The evolution of the cannabis industry has introduced new products into the marketplace, causing sales and demand to grow.
As the legal cannabis industry continues to progress, innovative producers have begun to develop alternative methods to consume cannabis. Notably, cannabis-based oils have become widely popular because of their potent and immediate effects.
Overall, CBD is having a major impact on global markets because it offers a number of therapeutic benefits without the psychoactive effects of THC. Therefore, many countries such as Australia, Canada, Chile, Denmark, Mexico, Portugal, and Thailand have all legalized CBD for medical applications. In particular, CBD is having a profound impact on the U.S. and Canadian markets because of their massive user base. Moreover, the U.S. and Canada have legalized CBD entirely, which prompted many retailers to add CBD products to their shelves.
In the North American region, CBD is much more prevalent for treating minor medical conditions like soreness or headaches. Additionally, North American consumers are purchasing CBD-based products for health and wellness purposes. And, according to data compiled by Transparency Market Research, the global CBD hemp oil market is expected to reach USD 2.5 Billion by 2026 while exhibiting a CAGR of more than 11% throughout the forecast period from 2018 to 2026. TAAT Lifestyle & Wellness Ltd. (CSE: TAAT), Universal Corporation (NYSE: UVV), Vector Group Ltd. (NYSE: VGR), Turning Point Brands, Inc. (NYSE: TPB), Imperial Brands PLC (OTC: IMBBY)
CBD and hemp can also be used in fighting addiction. According to the World Health Organization (WHO), the tobacco epidemic is one of the biggest public health threats the world has ever faced, killing more than 8 million people a year around the world. More than 7 million of those deaths are the result of direct tobacco use while around 1.2 million are the result of non-smokers being exposed to second-hand smoke. And E-cigarettes are particularly risky when used by children and adolescents. Nicotine is highly addictive and young people’s brains develop up to their mid-twenties.
A study from 2018 indicates that, “Cannabidiol (CBD), a non–intoxicating cannabinoid found in cannabis, may be a promising novel smoking cessation treatment due to its anxiolytic properties, minimal side effects and research showing that it may modify drug cue salience.” According to the study results, a single 800–mg oral dose of cannabidiol reduced the salience and pleasantness of cigarette cues, compared with placebo, after overnight cigarette abstinence in dependent smokers. Cannabidiol did not influence tobacco craving or withdrawal or any subjectively rated side effects.
TAAT Lifestyle & Wellness Ltd. (CSE: TAAT) announced yesterday that breaking news, “it has entered into a comprehensive distribution agreement on July 3, 2020 with Worldwide Vape Distribution (“WWV”) in which WWV plans to distribute both the tobacco and menthol versions of Taat Beyond Tobacco™ cigarettes. Given WWV’s significant presence in the state of Texas, in which the tobacco epidemic has received federal-level attention from the CDC1, the Company believes that its relationship with WWV can be helpful in attaining a presence in a potentially key market for the initial adoption of Taat Beyond Tobacco™ cigarettes, possibly in addition to other markets in which WWV does business as a distributor.
Based in northwest Dallas, WWV is one of the largest Texas-based wholesalers of premium vaping products with distribution partners in 38 U.S. states. Through its distribution partners, between direct and indirect relationships WWV collectively has access to more than 10,000 retail stores. In its distribution network, as well as on its online storefront, WWV carries dozens of varieties of liquified tobacco (also known as “e-juice”), as well as disposable electronic cigarettes, hardware, and accessories. Augmenting the customer experience with insights about getting the most from the vaping experience, WWV has a collection of more than 70 original articles on its blog. In total, WWV represents more than 100 brands. An overview of WWV’s brand portfolio can be viewed here: https://wwvape.com/brands
The Company recently announced in a June 22, 2020 press release that it was preparing to launch its tobacco-free and nicotine-free cigarettes to the market as a better-for-you alternative to traditional tobacco cigarettes. Taat Beyond Tobacco™ cigarettes contain a minimum of 50mg of CBD, which has been shown to mitigate tobacco withdrawals and reduce overall dependency on tobacco. The product of meticulous engineering, Taat Beyond Tobacco™ cigarettes are designed to emulate the smoking experience of a traditional cigarette between cigarette-style packaging, a proprietary blend of tobacco flavouring, and an enhanced volume of smoke exhaled.
In the first phase of retail market testing described in the Company’s June 29, 2020 press release, users have indicated they observed no significant experiential differences between Taat Beyond Tobacco™ cigarettes and traditional tobacco cigarettes. Because many users of vaping products such as those distributed by WWV choose these products as a replacement for tobacco cigarettes, TAAT LTD anticipates that distributing its products alongside vaping products will position Taat Beyond Tobacco™ cigarettes among a receptive and knowledgeable audience.
Muhammad Abbas, Chief Executive Officer of WWV commented, ‘Ever since the health effects of tobacco smoking became widely known, many consumers have sought alternatives to smoking traditional cigarettes but have struggled to make a change because of how addictive of a habit smoking is. Vaping was a big step in helping consumers to make a positive change, which is what enabled us to build our business into what it is today.
Admittedly, many smokers cannot adapt to vaping because of how different it is. TAAT LTD has addressed this by developing a ‘stick’ product that mimics a cigarette which is designed to deliver a substantially similar smoking experience. We are excited to offer Taat Beyond Tobacco™ cigarettes in both the tobacco and menthol varieties to our customers and retail partners as we expand our product offerings to include the latest and greatest innovations in alternatives to tobacco cigarettes.’
‘WWV can be an important distribution partner for us for several reasons,’ said Joe Deighan, Founder of TAAT LTD. ‘Their presence and reach in the tobacco cigarette alternatives category, especially in the state of Texas, can be key for us to establish our brand in the United States. Because WWV offers such a carefully-curated selection of premium vaping products, we consider their confidence in Taat Beyond Tobacco™ cigarettes to be a vote of confidence in our early-stage product, and we look forward to working with WWV to build our momentum as we seek to position ourselves in the tobacco industry.'”
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