LAS VEGAS and VANCOUVER, British Columbia, Sept. 18, 2020 (GLOBE NEWSWIRE) — TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTC: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “Taat”) is pleased to announce that after finalizing the base material formulation for Beyond Tobacco™, the first production-scale batch of base material has been shipped to the Company’s manufacturing facility to produce an inventory of commercial samples for Beyond Tobacco™, which are to be given to distribution, wholesale, and strategic partners. The formulation of Beyond Tobacco™ is distinctly characterized by a proprietary refinement method (for which the Company has recently filed a United States patent application, as announced in its September 4, 2020 press release) that causes the material to emit the scent and taste of tobacco when ignited. With a planned U.S. launch in Q4 2020, Beyond Tobacco™ is a combustible product designed to closely emulate the experience of smoking a tobacco cigarette. With the Beyond Tobacco™ base material formulation officially finalized, the Company has commenced this production run with the objective of providing Beyond Tobacco™ samples to prospective distributors and wholesalers as part of the Company’s current and future efforts to cultivate a strong early-stage retail market presence in the United States.
As of 2020, there are approximately 1.3 billion tobacco users worldwide1, many of whom seek to leave nicotine behind. In the United States, 2018 data from the CDC indicates that 55.1% of adult smokers had attempted to quit in the past year, though only 7.5% successfully quit smoking in that timeframe2. The Company’s flagship Beyond Tobacco™ product contains no tobacco or nicotine, and it anticipates current tobacco smokers could find the combustible “stick” format to be familiar and comparable to the ritual of smoking a tobacco cigarette. The user experience of Beyond Tobacco™ has been meticulously engineered to closely emulate the sensory elements of smoking legacy tobacco products, to include the scent and taste of tobacco, cigarette-style packaging, and audible crackling as the product burns. Operated under the executive leadership of ‘Big Tobacco’ veterans in strategy and commercialization, Taat seeks to capture market share in the tobacco industry by launching Beyond Tobacco™ in “Original” and “Menthol” varieties. After obtaining commercial-scale manufacturing capacity, filing a patent application for the Beyond Tobacco™ base material refinement process, and retaining a full-service investor relations and digital media agency in British Columbia, the Company continues to diligently handle all groundwork that precedes the launch of Beyond Tobacco™.
Because prospective distribution and wholesale partners will generally request client-ready samples of any new product, procuring commercial samples of Beyond Tobacco™ is an important step in carrying out negotiations with such partners. After finalizing the base material formulation for a launch-ready iteration of Beyond Tobacco™, the Company is pursuing expeditious production of these samples to maximize lead times in obtaining retail presence before or during the planned Q4 2020 product launch. A production-scale batch of the Beyond Tobacco™ base material, which is processed privately by the Company, has been sent to its manufacturing partner (whose name cannot be published under the terms of its agreement with the Company), which operates a commercial-scale manufacturing facility where it also carries out production for national and regional tobacco cigarette brands at a rate of up to one million sticks per minute. Once the commercial samples of Beyond Tobacco™ have been made, the manufacturing partner will warehouse the samples, dispatching outbound shipments as directed by Taat.
Taat CEO Setti Coscarella commented, “Getting the flavour in the base material just right is fundamental to the perception of Beyond Tobacco™, when it comes to making it an attractive product for current tobacco smokers. Because our product does not contain any nicotine or tobacco, the value proposition of offering a combustible product that is experientially similar to a tobacco cigarette relies almost completely on delivering a flavour and a scent that closely resembles actual tobacco. In the past few months, the Company has made considerable progress in attaining this similarity, which prompted our recent patent application filing for the refinement process. Using the samples of Beyond Tobacco™ that are to be made with the base material that is currently en route to our manufacturing facility, we plan to approach several leading distributors and wholesalers of tobacco products to build a robust presence of Beyond Tobacco™ in the U.S. retail market. With that market being our initial focus, I am proud to say that every component of Beyond Tobacco™ is American-grown and American-made. To date, we have received many requests for samples of Beyond Tobacco™, and I am excited to be able to provide them to our prospective partners as we get closer to our product launch.”
On behalf of the Board of Directors of the Company,
TAAT LIFESTYLE & WELLNESS LTD.
Setti Coscarella, CEO
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About Taat Lifestyle & Wellness Ltd.
Having developed Beyond Tobacco™, which contains no tobacco or nicotine, Taat’s objective is to introduce an innovative, experience-driven alternative to tobacco cigarettes for tobacco smokers who aspire to leave nicotine behind. Beyond Tobacco™, which is to be offered in “Original” and “Menthol” varieties, is designed to closely emulate every aspect of smoking a traditional cigarette. From the cigarette-style packaging and stick format, to the proprietary flavouring blend which imparts the flavour and scent of tobacco, to the draw sensation, and the amount of smoke exhaled, Beyond Tobacco™ has been meticulously engineered to enable smokers to continue enjoying the ritual of smoking, while discontinuing nicotine intake. Taat plans to launch Beyond Tobacco™ in Q4 2020 and is seeking to position itself in the USD $814 billion (2018)1 global tobacco industry to capitalize on the growing worldwide demand for alternatives to traditional cigarettes.
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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 potential launch of Beyond Tobacco™, in addition to the following: Completion of Beyond Tobacco™ sample production, potential outcomes relating to the provision of such samples to prospective distributor and wholesale partners. 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.
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Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by Taat Lifestyle & Wellness Ltd. can be found under the Company’s profile on http://sedar.com.