TAAT Global Alternatives (CSE: TAAT / OTCQX: TOBAF / FRA: 2TP) updated its investors with results for the past six months this week. It announced accelerated growth in the three months ended July 21, with gross revenues reaching a record high of C $ 1.3 million, an increase of 1956% over the same period in 2020.
Gross profit for the third quarter of 2021 was C $ 781,226 with a gross profit margin of 59.84%. The company’s shares are still included in the CSE Composite Index and its CSE 25 subset of the CSE Composite’s 25 largest companies by market capitalization. It maintains a healthy balance sheet with working capital of C $ 10 million.
TAAT has just landed its first distributor in the United Kingdom and Ireland as well as one in Australia. The company has received the necessary regulatory approvals and has shipped its first batch of products to the UK.
Setti Coscarella, CEO of TAAT, sees this as a very important benchmark, as he believes non-U.S. Distributors are carefully monitoring TAAT’s ability to overcome the regulatory and tax hurdles involved.
TAAT acts on customer feedback to improve the base product
Coscarella says the first wave of consumer feedback has now arrived and the company has been able to make improvements to its Beyond Tobacco product based on that. He and his team have spent much of the summer attending trade shows and meeting distributors. Using its manufacturing center in Nevada, TAAT Global Alternatives already provides an expanding distribution network in the United States, including key states like Georgia, North Carolina, and Illinois.
TAAT tries to be as smart as possible in terms of scaling – where it makes sense, for example in Europe, it will look to partner with other companies to primarily help. Coscarella says that means he won’t need to spend that much on capital.
Coscarella also told us he expected to hit seven sales figures this year and eight sales figures next year (and nine sales figures in 2023), but the company was able to hit that target. seven digits in a single quarter. “It’s not normal, it’s not normal, it takes a lot of work and a good appreciation of the industry,” he explained.
Coscarella: TAAT aims to double retail outlets in next six months
Looking ahead to the next six months, Coscarella would like to be in at least double the number of stores in the US and add a few more European markets. He says many distributors were waiting to see if TAAT could go international. The approval in Ireland and then in the UK are very important steps. TAAT Global Alternatives also wants to be present in as many US states as possible, as quickly as possible.
The revised formulation of TAAT’s proprietary Beyond Tobacco product means waste inefficiency in the manufacturing process has been reduced from approximately 30% to 1%.
TAAT has yet to be seen in the context of Big Tobacco’s own leadership change. The company has done a very good job in terms of building a moat around its brand, both in terms of patents and IT protection. Coscarella says it’s no coincidence that big tobacco companies are now using the phrase Beyond Nicotine in their marketing.