The Company recently concluded its first phase of retail market testing of Taat hemp cigarettes, in which “test” versions of the product were sold in over 50 retail stores in NV and CA. In addition to feedback given by users being consistently positive, repeat purchases of Taat hemp cigarettes from the retail stores occurred frequently, leading to more than 75% of participating retail stores requesting reorders. The Company plans to begin its second phase of research which will consist of an intensive series of focus groups to gather more detailed feedback. The planned launch of Taat hemp cigarettes remains on schedule to take place in Q4 2020.
LAS VEGAS and VANCOUVER, British Columbia, June 29, 2020 (GLOBE NEWSWIRE) -- Taat Lifestyle & Wellness Ltd. (CSE:TAAT) (the “Company” or “TAAT LTD”) is pleased to announce the successful completion of the first phase of initial retail market testing for Taat hemp cigarettes, which resulted in especially positive responses from users of the product. Beginning in early May 2020, “test” versions of Taat hemp cigarettes were offered for sale at more than 50 retail locations in Nevada and Southern California with an objective of soliciting feedback from users. Over the duration of this phase, users consistently gave testimonies about Taat hemp cigarettes that reflected their satisfaction with the product as an acceptable replacement for legacy tobacco products. This feedback was corroborated by a high rate of repeat purchases, which resulted in a reorder rate of more than 75% from participating retailers whose supply of Taat hemp cigarettes sold out during this first phase.
In its June 22, 2020 press release, the Company announced that its flagship brand Taat Herb Co. was preparing to launch Taat hemp cigarettes as a better-for-you alternative to traditional tobacco products. Taat hemp cigarettes are tobacco-free and nicotine-free, and are designed to emulate traditional cigarettes by replicating experiential elements to include the “stick” format, cigarette-style packaging, the taste and scent of tobacco from a proprietary flavouring blend, and an enhanced volume of smoke exhaled. To assist users in potentially attaining a seamless transition off of tobacco cigarettes, Taat hemp cigarettes contain at least 50mg of CBD per stick, which has been shown to mitigate tobacco withdrawal symptoms and reduce dependency. To also provide the product’s potential benefits to users who wish to quit menthol cigarettes, Taat hemp cigarettes are also offered in an “Menthol” flavour in addition to an “Original” tobacco flavour.
The purpose of the first phase of retail market testing of Taat hemp cigarettes was to collect responses from initial users of the product. Feedback was sought regarding users’ acceptance of Taat hemp cigarettes as an alternative to traditional tobacco, their “smokability” in comparison to traditional cigarettes or other alternatives, and the overall presentation of the product from the perspective of an early-stage user. Responses from users consistently supported that the experience of smoking Taat hemp cigarettes was comparable to traditional tobacco cigarettes. Moreover, users demonstrated a clear understanding of the potential benefits of Taat hemp cigarettes as an alternative to smoking tobacco.
Final results of research conducted in this first testing phase are expected to be made available by mid-July 2020. Subsequently, it is planned for the Company to begin a second phase of research in which an intensive series of focus groups will be held to gather more detailed responses, which can also be segmented by standard market research criteria to provide Taat Ltd potentially useful insights that can be used in the creation of positioning strategies for Taat hemp cigarettes.
Taat Ltd Founder Joe Deighan commented,
“The first phase of testing is always the moment of truth with any new product. After years of research and development, the product’s reception by its target audience is the most informative indicator of the product’s quality, innovativeness, and relevance to the intended user base. We are ecstatic to have received such glowing responses regarding Taat hemp cigarettes as a better-for-you alternative to tobacco cigarettes, especially since such feedback was substantiated by additional purchases from the participating retailers that resulted in reorders from more than 75% of stores carrying the test product once they ran out. We believe that the results of this first phase can foreshadow similar results in the focus groups that we plan to conduct in the second phase. We look forward to holding those focus groups as early as this summer, which we hope will further contribute to our momentum leading up to our planned official launch in Q4 2020.”
About Taat Lifestyle & Wellness Ltd.
Taat Herb Co., the flagship brand of Taat Lifestyle & Wellness Ltd. (CSE:TAAT) is an early-stage life sciences company based in Las Vegas, Nevada innovating nicotine-free and tobacco-free alternatives to traditional cigarettes. With a unique proprietary blend of all-natural ingredients and meticulous engineering of the user experience, Taat hemp cigarettes are designed to emulate every aspect of legacy tobacco products with no significant difference to the user. Enhanced with CBD, a non-psychoactive derivative of hemp, Taat hemp cigarettes provide benefits that include mitigation of tobacco withdrawals, and reduction of tobacco dependency. With an expert-led go-to-market strategy, the Company’s objective is to position itself in the US $814 billion (2018)1 global tobacco industry to capitalize on the growing worldwide demand for better-for-you alternatives to traditional cigarettes.
1 British American Tobacco - The Global Market
Statement Regarding Effects of CBD on Smoking Cessation
The Beckley/Exeter research program (University of Exeter) carried out a pilot study that found after several weeks following cannabidiol ("CBD") treatment, CBD helped tobacco smokers to reduce the amount of cigarettes smoked by as much as 40%. A follow-on study is planned, which will include a brain imaging component to examine the brain activity patterns underlying the probable therapeutic effects of CBD.
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 potential launch of Taat hemp cigarettes, in addition to the following: The potential publication of results from the first phase of research described in this release, and the potential occurrence of the second phase of research described in this release. 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 and CBD 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.
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