TAAT™ Deploying Incentive Program for Chain Retailers to Bolster In-Store Conversions

by Stephanie Moyneur February 11, 2022

TAAT™ Deploying Incentive Program for Chain Retailers to Bolster In-Store Conversions

LAS VEGAS and VANCOUVER, FEBRUARY 11, 2022 - TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT™”) is pleased to announce that beginning in Q1 2022 it will offer a program for chain retailers in the United States who carry TAAT™ products through which individual stores can earn incentives for converting recipients of promotional TAAT™ samples into purchasers of a full TAAT™ pack. Tobacco retailers in chains of up to 5,000 U.S. stores are being invited by the Company to participate in this program, provided they currently carry TAAT™ products alongside legacy tobacco cigarette brands (e.g., Marlboro, Newport, Camel, etc.) and consistently maintain a robust inventory of all three TAAT™ varieties. This sample incentive program is to be initially launched in select convenience franchise locations in Ohio, West Virginia, and Pennsylvania, and is to operate concurrently with the Company’s broader in-store activation initiative for gas station chains as announced in TAAT™’s January 21, 2022 press release.

In 2022 TAAT™ is embracing its existing relationships with national and regional chains of tobacco retailers including gas stations, convenience stores, smoke shops, and liquor stores as such chains commonly have existing infrastructure for incentive programs such as the sample initiative to be deployed by the Company this quarter.

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Under the TAAT™ chain retailer sample incentive program, participating stores will be provided a countertop display for TAAT™ Twos (two-stick sample packs of TAAT™ Original, Smooth, or Menthol) with an initial supply of each variety along with support materials for tracking redemptions. When a consumer purchases a pack of tobacco cigarettes from an incumbent brand, the incentive program will activate, encouraging retailer engagement which begins with providing a complimentary sleeve of the highly anticipated TAAT™ Twos product samples. The incentive program has been in development since September of 2021 as part of a series of marketing tactics geared towards consumer education and conversion from traditional tobacco products. The incentive program includes several layers of accountability measures with auditable records. The customizable components of the incentive program can provide a scalable process for participating retailers, taking into account the range of potential disparities in technology and logistics relevant to each participating chain store brand. Incentives are to be awarded based on a conversion yield structure that can be negotiated with each retail chain to align with any existing similar programs from CPG vendors.

Chain stores carrying TAAT™ who opt to participate in the retailer incentive program will receive countertop displays for TAAT™ Twos (shown above) which are expected to play a key role in driving first-time trials of TAAT™ by consumers, as well as potential first-time purchases of a full pack of TAAT™ Original, Smooth, or Menthol.

The Company’s objective with its chain retailer sample incentive program is to “intercept” purchases of tobacco cigarettes for the purpose of generating product awareness, while also distributing complimentary samples of the TAAT™ variety that is most likely to be of interest to a current smoker based on their preferred tobacco cigarette brand. By implementing this program with chain retailers, TAAT™ anticipates that it can rapidly place TAAT™ Twos as a promotional tool to prompt trials of the product with an added incentive to purchase a full pack for the first time.

At this time, TAAT™ is accepting requests for participation in its sample incentive program from retail chains in the United States with a minimum of five stores that sell tobacco cigarettes and either currently carry TAAT™ products or will begin carrying TAAT™ products this year. Interested parties may contact hello@taatglobal.com for more information.

TAAT™ Chief Executive Officer Setti Coscarella commented, “In the tobacco industry, you cannot be shy at all when it comes to angling for long-term market share once your product has gained initial momentum. Indeed, the overall process is a marathon and not a race, which is exactly why we took a disciplined and patient approach to our launch efforts in late 2020 and early 2021. As our presence in convenience and fuel chains grows along with our global store count, we have recognized the value our chain partners can provide us in terms of strengthening category penetration through store-level sample distribution underpinned by an incentive program for turning sample recipients into purchasers of TAAT™. Based on the performance of this program, it can be adapted to additional locations within a given chain, which could be a factor in scaling our retail presence even more rapidly. The majority of current smokers in the United States do not yet know that a nicotine-free and tobacco-free alternative such as TAAT™ even exists, which is why I believe the free TAAT™ Twos samples offered with packs of leading cigarette brands can be very effective in driving awareness; particularly with the aid of an incentive program such as the one we will be launching this quarter.”

On behalf of the Board of Directors of the Company,

TAAT™ GLOBAL ALTERNATIVES INC.

“Setti Coscarella”

Setti Coscarella, CEO and Director

For further information, please contact:

TAAT™ Investor Relations

1-833-TAAT-USA (1-833-822-8872)

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 Alternatives Inc.

The Company has developed TAAT™, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in "Original", "Smooth", and "Menthol" varieties. TAAT™'s base material is Beyond Tobacco™, a proprietary blend which undergoes a patent-pending refinement technique causing its scent and taste to resemble tobacco. Under executive leadership with "Big Tobacco" pedigree, TAAT™ was launched first in the United States in Q4 2020 as the Company seeks to position itself in the $814 billion1 global tobacco industry.

For more information, please visit http://taatglobal.com.

References

1 British American Tobacco - The Global Market

Forward-Looking Statements

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