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Home » News » Equities » TAAT Global Alternatives announces new distribution deals, record sales

Alternative tobacco manufacturer TAAT Global Alternatives (CSE:TAAT/OTCQX:TOBAF)  is going great guns as it continues to expand its distribution network on both sides of the Atlantic. A popular stock with Armchair Trader readers, TAAT set out to navigate a third way between traditional nicotine tobacco products and vaping. It has already seen incredible take up in the US market, where it started in Ohio.

TAAT announced at the end of last week it was adding a further 350 stockists in Virginia, where it already has a considerable presence. TAAT said that by working with a national distributor, the company had secured guaranteed counter top placement of TAAT displays near point of sale in each store.

How fast has TAAT grown its US distribution?

In approximately one year, TAAT has scaled its footprint from a single contained “test market” area of northern Ohio to a nationwide presence in over two dozen states, as well as US territories to include Puerto Rico and Guam. TAAT has leveraged existing demand for its Beyond Tobacco product from smokers aged 21+ by proactively forming relationships with wholesalers who service common retailers of tobacco products such as liquor and convenience stores.

As distributors of TAAT continue to receive repeat orders from their accounts, the company has undertaken strategic regional efforts to capitalise on growing momentum. Following the addition of these 350 new stores in Virginia, it says it is seeking to further expand its base of retailers on the east coast of the United States, complementing its strong existing presence in the state of Georgia.

Reduced lead times

“Now that we have had the opportunity to benefit from observations made during our launches of TAAT in several markets across the United States, we have managed to reduce our lead times with respect to coordinating and executing launches with new distributors,” explained TAAT’s CEO Setti Coscarella. “TAAT has been sold in Ohio for nearly one year, which has enabled us to passively build our footprint in nearby states through organic growth.”

Tobacco industry press also reported last week that TAAT has clinched a deal with the Par Mar stores network which will also see its products sold in a network of stores in not only West Virginia but also Ohio and Pennsylvania. This deal was facilitated by an agreement with wholesale distributor H.T. Hackney. It will see Beyond Tobacco sold in convenience stories in gas stations in those states, including those under the Amoco, BP and Sunoco banners.

TAAT reported that the deal had seen an initial order of 1000 cartons. It marks the brand’s first entry into the market in West Virginia.

Zero nicotine proprietary cigarettes

TAAT uses a proprietary zero nicotine substance in its cigarettes which is not addictive but is designed to mimic the taste and smell of real tobacco. It is targeting smokers over the age of 21 who are trying to wean themselves off nicotine tobacco.

TAAT says it has recorded its best-ever month in November 2021 with respect to sales of TAAT in the United States since its first retail launch in December 2020. TAAT has realised gross revenues of approximately USD $460,000 (approximately CAD $585,000) in the calendar month of November 2021 from sales of TAAT consisting of multiple pallets sold each week, while achieving a gross margin of approximately 60%.

In the same period, TAAT added five new US distributors and manufactured over 27.7% more cartons of TAAT compared to its production volume in October 2021.

Related

This article is not investment advice. Investors should do their own research or consult a professional advisor.

Stuart Fieldhouse Editor

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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