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Be the first with the news that moves the market- Taat Lifestyle & Wellness (TAAT) has signed a manufacturing deal for its tobacco and nicotine-free Beyond Tobacco cigarettes
- The commercial-scale North American agreement was signed with an unnamed partner that also manufactures tobacco and hemp cigarettes for a number of global and regional brands
- Taat will manufacture the base material for the cigarettes in house and ship it to the manufacturer, after which production is expected to commence at a rate of approximately 2,000 sticks per minute
- The manufacturer will also provide warehousing services along with shipping to distributors
- Taat Lifestyle & Wellness (TAAT) is currently up 5.38 per cent and is trading at C$0.98 per share
Taat Lifestyle & Wellness (TAAT) has signed a manufacturing deal for its tobacco and nicotine-free Beyond Tobacco cigarettes.
While the agreement specifies that the manufacturer’s name is not to be publicised, Taat’s partner already produces a variety of both hemp and tobacco-based products for a number of local and international brands.
With an initial one-year term, the commerical-scale North American-focused deal offers pricing terms below the industry average compared to traditional tobacco cigarette production.
Upon completion of the one-year commitment, and providing the necessary production quota is met, the terms of the agreement may be revised for further potential cost-saving measures.
Taat will manufacture the base material for the Beyond Tobacco cigarettes in-house, thereby guarding its valuable trade secrets, before shipping the material to the manufacturer.
The products are expected to be produced at a rate of approximately 2,000 sticks per minutes, after which the manufacturer will also provide warehousing services and facilitate the shipping of the Beyond Tobacco cigarettes to distributors.
Setti Coscarella, CEO of Taat Lifestyle & Wellness, noted that, in order to be competitive, establishing a capable and resourceful roster of suppliers is crucial.
“While our agreement with the manufacturer precludes me from going into too much detail, I can certainly say that I am very pleased to have them on board to manufacture Beyond Tobacco cigarettes for us.
“Aside from being able to produce at a much lower cost compared to our initial estimations, working with an established player in the cigarette production space enables us to benefit from their industry-leading standards in machinery, quality control, and efficiency,” he said.
Taat Lifestyle & Wellness (TAAT) is currently up 5.38 per cent and is trading at C$0.98 per share at 2:10pm EDT.
