New TAAT™ Facilities in Las Vegas to Begin Operation in August, as Preparation Tasks Continue on Schedule
LAS VEGAS and VANCOUVER, British Columbia, July 16, 2021 (GLOBE NEWSWIRE) — TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT™”) is pleased to provide updates relating to its new facilities in Las Vegas, Nevada. In a press release dated April 30, 2021, TAAT™ announced that it had finalized a lease agreement for new facilities to expand the Company’s manufacturing and warehousing capacities. Combined with the Company’s existing facility at 4730 West Post Road (8,000 square feet / 743 square metres), the new facilities will considerably increase the Company’s total operating space and can allow for the creation of new internal departments for purposes such as digital content production and event management. To preserve the Company’s inspection workflows and laboratory setups, the TAAT™ quality assurance department will remain at the West Post Road office.
With new domestic launches of TAAT™ in motion and fulfillment underway for the Company’s first international order to a distributor in the United Kingdom, this facility expansion is a proactive effort to ensure the Company has sufficient capacity to meet foreseeable demand. In just nine months on the market, TAAT™ has been placed in over 300 U.S. retail stores, and cartons of TAAT™ have been shipped to smokers aged 21+ in a total of 37 states through e-commerce sales. Although its existing facility can produce enough base material for approximately 680,000 ten-pack cartons of TAAT™ per year, the Company believes it to be prudent to increase this manufacturing bandwidth as product launches are occurring in new markets.
Since the initial announcement of this expansion, milestones and material events in preparation for beginning operations in the new facilities include the following:
All Processing Equipment Successfully Moved into New Manufacturing Facility
As of mid-July 2021, all machinery for processing Beyond Tobacco™ (e.g., mixers, shredders, conveyor belts) has been moved into the new manufacturing facility. In the coming weeks, additional machinery (including existing “finishing” equipment as well as new machines arriving from overseas vendors) will also be moved according to a timeline in which the new manufacturing facility will start operating in August 2021.
Upgraded Storage Space for Beyond Tobacco™ Base Material
In the Company’s new warehouse facility, it will be possible to store approximately 400,000 lb / 181,400 kg of the Beyond Tobacco™ base material (compared to approximately 150,000 lb / 68,000 kg at the current facility) after it is finished and awaiting shipment to a contract cigarette manufacturing partner. In addition to standard climate controls, this storage space also has humidity control functionality which can be used to keep the base material fresh, thereby extending its shelf life.
Fulfillment Station More than Triples in Size
To efficiently facilitate the fulfillment of direct-to-consumer e-commerce orders as well as wholesale purchase orders of finished TAAT™ products, the fulfillment station at the Company’s new warehouse will be over 200% larger than its current size in the West Post Road facility. The new fulfillment station will also have four loading doors at “dock height”, which can reduce pickup and drop-off times for logistics providers. The Company is also evaluating technologies and solutions which could further optimize in-house order fulfillment with this additional space.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a794b724-5bdf-4ae0-bdf2-06f5a146bfd8
The entrance doors to the Company’s new facilities now bear brand insignia to include the TAAT™ logo as well as the Beyond Nicotine™ slogan, which the Company recently began using in support of impending federal anti-nicotine regulations from the Biden Administration in the United States
Readers using news aggregation services may be unable to view the media above. Please access SEDAR or the Investor Relations section of the Company’s website for a version of this press release containing all published media.
TAAT™ Chief Executive Officer Setti Coscarella commented, “Expanding and upgrading the Company’s operating facilities after barely three calendar quarters of selling TAAT™ at retail is an excellent indicator of our progress in my opinion. At this time last year, I was still at Philip Morris International and TAAT™ was still offering ‘test’ iterations of the product to smokers aged 21+ in Nevada and California. Now that we have tobacco wholesalers in multiple markets distributing TAAT™ to more than 300 retail stores in addition to an e-commerce pipeline with clientele in 37 U.S. states, I believe it goes without saying that we could not continue operating out of the same facility if we’re looking to continue scaling our business. Everything is looking great so far, and we are excited to be making this expansion official in August, giving us the room we need to grow as an emerging player in the tobacco industry.”
On behalf of the Board of Directors of the Company,
TAAT™ GLOBAL ALTERNATIVES INC.
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT™ Investor Relations
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.
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: The successful setup, launch, and operation of the Company’s new facilities and potential corresponding effect of the same on the Company’s performance. 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.