Tobacco alternative manufacturer TAAT Global Alternatives (CSE:TAAT / OTC:TOBAF) is expanding its distribution footprint in the US. The company announced this week that its flagship product TAAT has gained distribution in seven new U.S. states over the past two months.
The distribution of TAAT in these new markets complements its existing presence in Ohio, as well as its e-commerce operations allowing for TAAT to be purchased by the majority of smokers aged 21+ in the United States.
TAAT has been engaged in the roll out of its alternative to tobacco in key US markets. Its core product, manufactured in Nevada, has three flavour varieties and is intended as a substitute to the addictive qualities of nicotine cigarettes. The cigarettes are intended to assist the millions of US smokers who want to give up and are being sold as an alternative to vaping products and nicotine patches.
First international launches believed imminent
TAAT said it is preparing for its first international launches in the United Kingdom and Ireland, pursuant to a CAD $149,000 purchase order from a wholesaler in London.
TAAT has been commercializing its faux tobacco product aggressively between its existing sales channels (both wholesale and B2C to smokers aged 21+) as well as contacts made at events such as trade shows to build distribution.
On August 6 it announced it had closed 68 new initial purchase orders from the trade shows at which TAAT was an exhibitor in late July 2021. Based on this success, TAAT will be exhibiting at additional trade shows in 2021, the company told investors this week.
“An unchanging fact about consumer products is that building and growing long-term market share is a marathon, not a race,” explained CEO Setti Coscarella. “From the consumer perspective, new products come and go from store shelves all the time. What the consumer does not always see is what goes on behind the scenes, which is what we have been busy with over the past several months between setting up our production infrastructure, building a wholesale distribution network, and establishing a marketing strategy to optimally position TAAT™ in front of smokers aged 21+ across the United States.”
Coscarella said the company took a relatively patient approach to introducing TAAT to Ohio, followed by Illinois and Georgia and “now that we’ve gotten the hang of what it takes to launch in new states, we have been able to expedite the process through our new distribution partners.
Listen: Podcast: with Joe Deighan, Founder and Director of Research, TAAT Global Alternatives
The strategy has enabled the company to add new distribution of TAAT in seven states over just two months, which I believe is a promising indicator with respect to our mission to become a brand known worldwide in the USD $814 billion global tobacco industry.”