TAAT® Prepares to Capitalize on Recently Announced Plans for a New U.S. Nicotine Rule

On June 21, 2022, the FDA announced plans for a proposed rule that would establish a maximum level of nicotine in cigarettes sold in the United States. With an established patent-pending nicotine-free offering that provides an experience and sensation similar to smoking a standard tobacco cigarette, TAAT® is preparing to capitalize on this anticipated shift in the tobacco category in the United States, which is valued at approximately USD $80 billion1.

LAS VEGAS and VANCOUVER, JUNE 22, 2022 - TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) announces that it is taking proactive steps to capitalize on a rule which the Food and Drug Administration (“FDA”) in the United States announced plans to propose, which would establish a maximum level of nicotine in cigarettes and other combustible tobacco products (announced by the FDA on June 21, 20221). In the FDA’s announcement, the agency described the role of nicotine as an attribute of tobacco products that contributes to the addictiveness of cigarettes and that it is the “​​main driver of sustained use of these products [cigarettes]2”. In Q4 2020, TAAT® launched its nicotine-free and tobacco-free alternative to tobacco cigarettes in Ohio, and rapidly scaled its market position based on the product’s novel value proposition as an option for adult smokers to forego nicotine while continuing to enjoy a substantially similar “ritual” of lighting up and smoking a combustible product. As of this writing, TAAT® is sold in over 2,700 U.S. retailers including independent shops and chain stores under national banners.

Further analysis of this announcement is covered in an article in yesterday’s edition of the Wall Street Journal: https://www.wsj.com/articles/biden-administration-targets-removal-of-most-nicotine-from-cigarettes-11655842130

An anticipated outcome from the proposed rule for which the FDA announced its plans is that tobacco cigarettes in the United States would contain lower levels of nicotine. Because this would undoubtedly require the product formulation to be altered for U.S. versions of legacy tobacco products (e.g., Marlboro, Newport, Camel), it is possible that adult smokers in the United States may pursue alternatives to their preferred brands if the new formulation does not match their established tastes as a result of lower nicotine levels. The Beyond Tobacco™ base material of TAAT® has been widely regarded by adult smokers as being better than actual tobacco with “standard” nicotine content. Based on this similarity despite containing no nicotine, the Company expects TAAT® could prove to be even more attractive to U.S. adult smokers in light of the FDA’s recently announced rule that it plans to propose, seeking to “cap” nicotine levels on tobacco cigarettes sold in the United States.

A U.S. patent is currently pending for the nicotine-free and tobacco-free Beyond Tobacco™ formulation, which is used to make TAAT® products.

In an announcement dated June 21, 2022, the U.S. Food and Drug Administration announced its plans for a proposed rule to establish a maximum level of nicotine in tobacco cigarettes sold in the United States. The Company anticipates that such a rule could prove advantageous for its flagship product TAAT®, which is a nicotine-free and tobacco-free alternative to tobacco cigarettes.

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TAAT® Founder Joe Deighan commented, “As a former smoker of tobacco cigarettes, I know that nicotine is the enemy. It is clear that the FDA is recognizing this, based on its plans to propose a rule to cap the amount of nicotine allowed in tobacco cigarettes sold in the United States. I expect this to cause a considerable shift in the tobacco category in the U.S., which we could capitalize on with our established offering of a nicotine-free alternative that feels substantially similar to a regular cigarette with standard levels of nicotine. We are continuing to commercialize TAAT® to build upon our existing footprint of 2,700 U.S. stores, and will be taking proactive steps to take advantage of a new rule such as this if it goes into effect.”


1 - https://www.nytimes.com/2022/06/21/health/fda-nicotine-cigarettes.html

2 - https://www.fda.gov/news-events/press-announcements/fda-announces-plans-proposed-rule-reduce-addictiveness-cigarettes-and-other-combusted-tobacco

On behalf of the Board of Directors of the Company,


 "Joe Deighan”

Joe Deighan, COO and Director

For further information, please contact:

TAAT® Investor Relations

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



About TAAT® Global Alternatives Inc.

TAAT® develops, manufactures, and distributes alternative products in categories to include tobacco, hemp, kratom, and other emerging segments of the CPG industry. Its flagship product is a nicotine-free, tobacco-free cigarette with a patent-pending base material formulation, sold in over 2,700 U.S. stores. With over CAD $80 million in overall net revenue in 2021, TAAT®’s facilities include a manufacturing plant in Nevada, as well as a distribution centre and multiple convenience stores in Ohio.

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

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