Tag: Taat Global Alternatives

Taat to Acquire Smoking Cessation App

Photo: Gilles Paire
Taat Global Alternatives plans to acquire Break Free, a smartphone application designed to provide smoking cessation strategy recommendations, from Boksburg Ventures, according to a Taat press release. Taat anticipates that Break Free could play a strategic role in the marketplace positioning of its flagship product Taat, a nicotine-free and tobacco-free alternative to tobacco cigarettes.
Break Free uses a holistic approach to ﬁrst monitor and track smoking-related habits of adult tobacco users, analyze the habits and then suggest customized changes that are speciﬁc to each adult smoker to ensure personalized care and attention.
The Break Free mobile app uses state-of-the-art technologies, including a companion diagnostics module to help adult smokers personalize and customize the use of currently available U.S. Food and Drug Administration-approved smoking cessation devices, augmented and virtual reality mental health simulations, and circadian rhythm sensors to monitor actigraphy, sleep/wake cycles and snoring.
The app has not yet been made available to consumers and remains subject to further development. Upon completion of the proposed transaction, Taat plans to complete the development of the app for use by consumers on the Android and iOS smartphone platforms by integrating additional features that are currently under patent applications with the U.S. Patent and Trademark Office.
Subject to approval by at least two-thirds of the votes cast at Boksburg’s shareholders meeting scheduled on April 10, 2023, Taat has agreed to issue to Boksburg on closing an aggregate of 17 million common shares of Taat at a deemed value of $0.3225 per consideration share and $3.6 million of working capital.
March 3, 2023
Taat Reports Third-Quarter Results

Photo: Taat Global Alternatives
Taat Global Alternatives reported revenue of CAD17.47 million ($12.93 million) and a gross profit of $567,404 for the three-month period ended July 31, 2022. Assets grew 48.77 percent to $23.38 million over the comparable 2021 quarter.
“I am very pleased with our results for FQ3 2022, as they reflect the many steps we have taken to fortify the financial landscape of the company as an integrated innovator, manufacturer and distributor of tobacco alternatives, legacy convenience offerings and other emerging product categories,” said Taat CEO Michael Saxon in a statement.
“We continue to strategically commercialize Taat as a category creator, which is now sold in thousands of stores between our U.S. and U.K. footprints, including placements in major convenience and gas chains.”
September 22, 2022
Taat Shares 2022-2023 Financial Outlook

Photo: Taat Global Alternatives
Following its recent acquisition of HLND Holdings, Taat Global Alternatives anticipates generating approximately CAD88 million ($68.31 million) in sales between June 1, 2022, and May 31, 2023.
Repeat orders of Taat, which comprised over 54 percent of the company’s gross revenue in the second quarter of 2022, are expected to continue at a steady pace as the company services its existing accounts while capturing new market share.
Anticipated revenues for the company’s fiscal year ending Oct. 31, 2022, are CAD92 million. Taat projects a loss on operations excluding non-cash items of CAD1.9 million. The company anticipates continued quarterly losses through the remainder of calendar 2022 as it invests heavily in brand-building, distribution and further development of its nationwide sales network.
To exploit its recently acquired distribution capabilities, the company plans to expand the scope of its offerings beyond Taat Original, Smooth and Menthol, with the objective of also becoming a global player in nontraditional smokable and non-smokable products.
Shifting its business model from being “product-centric” to “brand-centric,” the company expects to benefit considerably from its enhanced management capabilities between ADCO executive team members as well as the addition of 20-year global tobacco industry veteran Michael Saxon as CEO of Taat.
“In the approximately 18 months since Taat was first launched in the United States, we have established a solid foundation through strong execution of our priorities as well as continued attention to research and development,” said Taat Founder Joe Deighan in a statement. “The advanced formulation of Beyond Tobacco known as V3 has proven exceptionally popular among adult smokers and we have proactively taken steps to replace inventory of Taat made with previous iterations, thus ensuring that V3 is as widely available as possible.
“Our acquisition of ADCO provides us more than just distribution bandwidth, which is to say that we can obtain priceless feedback and various types of insights (whether qualitative or quantitative) to continuously evaluate the performance of a given product on the market and shape our business decisions accordingly to drive sell-through and long-term brand equity.
“Perhaps most exciting, we are branching out into segments that complement our core offerings, such as Taat heat-not-burn as well as a zero-hemp formulation of Beyond Tobacco that can enable us to commercialize Taat more broadly at a global level. We anticipate great outcomes in the rest of 2022 and throughout 2023 and are keen to continue with actively commercializing Taat as a better alternative to legacy tobacco products.”
July 4, 2022
Taat Quarterly Revenue up Nearly 10 Percent

Photo: Taat Global Alternatives
Taat Global Alternatives reported gross revenue of CAD515,464 ($399,049) for the second quarter of fiscal 2022, up 9.7 percent over that reported in the comparable 2021 quarter. More than 54 percent of its gross quarter revenues came from repeat orders during the quarter.
The company’s cost of goods sold dropped, reflecting an improvement in gross margin from 28.09 percent in the first quarter of 2022 to 46.1 percent in second quarter of 2022
The company’s flagship product, a nicotine-free and tobacco-free cigarette called Taat, is currently sold in over 2,700 U.S. stores, which include locations of major national and global chains in the convenience and gas categories.
As a greater quantity of Taat in retail circulation is now manufactured with the Version III formulation of its patent-pending Beyond Tobacco base material, the company and its wholesale/retail partners have reported improvements to the conversion rates of adult smokers who choose Taat instead of their preferred brand of tobacco cigarettes.
Earlier this year, Taat entered into an agreement to acquire ADCO Distributors, an Ohio tobacco distributor. The Taat brand name became a registered trademark in eight global markets including the the United States and the European Union.
“Our fiscal Q2 2022 was a pivotal timeframe for the company as we made two key transitions,” said Taat Founder Joe Deighan in a statement. “The first was the acquisition of ADCO, which added integrated distribution to our business model in addition to a steady revenue stream of over CAD$87 million (based on 2021 financial results) to complement our existing sales pipeline of Taat throughout the United States.
“The second was rotating Taat inventory with our wholesale and retail partners to ensure Taat made with the V3 formulation of Beyond Tobacco is as available as possible across our nationwide footprint. It’s tricky to articulate just how significant V3 is compared to our previous formulations.
“Consumer feedback from adult smokers who have tried V3 reflects validation of our mission to create an experience that is truly better than their preferred tobacco cigarette brand. This has done wonders for our conversion rates at the point of sale, which is why we elected to take the plunge to voluntarily replace existing inventory with product made using V3.
“With the added distribution bandwidth resulting from our acquisition of ADCO, we are excited to be carrying on as an integrated player in the $812 billion global tobacco category, and are thankful to our loyal base of investors for their continued support.”
June 30, 2022
Taat Appoints Michael Saxon as CEO

Michael Saxon (Photo: Taat Global Alternatives)
Taat Global Alternatives has appointed tobacco industry veteran Michael Saxon as CEO and member of its board of directors. Former CEO Setti Coscarella will remain available to the company as an advisor. Saxon has been on the Taat Advisory Board since late 2020.
Saxon is an accomplished consumer products executive with more than 25 years of experience growing Fortune 100 businesses in the United States, Europe and Asia. He has influenced government policy and led business units while operating in different regulatory systems.
Saxon served in various positions for over 20 years with Altria Group and Philip Morris International. Most recently, he helped create Trolley Ventures, a Richmond, Virginia, USA, venture capital firm investing in early-stage start-ups.
“I’m excited to be joining the Taat team,” said Saxon in a statement. “This is an exhilarating time in our industry, and Taat is positioned to be a disruptor. With about 18 months of actual market and consumer feedback, I believe Taat is in an ideal position to accelerate its commercialization efforts.
“This will include focusing our efforts on the large and profitable USA market, while our product development team leverages their capabilities to develop other Beyond Tobacco products that can further disrupt the USA and other international markets. There is a tremendous market opportunity for the company, and I am eager to launch new initiatives to accelerate adult consumer adoption of Taat.”
“It has been my pleasure to lead Taat through our initial years and through the pandemic. At this point, I am satisfied the company is in an excellent position to hand direction over to Mr. Saxon, and I am pleased to be continuing my participation as an Advisor,” said Coscarella.
June 21, 2022
Taat and E1011 Labs Partner in HnB Tech
Photo: Taat Global Alternatives
Taat Global Alternatives has joined E1011 Labs’ Pilot Partnership Program (P3), an initiative by the California-based heat-not-burn innovator to leverage the capabilities and resources of third-party firms to advance its efforts in the tobacco and tobacco-adjacent categories.
In a press release dated May 17, 2022, Taat announced the release of its sales materials for a heat-not-burn offering made in collaboration with E1011 Labs using the company’s proprietary and patent-pending base material Beyond Tobacco, which contains no tobacco or nicotine.
In its June 14, 2022 press release, E1011 Labs announced the second edition of its patented Elon combustion-free device using precision heating technology with unique features including a touchless “pause” function with which a user can suspend a session by blowing into a circular sensor.
E1011 Labs stated the wide range of applications for heat-not-burn technology includes use cases in the pharmaceutical, cannabis and tobacco categories. As the very first participant in E1011 Labs’ P3 ecosystem, Taat will work closely with E1011 Labs to commercialize a novel heat-not-burn option with no tobacco or nicotine.
“E1011 Labs is proving to be a very strong partner for us, and we are honored to be the first in their P3 program for collaboration to advance their initiatives in the heat-not-burn space,” said Taat founder Joe Deighan in a statement.
“Our primary focus is on developing, manufacturing and commercializing our flagship combustible product, which is why E1011 Labs’ reach, R&D bandwidth and marketing capabilities are invaluable to us as an upcoming entrant to the heat-not-burn space. We are thankful to E1011 Labs’ management for their confidence in us, and we are very excited to be working together for our respective pursuits in the $812 billion global tobacco category.”
June 20, 2022
Taat Adds Southern California Locations

Photo: Taat Global Alternatives
Taat Original, Smooth and Menthol are now sold in over 100 franchised stores in Southern California belonging to a major global convenience chain, an increase of more than 80 stores in eight weeks following an initial placement in 23 stores, the company announced in a press release.
Taat established dialogues with the owners of these franchises through an independent association of franchise owners in Southern California who are part of the convenience chain’s network of over 9,300 stores in the United States and more than 70,000 stores worldwide. Approximately 35 percent of the initial group of franchised stores carrying Taat have already placed reorders.
The company is currently planning to begin initiatives in Southern California to promote Taat Menthol in light of an upcoming ban of flavored tobacco products in Los Angeles set to begin on Jan. 1, 2023. On Wednesday, June 1, 2022, the Los Angeles City Council unanimously voted to ban the sale of flavored tobacco products, such as menthol tobacco cigarettes. Menthol tobacco cigarettes have proven to be exceptionally popular in Los Angeles, with 94.5 percent of tobacco retailers carrying products in this segment and 31.2 percent displaying menthol cigarette price promotions.
June 8, 2022
Taat Preparing to Launch in Switzerland
Taat Global Alternatives is preparing to introduce its tobacco-free cigarettes in Switzerland
In a press note, the company announced that it is working with a tobacco distributor with a presence in Zurich and Zug to coordinate a near-term launch of Taat Original, Smooth and Menthol in Switzerland with a primary objective of capitalizing on recent changes to Switzerland’s market landscape causing tobacco brands to be prohibited from advertising in public places.
Although tobacco advertising has long been banned in most Western markets, Switzerland was among the last to allow tobacco product advertisements in public spaces (e.g., on billboards, in movie theaters and at events such as music festivals). On Feb. 13, 2022, voters in Switzerland overwhelmingly approved legislation forbidding tobacco companies from advertising in public spaces.
Taat Global Alternatives has been exploring several launch opportunities throughout Europe, particularly after finalizing the advanced formulation of its Beyond Tobacco product using reconstituted material.
Taat says its advanced Beyond Tobacco formulation yielded excellent feedback from tobacco wholesalers in markets to include Germany, Poland, France and Switzerland. Pending final regulatory approval of the Taat product by Swiss authorities, the company expects Switzerland to be the first new international market to be added for Taat in 2022 following the pending finalization of a distribution agreement and initial purchase order. Switzerland currently has a higher adult smoking rate than the European average at 27 percent, more than double the national rate of 12.5 percent in the United States.
Because Taat’s offerings contains no tobacco, the company expects to enjoy a comparatively high degree of freedom to market the products in Switzerland.
In the United States, Taat has advertised its brand as a better alternative to tobacco cigarettes through methods such as in-store displays at the point of sale as well as sports sponsorships (e.g., a stock car racing team, the entourage of world champion boxer Floyd Mayweather). The company intends to strategically place German-language advertisements as part of its launch plan in Switzerland, with French-language variations for markets in western Switzerland such as Geneva, the country’s second-ranking city by population.
“As the tobacco industry continues to evolve, it is a major part of our playbook to jump on opportunities to do things that tobacco companies cannot do as a way for Taat to gain a competitive advantage. Switzerland was already a target market for a future Taat launch due to its relatively high adult smoking rate of 27 percent and its optimal location in the center of Europe, sharing a border with five other nations.
“However, with Switzerland set to put an end to tobacco advertising based on a vote for new legislation last quarter, we recognized this impending change for the timely opportunity that I believe it to be. We are working closely with a Swiss tobacco distributor who is now in the final stages of obtaining government approval for Taat to be sold in Switzerland, and I am excited for the next steps as we continue to build out our tobacco industry footprint.”
May 9, 2022
Taat to Develop HNB Product with Shunho

Photo: Taat Global Alternatives
Taat Global Alternatives has signed a letter of intent with a U.S. subsidiary of Shanghai Shunho New Materials Technology Co. to undertake development work for a white-labelled heat-not-burn device as well as heatable sticks containing Taat’s proprietary tobacco-free and nicotine-free Beyond Tobacco material in all three flavors (original, smooth, and menthol).
As heat-not-burn has proven to retain users exceptionally well compared to other tobacco cigarette alternatives, Taat has identified the opportunity to build upon its existing international market share in the tobacco industry by planning an expansion into the heat-not-burn category with a tobacco-free and nicotine-free offering that would be among the first of its kind in the United States.
In addition to procuring heatable Taat sticks made using the company’s Beyond Tobacco material, Shunho’s U.S. subsidiary is to supply a proprietary heat-not-burn device on a “white-label” basis, which is to be commercialized in the United States under the Taat brand name. Uniquely, this device will offer reverse compatibility with heated tobacco sticks offered by the company’s competitors, as well as the Taat original, smooth, and menthol heatable sticks.
Headquartered in Shanghai, Shunho is a renowned tobacco ancillary service company that has worked closely with international tobacco companies. Under Shunho, there is a portfolio of firms that are currently developing next-generation electronic cigarette and vaporizing products. Taat will be the first foreign third-party with whom a Shunho subsidiary has partnered for white-label production of heat-not-burn products. Additionally, distribution services will be provided for the Taat heat-not-burn offerings through various in-house and third-party e-commerce channels in the United States.
“The reason we chose to pursue the heat-not-burn segment is because it is the most ‘sticky’ option out of all commercially available alternatives to cigarettes,” said Taat CEO Setti Coscarella in a statement. “The tobacco industry has invested heavily in cultivating a user base for heat-not-burn to the point that it may even replace major brands of tobacco cigarettes altogether in certain markets.
“We are excited to be leveraging innovative technologies to create a unique nicotine-free and tobacco-free experience using heat-not-burn for consumers who currently use and prefer this method. Because the Taat heat-not-burn device will work with Taat sticks as well as certain competitors’ heatable tobacco sticks, we believe this strategy authentically embodies our values as a company by providing consumers the choice and flexibility they deserve to have.”
February 21, 2022
Taat Reports Increased Loss on Record Revenue

Photo: Taat Global Alternatives
Taat Global Alternatives reported a net loss of CAD7.74 million ($6.15 million) on sales of CAD1.31 million in the third quarter of 2021. In the comparable period of 2020, the company registered a loss of CAD3.75 million on sales of CAD63,481. Gross revenue increased by 1,956 percent from the same period in the prior year.
The company attributes the increase in net loss to increased marketing efforts relating to the advertising of its product in sporting events.
Throughout the third quarter of 2021, the company continued the rollout of its flagship product, Taat, in the United States as a nicotine-free and tobacco-free alternative to tobacco cigarettes. Based on early-stage success at retail in Ohio and through e-commerce across the United States, the popularity of Taat continued to grow among smokers as well as retailers of tobacco products and their respective wholesale/distribution partners, according to Taat Global Alternatives.
Our growth has accelerated this quarter as we continued to build the popularity of Taat among smokers aged 21-plus,” said Taat CEO Setti Coscarella in a statement.
“We have undertaken aggressive strategies to market Taat in this consumer segment in order to sustain and grow interest in the United States by continuing to add stores to expand our sales pipeline. Establishing a reputable and well-known brand comes with the long-term benefit of laying the groundwork to introduce Taat to new global markets.”
During the final week of September 2021, the first overseas shipment of Taat arrived in London for distribution in the United Kingdom and Ireland. Management of Taat anticipates that the existing brand presence will launch the commercialization of Taat in these new markets as the company continues to grow its sales footprint in the United States.
October 5, 2021