT® is a non-tobacco product, the Company benefits from an extensive range of freedoms with respect to its ability to market through public-facing media in markets where tobacco advertisements are restricted or disallowed. In the United States, TAAT® has advertised its brand as a better alternative to tobacco cigarettes through methods such as in-store displays at the point of sale, as well as sports sponsorships (e.g., a stock car racing team, the entourage of world champion boxer Floyd Mayweather). The Company intends to strategically place German-language advertisements such as the mockup shown below as part of its launch plan in Switzerland, with French-language variations for markets in western Switzerland such as Geneva, the country’s second-ranking city by population.

TAAT® Founder Joe Deighan commented, “As the tobacco industry continues to evolve, it is a major part of our playbook to jump on opportunities to do things that tobacco companies cannot do as a way for TAAT® to gain a competitive advantage. Switzerland was already a target market for a future TAAT® launch due to its relatively high adult smoking rate of 27% and its optimal location in the centre of Europe, sharing a border with five other nations. However, with Switzerland set to put an end to tobacco advertising based on a vote for new legislation last quarter, we recognized this impending change for the timely opportunity that I believe it to be. We are working closely with a Swiss tobacco distributor who is now in the final stages of obtaining government approval for TAAT® to be sold in Switzerland, and I am excited for the next steps as we continue to build out our tobacco industry footprint.”

Sources

1 - https://www.nytimes.com/2022/02/13/world/europe/switzerland-tobacco-ad-ban.html

2 - https://www.bbc.com/news/world-europe-60333336

3 - https://www.cdc.gov/tobacco/data_statistics/fact_sheets/adult_data/cig_smoking/index.htm

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: Approval of TAAT® and Beyond Tobacco™ by relevant authorities in Switzerland, potential launch of TAAT® in Switzerland including a potential purchase order and planned advertising campaign in public spaces, anticipated impact of tobacco advertising ban in Switzerland as voted on in February 2022. 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 Global Alternatives Inc. planning to do in Switzerland?

TAAT Global Alternatives Inc. plans to launch its tobacco-free products in Switzerland, leveraging the recent ban on tobacco advertising.

What products is TAAT introducing in Switzerland?

TAAT is introducing its Original, Smooth, and Menthol products in Switzerland.

What is the current adult smoking rate in Switzerland?

The adult smoking rate in Switzerland is 27%, which is significantly higher than the U.S. rate of 12.5%.

How does the advertising ban in Switzerland affect TAAT?

The advertising ban provides TAAT with an opportunity to market its tobacco-free alternative more freely compared to traditional tobacco products.

What is the significance of the tobacco advertising ban for TAAT's market strategy?

The ban allows TAAT to gain a competitive advantage and market its products where tobacco companies cannot.