TAAT™ Entering U.K. Market with Significant Competitive Advantages

In the United Kingdom, tobacco cigarettes are sold in standard “plain packaging” which limits the ability of brands to visually distinguish their products from those of competitors. TAAT™ will be sold in the United Kingdom in colourful packaging similar to the current design found in markets in the United States, and the Company anticipates it will realize a competitive advantage based on the unique appearance of its red, blue, and green packs compared to the “drab dark brown” packs of leading tobacco cigarettes as specifically mandated under U.K. law. Moreover, after menthol tobacco cigarettes were officially banned in the United Kingdom on May 20, 2020, a market opportunity has emerged among legal-aged smokers in this market who prefer menthol, which could represent an opportunity for the Company to gain market share.

LAS VEGAS and VANCOUVER, MAY 20, 2021 – TAAT GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT”) recently announced in a press release dated April 30, 2021 that it had received a purchase order for €100,000 (approximately CAD $149,000) from a wholesaler in London, England who will be the exclusive distributor of TAAT™ in the United Kingdom and Ireland. As the Company prepares its first shipment to fulfill this order, it has developed the pack designs for each of TAAT™ Original, Smooth, and Menthol for sale at retail in the United Kingdom, where the Company believes TAAT™ packs will visually stand out when displayed alongside tobacco cigarettes which can only be sold in a uniform “plain packaging” style. 

The above representation shows how TAAT™ Smooth, Menthol, and Original would appear on a shelf next to cigarettes in plain packaging, a legal requirement for tobacco cigarettes in the United Kingdom. In May 2021 the Company developed its packaging for the U.K. market, which it anticipates could create a competitive advantage as it seeks to establish market share in the United Kingdom’s tobacco industry, which is valued at approximately £18 billion or about C$30 billion annually1.

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Packaging for all tobacco cigarettes in the United Kingdom, including leading brands such as Sterling and Mayfair (both made by a subsidiary of Japan Tobacco International), must adhere to requirements including a designated principal colour (Pantone 448C, a “drab dark brown2”), a smooth surface with no texture or embossing, and the absence of promotional images or logos. As a result, packs of a given tobacco cigarette brand or variant are generally indistinguishable from one another with the brand and variant names each allowed to appear only once on the front, top, and bottom of the pack in Helvetica font with only the first letter capitalized and a maximum font size of 14 and 10 points for the brand and variant names, respectively. 

The proprietary tobacco-free and nicotine-free formulation of TAAT™ and its Beyond Tobacco™ base material allow the Company to position TAAT™ as a non-tobacco product under different packaging regulations. The bright colours of the TAAT™ Original (red), Smooth (blue), and Menthol (green) varieties are expected to stand out among the dark brown packs of tobacco cigarettes from incumbent brands in shops across the United Kingdom, as shown in the representation below. 

The distinctive packaging of TAAT™ products stands to provide the Company yet another advantage as it seeks to introduce TAAT™ to the United Kingdom, in addition to its ability to sell at a much lower price point compared to the average tobacco cigarette in this market (one pack of the most sold brand costs $13.58 in international dollars, purchasing power parity adjusted3). Furthermore, almost exactly one year ago on May 20, 2020, a ban on menthol cigarettes was put into effect in the United Kingdom, including on capsule, click on, click & roll, crushball and dual menthol cigarettes4. This ban will not affect TAAT™ products. With the assistance of its European wholesale partner, the Company is confident in its ability to build market share for TAAT™ in the United Kingdom, where 14.1% of the legal-aged population use tobacco5.

In 2020, the tobacco market in the United Kingdom was valued at approximately £18 billion or about CAD $30 billion annually5.

“We are very excited about our impending entrance into the U.K. market and our advantageous product distinction on the shelf,” stated Setti Coscarella, Chief Executive Officer of TAAT™. “Anytime your product is visually outstanding from its competition, a lot of work is already done for you. As we continue to explore opportunities outside of the U.K., we recognize that the European Union presents a complicated regulatory network, with each member country implementing its own rules with respect to importation, packaging tariffs, and other factors. Interest in our product from legal-aged smokers in Europe has been overwhelming, and we will navigate the regulations on a country-by-country basis.”

Sources

1 – https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/bulletins/adultsmokinghabitsingreatbritain/2019 

2 – https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978513/tobacco-packaging-guidance-great-britain-april-2021.pdf 

3 – https://www.who.int/tobacco/surveillance/policy/country_profile/gbr.pdf 

4 – https://www.acs.org.uk/advice/menthol-ban 

5 – https://www.statista.com/statistics/300836/annual-expenditure-on-tobacco-in-the-united-kingdom-uk/ 

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@taatusa.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.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the anticipated performance of TAAT™ in the tobacco industry, in addition to the following: Potential outcomes from the planned introduction of TAAT™ to the United Kingdom. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.

This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.

Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by TAAT™ Global Alternatives Inc. can be found under the Company’s profile on http://sedar.com.

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