TAAT Lifestyle & Wellness (CSE:TAAT/FRA:2TP2) is moving up a gear again this week. The manufacturer of an alternative to tobacco, a non-nicotine cigarette which is designed to smell and taste like tobacco, has been selling into the state of Ohio since the start of the year. At this stage the focus has been very much on traditional retail outlets for cigarettes, but the launch of the e-commerce site could be a real game changer.
The launch of the e-commerce site has the potential to be a real game changer for TAAT, as it will allow smokers aged 21+ based anywhere in the US to order the cigarettes. All three variants of Beyond Tobacco – Original, Smooth and Menthol – will be available. It should be emphasised that the cigarettes are designed for existing smokers – of which there are millions in the USA alone – who are trying to kick the habit and wean themselves off nicotine.
Moreover, online sales of TAAT will run concurrently with a phased nationwide retail rollout to be undertaken by Crossmark (who directly services over 100,000 convenience stores across the United States), which can allow for these initiatives to complement each other and maximise their collective value.
Listen to our podcast with TAAT Lifestyle & Wellness CEO Setti Coscarella
Online launch has been strategically timed
TAAT says it has strategically timed the launch of the e-commerce portal based on predicted demand for the product outside of Ohio, as well as robust inventory levels of TAAT and its base material as it continues to increase its production capacity. TAAT believes that by launching the e-commerce portal on Wednesday, it could capitalise on recent shifts in consumer behaviour caused by the COVID-19 pandemic, which have led to more routine purchases being made online as opposed to in-store.
Announcing the launch of the e-commerce site, Setti Coscarella, CEO of TAAT, said: “Selling TAAT online can create a number of advantages for us in the USD $814 billion tobacco industry. Foremost, we will be able to benefit from an unprecedented market reach as soon as the online store launches, as opposed to having to set up distribution from scratch in each and every new market. Second, the online sales channel can provide us a much greater degree of insight into the tendencies and preferences of smokers aged 21+ who purchase TAAT directly from us.”
Heavy sales volumes anticipated
TAAT is expecting some very heavy selling volumes this week – when it originally launched a tester site to enable smokers to request free samples, this was crashed due to the high demand. The new site is much more robust, but even so, TAAT is expecting to see some heavy selling through it. Coscarella says this opens up a new distribution channel for TAAT, with some very favourable profit margins for the company.
Shares in TAAT have had a great winter – the stock was trading in Canada at under C$1 in September; it has since risen the key $4 resistance level which it challenged in October and again in November. The latest upsurge in TAAT stock came when it broke off $2.67 in late January; it is now just south of $5.
The Armchair Trader started following TAAT at $1.26 on 23 September. The shares are now up +287.3% at time of writing.