- TAAT Lifestyle & Wellness Ltd. (TAAT) receives first purchase order for overseas shipment
- Green Global Earth (GGE) placed a C$149,000 purchase order for an initial supply of TAAT™
- TAAT™ will be commercialized in both the United Kingdom and Ireland through GGE’s existing wholesale network
- A 14.1 per cent tobacco use rate among adults in the United Kingdom’s and 20 per cent in Ireland presents TAAT™ with a strong market
TAAT™ has entered into an LOI with Green Global Earth (GGE) to be the exclusive distributor of TAAT products in the United Kingdom and Ireland.
GGE placed a C$149,000 purchase order for an initial supply of TAAT™.
Through the distribution relationship between the company and GGE, TAAT™ will be commercialized in both the United Kingdom and Ireland through GGE’s existing wholesale network as an alternative to existing combustible tobacco products for smokers aged 21+.
Distribution of TAAT™ in the United Kingdom and Ireland would complement the company’s current retail distribution in Ohio and its existing e-commerce, making TAAT™ available for purchase by the majority of smokers aged 21+ across the United States.
The price point of TAAT™ compared to traditional tobacco cigarettes in the United Kingdom and Ireland could represent a competitive advantage in these markets.
Based on 2018 data from the World Health Organization, the prices of the most sold brand of cigarettes (pack of 20) in international dollars (purchasing power parity adjusted) were $13.58 and $14.95 in the United Kingdom and Ireland (respectively), compared to $6.86 in the United States.
With a 14.1 per cent tobacco use rate among the United Kingdom’s legal-aged population and approximately 20 per cent among adults in Ireland, TAAT believes there is ample opportunity to establish a position in these markets.
At the outset, TAAT™ will ship domestically manufactured inventory from the United States to fulfill the current purchase order from GGE, as well as any potential future orders from GGE to the United Kingdom or Ireland in the near term.
At a later date, GGE may avail its supply of raw materials and undertake manufacturing of TAAT™ on the company’s behalf in markets in which GGE would operate under a “licensed” production and distribution agreement.
TAAT™ Chief Executive Officer Setti Coscarella commented,
“Expansion launches in the CPG category need to be conducted passively, so as to ensure the product is optimally positioned in its new markets. Although we believe TAAT™ is generally relevant to those out of the more than one billion tobacco users worldwide who aspire to leave nicotine behind, entering a new region is a complex task based on the nuances of each market in economic and competitive terms, as well as the general attitudes towards alternatives to products such as tobacco cigarettes. We are pleased to have an accomplished and well-connected wholesaler such as GGE on our side, and it is an exciting development for us to have received our first purchase order for overseas shipment as we seek to commercialize TAAT™ internationally for the first time.”
The company has developed TAAT™, a tobacco-free and nicotine-free alternative to traditional cigarettes offered in "Original", "Smooth", and "Menthol" varieties. 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 $814 billion global tobacco industry.
TAAT Lifestyle & Wellness Ltd. (TAAT) opened trading at $4.70 per share.