As part of its acquisition of ADCO, a major Ohio tobacco distributor, TAAT® now owns three tobacco outlets in north-central Ohio through which the Company plans to undertake ongoing consumer research for the purpose of optimizing its retailing tactics in stores carrying TAAT® products. These research initiatives can also be adapted to other stores in ADCO's distribution network across the state of Ohio as well as other stores in TAAT®'s nationwide portfolio of over 2,700 U.S. retailers of its products.
LAS VEGAS and VANCOUVER, British Columbia, May 27, 2022 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the "Company" or "TAAT®") is pleased to announce that the Company will integrate ongoing consumer research with adult smokers into the three tobacco outlets operated by ADCO Distributors, Inc. ("ADCO"), a major tobacco distributor in Ohio who was acquired by TAAT® as announced in a press release dated May 20, 2022. The three north-central Ohio stores carry a standard range of tobacco products including popular brands of cigarettes (e.g., Marlboro, Newport, Camel) in addition to all three TAAT® varieties. With the direct control TAAT® now has over the management of these three stores, the Company plans to launch store-level initiatives to capture feedback from adult smokers in various situations (e.g., being offered TAAT® in addition to a requested legacy tobacco product). TAAT® believes this approach to consumer research could be far more insightful and cost-effective compared to retaining a third-party service provider.
Although the Company previously commissioned consumer research of adult smokers to evaluate their perceptions of TAAT® both in concept and as an actual product (as detailed in a press release dated April 14, 2021), the novel approach of conducting passive studies in-store on a firsthand basis is expected to capture a level of detail that is unprecedented in the tobacco or consumer packaged goods ("CPG") categories. Given the routine nature of tobacco cigarette purchases by adult smokers who already have a specific brand preference, there are fairly limited opportunities to observe the actual transaction process as it occurs or to interject with recommendations to also purchase alternative products such as TAAT®. The Company therefore plans to leverage the unique research capabilities afforded by having in-house tobacco outlets to further optimize its retailing strategies in the tobacco category.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3b636ec6-6534-4d7a-bbb2-ec4b8d6035b2
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TAAT® Founder Joe Deighan commented, "Most brands have very little visibility into how their product performs at the point of sale, especially in relation to products from competitors. Although some insights can be obtained at a macro level through metrics such as scan records and certain quantitative data points, there is no substitute for being able to observe your target customers firsthand as they go about contemplating or making a purchase. Now that TAAT® owns three tobacco outlets in Ohio, we are able to roll out tailored in-store research initiatives to help us better understand how adult smokers react when they are offered TAAT®. By actively comprehending what factors might contribute to any potential objections or hesitation to trying TAAT®, we are able to fine-tune our retailing strategies to overcome some of those pain points with an objective of bolstering our conversion rates. We are very excited about launching these in-store research programs which I believe could be very impactful for commercializing TAAT® as a better and nicotine-free alternative to tobacco cigarettes."
On behalf of the Board of Directors of the Company,
TAAT® GLOBAL ALTERNATIVES INC.
Joe Deighan, COO and Director
For further information, please contact:
TAAT® Investor Relations
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About TAAT® Global Alternatives Inc.
TAAT® develops, manufactures, and distributes alternative products in categories to include tobacco, hemp, kratom, and other emerging segments of the CPG industry. Its flagship product is a nicotine-free, tobacco-free cigarette with a patent-pending base material formulation, sold in over 2,700 U.S. stores. With over CAD $80 million in overall net revenue in 2021, TAAT®'s facilities include a manufacturing plant in Nevada, as well as a distribution centre and multiple convenience stores in Ohio.
For more information, please visit http://taatglobal.com.
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: Successful launch of integrated in-store consumer research in the three tobacco outlets owned by TAAT® following the Company's acquisition of ADCO, and potential outcomes from such research. 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; (iii) changes to the regulatory landscape applicable to the Company's business; and (iv) 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® Global Alternatives Inc. can be found under the Company's profile on http://sedar.com.
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