{"id":1199602,"date":"2020-08-04T08:00:00","date_gmt":"2020-08-04T13:00:00","guid":{"rendered":"https:\/\/oilandgas-investments.com\/?p=32674"},"modified":"2020-08-04T08:00:00","modified_gmt":"2020-08-04T13:00:00","slug":"unique-product-brilliant-strategy-new-ceo-explains-the-perfect-set-up","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1199602","title":{"rendered":"UNIQUE PRODUCT, BRILLIANT STRATEGY\u2013New CEO Explains The Perfect Set-Up"},"content":{"rendered":"

UNIQUE PRODUCT, BRILLIANT STRATEGY
<\/strong><\/span>New CEO Explains The Perfect Set-Up for
<\/strong><\/span>Beyond Tobacco<\/em><\/strong><\/span><\/h2>\n

\u00a0<\/p>\n

I have rarely had my eyes opened in a CEO interview like I did last Friday with new TAAT (TAAT-CSE)<\/strong><\/span> CEO Setti Coscarella.<\/p>\n

The way he outlined the product positioning and marketing plan for TAAT\u2019s Beyond Tobacco cigarettes\u2014no tobacco, no nicotine, no hazardous addiction\u2014made me a believer.<\/p>\n

He spoke with the weight of experience\u2014he was a lead strategist at global cigarette giant Philip Morris for years before leaving to become CEO at TAAT.<\/p>\n

After that call, I put in for $70,000 worth of the just announced $3 million financing.<\/p>\n

Setti explained where The Big Boys\u2014Philip Morris\u2014see the Market going, and where all the OTP\u2014Other Tobacco Products\u2014are focusing.\u00a0<\/p>\n

Most importantly, he showed me how both his product and his marketing plan is different than everybody else out there\u2014and if he\u2019s right, this company should very quickly become<\/p>\n

    \n
  1. a cash cow for investors<\/li>\n
  2. remove nicotine and tobacco from the lungs of millions of smokers around the globe<\/li>\n<\/ol>\n

    He convinced me he is going after the largest market in this global $800+ billion market, with the simplest product, and the simplest channel to market.\u00a0<\/p>\n

    For me, this is a perfect venture capital story.\u00a0The company has a novel product, and now a real CEO with the experience and connections to make the inventor\u2019s dream come true\u2014all the while producing a huge social benefit.<\/p>\n

    This has the potential to be a millennial \/ ESG investor\u2019s dream.\u00a0In this kind of stock market where Tesla (TSLA-NASD)<\/strong><\/span> and Beyond Meat (BYND-NYSE)<\/strong><\/span> can see their stock go to the stratosphere before any real fundamentals kick in—there\u2019s no reason that can\u2019t happen to TAAT-CSE.\u00a0<\/p>\n

    Just remember, this is venture capital and there are no guarantees.<\/p>\n

    This story is a bit longer than most of mine simply because there was So Much Gold<\/em> in this interview.\u00a0The more you read here, the more you will be convinced this company has a GREAT shot at being a global brand.<\/em>\u00a0There\u2019s a lot of valuable background and marketing detail here.<\/p>\n

    People are always the most valuable product \/ commodity.\u00a0Coscarella is an MBA, with a background in investment banking, so he knows how to talk to the Street (he will be GOLD in institutional boardrooms).\u00a0More importantly, he spent several years at Philip Morris in a division that was specifically aimed at Reduced Risk Products\u2014stuff besides traditional cigarettes. Perfect.<\/p>\n

    Now folks, I don\u2019t smoke; never have.\u00a0When Coscarella tells me that he left a great job at Philip Morris to be CEO here because the TAAT cigarette has everything he could want in a tobacco-less cigarette\u2014I can only believe him. (\u201cI\u2019ve never tried anything like it, and I\u2019ve tried a lot of cigarettes. When I finally got it I said “Give me that pen.””)<\/p>\n

    After that, it really comes down to marketing.\u00a0And this is where I thought his interview really shone.<\/p>\n

    In essence, Coscarella talked about how smoking creates and fills TWO needs for smokers: one is nicotine, and the other is The Ritual of Smoking<\/em>\u2014having that cigarette in your hand.<\/p>\n

    Almost everybody in the $800+ billion tobacco market is strategizing how to meet the nicotine need.\u00a0TAAT is almost unique in using their Beyond Tobacco to go the other way\u2014satisfy The Ritual.<\/p>\n

    Listen to this (and I\u2019ve underlined the parts I think are really important):<\/p>\n

    \"\"<\/a><\/p>\n

    \u201cPhillip Morris has made a concerted effort worldwide to move their business from combustible products to next-generation-products.<\/p>\n

    \u201cBut they\u2019ve decided that the (physical act of) smoking part is the harmful part, so they\u2019re keeping the tobacco and the nicotine. And when you look at a lot of the other vapes, they get rid of tobacco and smoking, but keep the nicotine.<\/p>\n

    Keith:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Yeah. I never thought about it that way, but yes. Of course.<\/p>\n

    \u201cRight? So when I look at that, the one thing they all have in common is nicotine. Now the problem with nicotine is it’s actually a very useless drug. It doesn’t do anything. There’s no efficacy to it and the only reason it exists is to keep you addicted to the action that you’re performing in order to consume the nicotine.\u201d<\/p>\n

    \u201cWhen most people think of the harmful effects of smoking, they tend to lump smoking, tobacco, and nicotine altogether in one big package of BAD.<\/p>\n

    \u201cThe primary way of consuming nicotine is through smoking. The main reason why smokers continue to have cigarettes is because they’re in perpetual withdrawal.<\/p>\n

    \u201cI think the value proposition we have is it’s a product that won’t get people addicted. With this product, I think the consumer has much more control in their consumption, how they want to smoke, and when they want to smoke.\u201d<\/p>\n

    Coscarella and TAAT are going in the exact opposite direction\u2014get rid of the nicotine, and keep the smoking.\u00a0But deliver a smoke with no nicotine or tobacco.\u00a0It\u2019s the physical act of smoking that is the big craving that TAAT will satisfy\u2014without the BAD stuff.<\/p>\n

    \u201cIn general, smokers prefer a combustible product,\u201d he explains.\u00a0\u201cPeople that smoke actually like the act of smoking. There’s something about it. We call it The Ritual.<\/em> The smoke, lighting it, the crackle, the way it feels in your hands, flicking the ash. Like all these sorts of little things that form this habit go far beyond just delivering nicotine.<\/p>\n

    \u201cAnd I think we can match that experience with a product that is all natural, that doesn’t have a lot of the preservatives and additives that cigarettes have.<\/p>\n

    \u201cAnd we can do it with a much cleaner organic material than what tobacco ends up being by the time it’s ready to be rolled.<\/p>\n

    \u201cBut I also know that a lot of smokers are looking at alternatives. That’s why everyone keeps trying to vape, or any other product, and they’ll have multiple vapes.<\/p>\n

    \u201cThere’s a pent-up demand for something new.<\/u><\/p>\n

    \u201cSmokers just really haven’t scratched the itch yet and I think we’ve got a product that can because we’ll get rid of the tobacco.<\/p>\n

    \u201cWe’ll get rid of the nicotine. We’ll give you a format that you actually like and deliver you a product that is significantly better for you than consuming a useless drug called nicotine.<\/p>\n

    \u201cNow, from my experience at Phillip Morris, when I take a look at a lot of these next generation products, I know that the vast majority of users will only use it for a short period of time. So whether you go on a vape, or the heated tobacco product, or whatever it might be, the longevity of that consumer on that product is not terribly high.<\/u><\/p>\n

    \u201cSo aftr about three to four months, they start to dabble back into combustible products because that’s something that they’re much more familiar with.<\/p>\n

    \u201cAnd also, we’ve basically got the entire market chasing next generation products, whether it be vape or heated tobacco, and they’re leaving this entire market basically unattended. The vast majority of people still smoke cigarettes.<\/u><\/p>\n

    \u201cI look at it like Henry Ford said, “Everybody said they want a faster horse, but I’m going to give them a car.” And it’s the same sort of thing here.\u201d<\/p>\n

    So TAAT and Coscarella are somewhat unique in being a next generation company going after The Big Cigarette Market\u2014the $800 billion gorilla.<\/p>\n

    \"\"<\/a><\/p>\n

    There are two HUGE benefits to doing this:<\/p>\n

      \n
    1. Channel to market is already established\u2014there are hundreds if not thousands of distributors of cigarette products around the world<\/li>\n
    2. With no tobacco or nicotine, there are only a fraction of the taxes on TAAT’s cigarettes\u2014allowing them to be sold at a MUCH LOWER price point (and still be a cash cow!!)<\/li>\n<\/ol>\n

      \u201cWe want to be able to use the existing channels. I mean there’s no point in trying to re-invent the wheel. I mean the channels already exist and it’s really an exercise in getting ourselves in that channel.<\/p>\n

      \u201cOur efforts will be in getting a lot of the mainstream channels on board, the 7\/11’s, the AMPM’s, the Circle K’s. And I think we can absolutely get our product on those shelves. And once it goes on those shelves, this thing flies because again you’d be able to offer it at a price point significantly better than a comparable cigarette.<\/p>\n

      \u201cWe’ve already signed agreements with distributors that have access to over 30,000 points of sale. We’ve got pre-orders already.<\/u><\/p>\n

      \u201cI can get this made at a price point that I think is significantly cheaper than anyone else. And with that, it’ll allow us to price it accordingly, and get it into those markets.<\/p>\n

      \u201cAnd then from a national standpoint I think this is an opportunity to do direct to consumer.\u00a0If people want to order it, they can order them, we can ship it to them. It’s light enough that the shipping costs are actually quite cheap. I think this is an opportunity to build a subscription service for it because it’s absolutely something that fits that particular model.<\/u><\/p>\n

      \u201cAnd then we’ll box all that with the brick and mortar strategy and getting into the right retail distribution.<\/p>\n

      \u201cI think Juul did a tremendous job when they launched and were able to basically create a product. I mean before Juul launched the vape category was effectively nonexistent. “<\/p>\n

      Keith:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0So how do you price this \u201chealthy\u201d cigarette\u2014as a premium brand or just under the cost of regular cigarettes\u2026what are you thinking here?<\/p>\n

      \u201cWhen I take a look at the cigarette consumer, basically cigarettes exist in one of four categories. They’re either premium, mid-tier, low tier, or ultra low tier. The biggest pool being ultra low tier.<\/p>\n

      \u201cNow, I know when somebody goes to a convenience store, the only question they would ever ask the clerk is what’s your cheapest smoke? Nobody ever asks what’s your best smoke?\u00a0It doesn’t happen.<\/p>\n

      \u201cSo the strategy for me is to manufacture the product at a price point that we can offer it as the cheapest possible smoke. And then I think we’ll be able to compete with any brand of cigarette because in general people don’t really like to invest in their smoking habit.<\/p>\n

      “One of the main reasons Juul did so well was that it was significantly cheaper than a pack of cigarettes for the equivalent number of puffs. And they did okay.<\/p>\n

      \u201cAnd then I think you can create premium-ness within that price point.\u201d<\/p>\n

      TAAT will be rolling out their Beyond Tobacco line of cigarettes in Q4 this year. I asked Coscarella to give me a sense of what to expect in the near and mid-term future.<\/p>\n

      \u201cI have no doubt that we’ll be able to hit our timeline of Q4 2020 in terms of getting it on the shelves. We’ll be able to start slinging orders and in addition to that, we’ll be rolling out our marketing plan.<\/p>\n

      \u201cWith the team that we have in place I think we can execute this hands down.\u00a0You’ve got a billion plus smokers around the world. Significant percentages are looking for something that’s better than what they’re currently doing.<\/p>\n

      “A lot of them have tried to quit and can’t. And I think a product like this can actually deliver them what it is they’re looking for.<\/p>\n

      “I mean the market opportunity is tremendous. It’s a trillion dollar market–that the incumbents are effectively handcuffed in doing anything. And they’re all chasing something else.<\/u><\/p>\n

      \u201cSo you have a billion smokers, everybody’s chasing the niche products, why wouldn’t you go after that market?<\/p>\n

      \u201cFor me, this was a home run the second I heard about it.\u201d<\/p>\n

      Keith:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0That\u2019s what I\u2019m starting to think too.<\/p>\n

      TAAT Wellness & Lifestyle has reviewed and sponsored this article. <\/u><\/strong>The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons.\u00a0 Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.\u00a0 Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements.\u00a0 No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.<\/p>\n

      Keith Schaefer is not registered with the United States Securities and Exchange Commission (the \u201cSEC\u201d): as a \u201cbroker-dealer\u201d under the Exchange Act, as an \u201cinvestment adviser\u201d under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.<\/p>\n","protected":false},"excerpt":{"rendered":"

      UNIQUE PRODUCT, BRILLIANT STRATEGYNew CEO Explains The Perfect Set-Up forBeyond Tobacco   I have rarely had my eyes opened in a CEO interview like I did last Friday with new TAAT (TAAT-CSE) CEO Setti Coscarella. The way he outlined the product positioning and marketing plan for TAAT’s Beyond Tobacco cigarettes—no tobacco, no nicotine, no hazardous […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[529],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199602"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1199602"}],"version-history":[{"count":4,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199602\/revisions"}],"predecessor-version":[{"id":1206672,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199602\/revisions\/1206672"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1199602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1199602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1199602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}