Menthol Variety of Beyond Tobacco to Enter the Global Market as an Alternative to Traditional Menthol Cigarettes

Menthol cigarettes represent US $80 billion out of the US $814 billion global tobacco market, and a 36% share of the U.S. tobacco market alone. With menthol cigarette bans passed in jurisdictions to include Brazil, Canada, and the European Union, the Company has identified unmet demand that could continue to persist as more jurisdictions follow suit. Taat Beyond Tobacco cigarettes are to be offered in a menthol variety, which can appeal to menthol cigarette smokers. With a near-term planned product launch on track for Q4 2020, TAAT LTD believes Taat Beyond Tobacco cigarettes are well-positioned to capitalize on current and emerging trends relating to menthol cigarettes.

LAS VEGAS and VANCOUVER, British Columbia, July 03, 2020 (GLOBE NEWSWIRE) -- TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (FRANKFURT: 2TP2) (the “Company” or “TAAT LTD”) has identified a significant opportunity to compete in the menthol cigarettes category of the global tobacco market with its menthol variety of Taat Beyond Tobacco cigarettes. At a global level, the menthol cigarette category was valued by Grand View Research at USD $80 billion in 2018, with a predicted compounded annual growth rate of 3.1% between 2019 and 2025¹. Despite this projected growth, the Company believes that there is significant unmet demand which can potentially continue to be unmet as several government bodies worldwide have banned or have sought to ban menthol cigarettes, which began with a nationwide ban being passed in Brazil in 2012², with Canada following closely thereafter finalizing a federal ban on menthol cigarettes in October 2017³. Characterized by a unique cooling sensation from menthol (a substance derived from plants such as peppermint and spearmint), menthol cigarettes are believed by many smokers to be less harmful than traditional tobacco cigarettes, although according to the U.S. National Cancer Institute there is no evidence to substantiate this notion⁴.

The Company has developed Taat Beyond Tobacco cigarettes as a better-for-you alternative to traditional cigarettes in an “Original” tobacco flavour, as well as a “Menthol” version, neither of which contain nicotine or tobacco. The user experience of Taat Beyond Tobacco cigarettes is designed to replicate that of a traditional cigarette between the “stick” format, cigarette-style packaging, a proprietary flavouring blend, and an enhanced volume of smoke exhaled. Taat Beyond Tobacco cigarettes each contain a minimum of 50mg of cannabidiol (“CBD”, a non-psychoactive derivative of hemp), which has been shown to mitigate tobacco withdrawals and reduce dependency. Initial retail market testing of Taat Beyond Tobacco cigarettes, as detailed in the Company’s June 29, 2020 press release, yielded overwhelmingly positive responses from users, whose anecdotes formed a general consensus that there were no significant experiential differences between Taat Beyond Tobacco cigarettes and legacy tobacco products.