Consumer Research Study of TAAT Product and Brand Among Smokers Aged 21+ in OH, MI, IL, and PA Reflects Strong Reception - Seite 2

In this study, a group of 1,204 smokers aged 21+ in Ohio, Michigan, Illinois, and Pennsylvania were queried about their perception of TAAT in concept and how they anticipate they might use TAAT either in place of or alongside their current tobacco cigarette of choice. From this group, a subset of 176 participants in Ohio were shipped cartons of TAAT Original, Smooth, or Menthol and asked to complete an in-home trial, providing their feedback in an online questionnaire.

The initial 1,204-person group in this study consisted of 60% male and 40% female respondents from a variety of age groups (29% ages 21-34, 39% ages 35-54, 32% aged 55+), with approximately 70% residing in suburban or rural areas. On average, smokers in this group consumed more than 90 cigarettes per week, and nearly one third were users of both tobacco cigarettes and electronic cigarettes. Nearly half of those who indicated they use electronic cigarettes stated they do so as a way of reducing their tobacco intake, while only 14% indicated they have sustained their usage of electronic cigarettes for five or more years.

Nearly three quarters of survey responses from Ohio smokers who participated in the in-home use test of TAAT gave ratings of “Very Good” or “Somewhat Good” with regard to the overall product quality. Notably, these sentiments were much higher among those who sampled TAAT Menthol, with 84% of respondents providing such ratings. These findings are consistent with early-stage retail market performance of TAAT Menthol, which was the first TAAT variety to be sold out and reordered by tobacco retailers in Ohio, as announced in the Company’s January 12, 2021 press release.

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Nearly three quarters of smokers aged 21+ in Ohio who sampled TAAT Original, Smooth, or Menthol in the follow-up study gave ratings of “Very Good” or “Somewhat Good” with regard to overall quality. Those who sampled TAAT Menthol gave the highest ratings, with 84% of respondents classifying this variety as “Very Good” or “Somewhat Good”.

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TAAT Chief Executive Officer Setti Coscarella commented, “Conducting this study among smokers aged 21+ in Ohio and neighbouring states after launching the product in Q4 2020 enables us to make near-term business decisions based on a combination of practical and theoretical insights. Based on how frequently TAAT is reordered by retailers in Ohio and purchased online by smokers aged 21+ across the country, we know there is continued interest… however, we need far more information than that in order to intelligently plan our efforts to roll TAAT out on a larger scale. In this two-part consumer research study, we learned many things about how TAAT is perceived both as a brand and as a product in concept, in addition to how the user experience of TAAT is regarded among those who sampled it. The responses to this study reinforced our belief that TAAT has several competitive advantages in the USD $814 billion global tobacco industry, including the novel element of being nicotine-free and tobacco-free, an attractive price point compared to tobacco cigarettes, and the ability to purchase TAAT online. As we expand our market footprint in 2021, we intend to capitalize on these advantages to capture the interest of smokers aged 21+ and further establish TAAT as a better choice and a recognized brand name in the tobacco category.”