TAAT’s Beyond Tobacco Cigarette Tries To Become The Next Big CPG Reinvention

DALLAS, TX / ACCESSWIRE / February 11, 2021 /Imperium Group Shazir mucklai had a conversation with TAAT last week.

In a world where reinvented consumer packaged goods (CPG) of products perceived as unhealthy or harmful to the environment are all the rage, TAAT Lifestyle and well-being (CNSX: TAAT) (OTCQB: TOBAF) is trying to forge its own niche. By introducing a hemp-based substitute that mimics the experience of a traditional tobacco cigarette, the company hopes to steal market share from Big Tobacco, as well as increase sales organically.

TAAT cigarettes are formulated from a house blend of hemp containing CBD called Beyond tobacco™. Hemp is blended with patented ingredients and refined to mimic the experience of a conventional tobacco cigarette, without the addictive effects of nicotine. Additionally, some users report experiencing a calming effect after using the product, potentially due to the cannabidiol (CBD) content inherent in its hemp base.

Given how the reimagined products in CPG’s ancillary categories have achieved strong consumer adoption, TAAT seeks to replicate a similar path to sustainability. For example, the vertical branch of the tobacco industry, Beer Distillers, has succeeded in offering drinks with little or no alcohol.

Last year, The Conference Board of Canada Brew benefits report indicates that alcohol-free beer represents 1.2% of total beer sales-increased by more than 50% between 2013 and 2018. Globally, Statista reports that in 2020, the global market for non-alcoholic beer was valued at around US $ 18 billion and is expected to grow at a CAGR of 7.5% (compound annual growth rate) by 2024, to reach a value of approximately $ 25 billion.

While sales of non-alcoholic beer represent only a fraction of total brewers’ revenues, if TAAT can replicate similar market penetration in the tobacco sector, a viable investment thesis can take root.

Consider that the total cigarette market in the United States is a $ 76 billion annual industry, according to Cowen research analyst, Vivien Azer. If TAAT can possibly tap into half a percent from the existing US market, the company could potentially generate gross sales of $ 380 million. TAAT market capitalization as of February 5, 2021: $ 351.54 million, less than times current revenue.

Now integrate the possibility for a market penetration similar to that of non-alcoholic beer sales (1.2%), international expansion and organic growth in the non-tobacco consumer segment, such sales ambitions do not seem so far-fetched. After all, TAAT does not have to completely replace the consumption of tobacco-based cigarettes, but rather to act as an additional or complementary alternative.

Building a multi-million dollar sales pipeline won’t happen overnight. The first shipment of TAAT ready for company distribution Beyond tobacco™ Cigarettes didn’t start arriving in wholesalers’ warehouses until last November. A prolonged marketing campaign for product recognition is needed to build recognition along the sales channel.

But for a fast-growing company with expected healthy margins and a reasonable market penetration outlook, the current valuation may be appealing to forward-looking investors with speculative capital to spare.

TAAT Partners with Leading CPG Sales Agency to Accelerate U.S. Distribution
February 2, TAAT announced a transformative deal which he hopes will take sales distribution to the next level.

The company has engaged the representation of CROSSMARK, Inc., a Tier 1 CPG agency with which serves retail channels in North America and Canada. TAAT intends to leverage CROSSMARK’s existing relationships with more than 100,000 convenience retailers to expand the availability of TAAT products in Ohio, and potentially, across the United States.

In addition to providing wholesale and retail head office registration support, CROSSMARK deploys multi-faceted support throughout the sales chain, which includes field execution strategies, product adoption retail, merchandising and product filling support. This relationship will allow TAAT to grow its sales channel faster than building its own sales team from scratch.

Additionally, CROSSMARK has experience serving the tobacco industry directly. As CEO of TAAT, Setti Coscarella, himself a former Senior Strategist, Reduced Risk Products at Philip Morris International-the dish :

One only has to look at the results CROSSMARK has achieved in marketing another brand of tobacco across the United States to know that they have both the experience and the know-how to launch a product to an audience of smokers. of legal age, which could help the Company meet its targets for the TAAT ™ product launch.

It remains to be seen whether TAAT can achieve its modest goal of capturing a small fraction of the US and foreign tobacco market. The chessboard is being set up, even though the game has only just started. But given the success of parallel GPC reinventions such as non-alcoholic beer and Beyond the meat, TAAT offers an intriguing prospective investment thesis if it is able to steal market share from Big Tobacco and grow organically over time.

Media contact / journalist:
Shazir mucklai
Imperial Group
[email protected]

THE SOURCE: TAAT Lifestyle and well-being

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