 How are you guys doing? This is Rich, your host here on Beyond Rich TV Live with a very special guest, Senti Coscarella, the CEO of TAT Lifestyle and Wellness. I'm actually holding the brand new packaging of the new package Cigarette for TAT Original. What do you think about it? I think it's a great new pack. For us, when we were looking at redesigning the packaging, like one of the things that I did is I took a look at every single pack of cigarettes that sold in the United States. We wanted to create a product and packaging that smokers would otherwise find comfortable and resonate with them. So I think this particular packaging is a marked improvement on what we had before and I think it's going to resonate really well. I mean, the feedback that we've gotten has been extraordinary and everyone loves it, so I don't see any reason why smokers won't gravitate to it. Yeah, you know what's actually very interesting is I had the old package here and I tested it for the first time and I'm not a smoker and it was smooth and I didn't get a head rush. No, no, no. You won't get a head rush at all. And being a non-smoker, that's something I get afraid of is like if I smoke a cigarette I'm going to get like nauseous or get like a head rush. I was expecting it, no head rush and it was actually really smooth and I liked it. I actually liked it. It was really smooth. So I'm going to try to see as many people as I can to try this and get testimonials from other people to see what they think. Well, I'll tell you, listen, I've given that cigarette now to a bunch of people I know who smoke and every single time they'll try it. I said, okay, what do you think it tastes like? It tastes like a cigarette, okay, good. How do you feel? And after about two minutes, every single time, it's kind of like the way I feel. It just takes the edge off. It just feels good. I like it. I actually feel better than I have a cigarette. Exactly, because nobody has a cigarette and all of a sudden is, all right, I'm ready to take on the world, right? It just doesn't have that kind of experience. Something like this, I think it gives a lot of smokers a much better feeling than they would otherwise get with a cigarette. And I've seen it now, time and time and time again. I have not had one experience where I've given that product to a smoker and they try it and say, it doesn't taste like a cigarette. I don't really, I don't get it. Every single one. Oh. It's a cigarette. Yeah, yeah. You've got to try it. And listen, for us, that's of paramount importance because when I really take a look at the market, if you want to give smokers a viable alternative, it means to be exactly the same at the least. What I think we've done with that is gone a step above and gone better than a cigarette. And when smokers try that, they'll feel the difference. And when they feel that difference and enjoy that difference, there isn't a single reason why they won't buy that over a pack of cigarettes. Yeah, I agree. I mean, I used to smoke years ago and I haven't had a cigarette in years. And I was almost scared to try it because as a person that's walked away from cigarettes, you don't want to get back into it. No, no, no, no. And I remember those feelings of the head rush and the feeling nauseous and nothing. No. In fact, I feel like you said, I feel great, you know? So I'm really impressed actually. And you put out a video today, you put out a press release aftermarket talking about four reasons why Ohio was the launch location. Can you reiterate some of those reasons for us and for our viewers that are going to be watching? Sure. So when it comes to Ohio, it might not be the first place people would think, but strategically it makes an extraordinary amount of sense because of where it's positioned in the US and the markets that surround it. So when you start getting commercialization going in Ohio, there's natural bleed-through that'll happen into its surrounding states. And those are exactly the places that we would look at going to after that launch. So it makes a tremendous amount of sense. Also when you take a look at other CPG companies, normally when they would look at launching in Ohio or when they would look at launching in the US, Ohio would be a strong candidate for an initial market so that you can start building some infrastructure behind it. You can start figuring out why Americans as an example might gravitate to your particular product. It's a great representation of America as a whole. So for us, I think it made a ton of sense to launch there and if you take a look at Juul as an example, when Juul launched, they launched in four markets. They launched in San Francisco, they launched in Miami, they launched in New York, and they launched in Akron. So you're just following in the footsteps of Juul and obviously Juul's been a huge success. I mean Juul's done great and a lot of their initial launch focus was event-based. Now given COVID that becomes a little bit challenging. So I can't run a huge party in Miami or in San Fran or in Manhattan. So it kind of loses a little bit of that effect if you're trying to go down that road. But there was a strategic reason and I spoke to the agencies that actually launched Juul and there's strategic reasons which I understand why. In terms of why they picked Akron and Ohio as to be part of that consortium. And for us, I mean it made a natural sense. I think the people of Ohio are really going to enjoy this particular product. And for us, as much as I appreciate you wanting to try the cigarette, we're not looking to get new users into the category. What we're looking to do is get existing smokers a viable product that they can switch to. So we're not here to try to create a new problem. I'm not looking to try to recruit youth to start this smoking this product, which is why even our flavor profile matches that of tobacco. We're trying to provide actual smokers of cigarettes, a viable product that they can use to leave that nicotine addiction behind, which I know is something that smokers absolutely hate. Now you must be really busy because you guys are about to launch in Ohio November 27th, I believe is the launch date. So we're like less than a month away. How busy are you getting right now? You must be nuts, right? Yeah, I mean, you guys got a lot going on, right? Yeah, a ton. And look, for me personally, it's a ton of fun. So it's not like it really feels like work. It's a ton of work, but I really enjoy it, which I think is helpful. But for us, it's really an exercise in making sure that we're getting the right amount of scale built because we're going to need to manufacture a lot of cigarettes for the initial order. Yeah. And I mean, we'll have no problem doing it. It's just organizing all the resources to make sure that everybody's working on the same sort of plan, moving in the same direction, and get this product out to our distributors in Ohio so that they can start feeding into the actual convenience store so that consumers will have the ability to go out and buy it. And we're already starting to get some orders coming in from convenience stores. So I think we haven't even started the marketing yet. Next week is actually when we're going to start the marketing in Ohio. So we'll start seeding the market with some promotion around TAP. We'll look at starting to solidify a lot of orders on the convenience store side so that we can get it on the shelves. And I think the consumers in Ohio are really going to enjoy having the ability to try this product. And I think we'll get a tremendous amount of smokers converted. And then on the back of that success, we'll be able to expand into other markets in the US. And hopefully, we'll have the entire US in short order. I mean, it's a phased approach. I mean, if you really want to scale and succeed, you've got to put a stake in the ground, you know, make sure that you've got the right amount of success in that particular jurisdiction, then take those learnings and apply it and you'll start the skin. Right? There's a smart way to do it. I was really impressed with your press release when you guys said that you're looking for patents in Europe, in Asia, in America, and you guys are going global. This is big. This is really real. I remember a few months ago when it was an idea, and it was a great concept, and now we've got the packs. We've got the cigarettes. Oh, the cigarettes are in the pack too. You've got everything, and it's less than a month away. And now you've got these patents all over the world. Are we going to see TAT in China or Asia? Is this going to happen? Is this going to be real? Of course. Listen, I mean, I was looking at it this way. Marble is available in practically every country in the world. Absolutely. Well, why can't TAT? 100%. Look, it's not a function of magic. It's not a function of luck. It's a function of planning and execution. Totally. And I think that we have that. Now for us, it was an exercise in making sure that we owned our IP in as many countries as we could to start, and we'll start adding more and more as time moves forward. So a lot of people don't know this. And if you take a look at the tobacco industry, the trademark names are owned by different companies in different countries. So for instance, Marlboro, Marlboro is owned by Philip Morris, everywhere in the world, in Canada. Oh, wow. Interesting. Marlboro in Canada is owned by British American Tobacco. Oh, wow. Because once upon a time, Philip Morris, the person, sold it. Sold the rights to Canada to somebody else. So if you buy Marlboro cigarettes in Canada, they don't look like a pack of Marlboro. They don't taste like a pack of Marlboro, but they'll have the name Marlboro on it. Interesting. Marlboro cigarettes in Canada don't have a name. So I wanted to ensure that as we start gaining traction with this product, we own the IP and all these other jurisdictions. Otherwise, somebody else could go out and secure it. And then we have to figure out a way to get it back. So having that foresight to go out and secure those rights initially, I think, is important. And at least it helps us set the initial foundation in place to start building that brand profile in those countries so that when we launch, we actually have a global brand that we can then leverage. You guys have added a lot of management. You were the first piece of the puzzle, and there's been some other really powerful members that have been joining you. Do you guys have any other plans to add more members? Or are you guys kind of done for now? No. I think for us, it's an exercise of always trying to track the best and brightest that we can find in the industry. And we've been extremely fortunate, obviously, with Tim, who's done an extraordinary job. You know, with Michael Saxon on the advisory board and Kitiaz on the advisory board, they've provided tremendous support. And, you know, we've been getting calls from a wide variety of other sort of former or existing tobacco executives that are interested in the market once they hear about how it is that we're positioning and how we're looking to tackle the market, what we think we can actually achieve and why our value proposition is strong for actual smokers. They're all extraordinarily impressed at the point where they're like, listen, if there's any way that I can help, you know. Let us know. Don't forget to give me a call sometime. And I'm sure that we'll be making those calls sooner rather than later because if this is not something that's going to succeed on the back of one person, it never has been and it never will be. And it takes an extraordinary team to commercialize a product like this, both in the U.S. and globally. So at least for me, I'm always looking to bring on the best and brightest we can from within the tobacco industry and outside of the tobacco industry because it's always good to get fresh perspectives on how to commercialize things. And I don't think we're going to have an issue in terms of attracting that kind of talent. But yes, we're always sort of in the process of adding to our team so that we can build that infrastructure to actually make this a success. And I look forward to that. You did a deal with Horizon Ventures. They put $5 million into the company. Why did you do a deal with Horizon Ventures specifically? Obviously they're doing a lot of business internationally, but they're focused in Asia. That's where they're set up. Why then? Is that a strategic? 100%. So for us, we met with Debbie Chang who made the investment. The infrastructure that Horizon has and the due diligence process that they went through and the caliber of companies they would otherwise invest in for us was important. It was also important in terms of how they like to invest in companies. And that's, for them, they're not looking at buying into a company and then making a flip. Horizon as a company was one of the early shareholders in Facebook. Wow. They still own all their shares in Facebook. They could have cashed out a long time ago. Oh yeah? They typically cash out after something gets bought out. So they're holding 10 years. They hold for a long time. And they like to participate in all the up rounds to protect their equity position. So I think, you know, for them, from that standpoint as an investor, I think they're a phenomenal investor. Above and beyond that, I think they have a tremendous amount of relationships and infrastructure available in Asia that will work with them on tapping into so that we can start looking at commercialization efforts in Hong Kong, in China, and the surrounding regions. You know, that particular market is extraordinarily large. Yeah. I heard a statistic that the smokers in Asia, there's more smokers in Asia than there's people in America. Yes. And I was like, wow, that's like a holy grail. In China. For cigarettes. Yeah. For tobacco companies. China's tobacco industry is run by a state company called China Tobacco. Now China Tobacco is bigger than Philip Morris, Altria, JTI, British American Tobacco, and practically every other tobacco company combined. Wow. Yeah. That's incredible. They're large. So that kind of gives you the breadth of how big that market is. And having an opportunity to at least begin some conversations in those markets, is extraordinarily valuable to us, and definitely helped in terms of our willingness to want to work with horizons. I mean, I think they're going to be a tremendous partner, and I look forward to working with them in the future. Yeah. I think I did a lot of research, and they're invested in over 100 companies. It's right on their website, globally, every type of business. Yeah, on their Wikipedia page. I think they've invested in Facebook. They've invested in Dollar Shave Club in Syria before it was bought up by Apple. Zoom. In Impossible Foods. Yes, another one. Just competitive beyond meat. That's right. So in terms of the alternative category, they absolutely understand it. They invested in Impossible Foods when their hamburger patty was still $60,000. Yes, I heard that story. And they worked with the management team to get that down to a price point where they felt the consumer would be willing to pay. While the beauty about a company like ours is that pack doesn't cost $60,000 to make. No. And that's the thing too, is your price point. Let's talk about your price point. $3.99 a pack. Yeah, in Ohio. That is very, very competitive. It's half the price of the other cigarettes that are on the shelves. Look, the logic for us is ultimately we're here to try to help solve a nicotine addiction problem. So I want to help smokers transition to a product where they can have the freedom to choose. You want to have a smoke, have a smoke. You don't want to have a smoke, don't have a smoke. It doesn't bother me that at least I know that you have the freedom to choose, which is not something you get when you have cigarettes. I didn't want to make that freedom expensive, right? From my standpoint, I wanted to make sure that it didn't matter what pack of cigarettes you buy. You can afford that. And if that's a choice you want to make, then I hope you do. And at $3.99, that's a price point that still gives you guys enough revenue. You guys will still be able to make enough of an ROI to make this a very lucrative business. Oh, yeah. At a retail price point of $3.99, we've been making the same margin as Marlboro does selling at $7. Wow, that's incredible. Yeah. So I think our margins are very healthy. I think that we can pass a lot of those savings on to the consumer so that we can help further incentivize them to make what in my mind is a better choice for them. So instead of continuing to smoke cigarettes that are going to keep you addicted to something or moving over to a vape, and it's the same conversation I have with anybody who smokes, right? Vapes have been around now for 10, 15 years in terms of mass market. There isn't a smoker around that doesn't know vapes, exists. Most smokers have tried vape, but the number of smokers outpaces vape 20 to 1. Wow. That tells you what the preferred delivery mechanism is. People like smoking their cigarettes. There's no doubt about it. It's the habit. Exactly. They're looking for an alternative. They haven't found one yet, but I think that's it. What would be the message you would leave for an investor that's watching this video that's interested in TAT, maybe in trying it, maybe in investing in it? What would be your message to them? Look, I think for me, you know, when you look at a lot of microcap companies, okay, you take a look at the valuation that we have now and probably around 200, 250 million. And for some people, I mean, oh, maybe I missed the opportunity. You haven't missed the opportunity because we hit $250 million on the back of an idea. That's not an idea anymore. That's a real packaging with real cigarettes in it that's going to hit a real market and generate real sales. As far as the company goes, we hit 250 million in valuation. I haven't even let them match yet. Once I launch in market, you tell me what you think is going to happen. Because when I can show you the success that happens in Ohio, because every single smoker that I've given that to would otherwise buy it, I can't keep those packs on me. Yeah, I have one of my investors within our community is calling me, wants to meet with me today after this just to get a cigarette. A single cigarette. He's like, I'll buy them from you. I'm like, yeah, you don't have to buy them from me. Just make a video. To do a testimonial. He's literally going to be meeting up with me as soon as we're done this. That's how much excitement there is for this product right now. Exactly. And I think that we can translate that excitement into sales. And on the back of those sales, I think we'll be able to expand into all the markets throughout the US and international markets. When you start doing that, the 200 million is well in your rear view mirror. Absolutely. And that's the way that I see it. It's an exercise in building a company that can help smokers and tackle this market. And I think that we have the exact product to do that and the right packaging to do that with the right price point to do that and the right market to do that. I love it. I'm really, really excited. I tried it for my first time today and I was really impressed. I'm going to go and get as many people as possible to try the cigarette. I want to get as many people to give me their opinions. And thank you for this time today, Setti. My pleasure. The CEO of TAT Lifestyle and Wellness, Setti Coscarella. Thank you for your time today. And guys, if you haven't learned about TAT Lifestyle and Wellness, come to Rich TV Live, click on the like, subscribe, and you can see all the videos every time we have a video or any time there's any news. Feel free to come to Rich TV Live and we'll update you on everything as it happens. Also, go and subscribe to TAT Lifestyle and Wellness on YouTube as well where you can get all the updates 24 hours a day, 7 days a week. Thank you, Setti, for your time today. Thank you guys for watching. Have a nice day. TAT Lifestyle and Wellness will be on the shelves in Ohio November 27th. Thank you guys for watching. We'll talk to you soon.