Distribution Company : In May of 2022, TAAT® acquired the profitable distribution businessADCO Distributors Inc. (“ADCO”) inCanton, Ohio . ADCO’s independent retail-focused business model has grown substantially over recent years to approximately CAD$90 million in revenues. In the months following the acquisition of ADCO, the Company has reviewed its business plans and intends to emphasize new and emerging categories that have higher margins than traditional tobacco products. For instance, ADCO recently partnered with a localOhio jerky brand known as WhiteHorn Meats to distribute its product in theCentral Ohio market. TAAT® is actively looking to expand ADCO’s distribution footprint both organically and through M&A.- International: The
United Kingdom has been both a success and a struggle. On the product front, TAAT® has had three reorders from itsLondon -based distributor, with the most recent reorder being the largest. TAAT® also sponsored the “Boundary” music festival inBrighton with an attendance of approximately 20,000, and all shipped product has been sold. The Company continues to face issues with customs for the importation of TAAT®, which has been an impediment to growth in theUnited Kingdom . Although the Company forecasted the customs issues would be resolved before the end of 2022, TAAT® presently anticipates a resolution in Q1 of calendar 2023, and expects to be able to resume shipments in even higher quantities as a result of the same. TAAT® is also in advanced conversations with distributors in three other European markets where the Company believes TAAT® will begin selling in 2023. Las Vegas andSan Diego : Starting inJune 2022 the Company placed an enhanced focus on its “home” market ofLas Vegas, Nevada , as well asSan Diego, California where it has robust distribution infrastructure. As ofDecember 2022 , TAAT® products are sold in over 800 stores inLas Vegas and 500 inSan Diego , which represents approximately 40% and 30% of convenience retailers in each respective market. Within these markets, the Company invested in both radio and experiential marketing to gain awareness and trial among adult smokers. To date, the Company’s anchor chain account inLas Vegas (Speedee Mart ) has generated solid month-over-month growth of TAAT®, which now represents a meaningful share of their smokable product category sales.Texas : InSeptember 2022 , the Company expanded its focus markets to include the state ofTexas with its initial placement in all 34 Buc-ee’s locations inTexas . The iconicTexas retailer owns the world’s largest convenience store inNew Braunfels, Texas and is actively supporting the TAAT® product line with in-store promotions. In December, one of the largest cooperatives inCentral Texas , theGreater Austin Merchants Cooperative Association (“GAMA”), began to distribute TAAT®. The TAAT® rollout throughout the GAMA network (combined total of approximately 1,800 stores) is expected to take a few months to complete. The Company also has open dialogues with other major chains and cooperatives inTexas which are expected to begin selling TAAT® in 2023.- Beyond Alternatives: In Q4 2022, the Company created a new subsidiary called Beyond Alternatives. In addition to commercializing TAAT®, Beyond Alternatives will also begin to distribute other alternative products in growing categories. These new revenue streams are expected to drive short-term incremental revenue so that the Company can continue to invest in TAAT® as a category creator. The initial product will be launched at the February CHAMPS trade show in
Las Vegas in 2023. - Financials: The Company’s financial statements for Fiscal 2022 are set to be published on SEDAR (www.sedar.com) on schedule, with a deadline of
February 28, 2023 .
TAAT® Chief Executive Officer
On behalf of the Board of Directors of the Company,
TAAT® GLOBAL ALTERNATIVES INC.
“Michael Saxon”
For further information, please contact:
TAAT® Investor Relations
1-833-
investor@taatglobal.com
THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.
About TAAT® Global
TAAT® develops, manufactures, and distributes alternative products in categories such as tobacco, hemp, kratom, and other emerging CPG segments. Its flagship product is a nicotine-free/tobacco-free combustible with a patent-pending base material formulation, sold in several thousand
For more information, please visit http://taatglobal.com.
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 anticipated performance of TAAT® in the tobacco industry, in addition to the following: Anticipated near-term performance of TAAT® and its subsidiaries under the administration of CEO
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