EXPANDING MARKET –– A DISTINCTIVE POSITION

COMPETITIVE MARKET 

The U.S. tobacco and nicotine market includes tens of millions of adult consumers who collectively spend approximately $100 billion annually.

This large, established market presents a significant opportunity for innovative alternative smoking products that preserve familiar smoking rituals and routines.

PRIMARY MARKET

Within the broad competitive market, the alternative-cigarette segment includes plant-based herbal products that by definition must be free of tobacco and nicotine.

Industry estimates indicate beginning in 2024 the U.S. alternative-cigarette market started exceeding $1 billion annually and is projected to grow at a compounding annual rate of approximately 15% through 2030. 

Growth is being supported by increasing consumer awareness, smokers’ interest in products they perceive to be healthier and safer, broader product availability, and wanting to reduce or eliminate tobacco and nicotine consumption.

TEA-BASED POSITION

COMSIS’ tea-based platforms are positioned within the rapidly expanding alternative-cigarette market. They are distinguished from the other alternatives, the result of tea’s global popularity, recognizable taste and aroma, and consumer awareness of its naturally occurring wellness compounds that address consumers' evolving preferences within both the primary and competitive markets.

CAMELLIA SINENSIS (TEA)

Camellia sinensis, the plant from which all teas are produced, is among the world’s most familiar and widely consumed natural products.

MARKETING PHILOSOPHY AND EMPHASIS

COMSIS’ marketing and promotional programs are directed toward existing adult smokers seeking alternatives to tobacco and nicotine products.  They are not designed to encourage nonsmokers to begin smoking, nor deliberately attract non-adults.

Communications emphasize product innovation, smoking rituals and routines, moderation, taste and aroma, tobacco-free, nicotine-free, free of chemical additives, and tea's naturally occurring caffeine that may interrupt nicotine cravings. 

REGULATORY ENVIRONMENT

Alternative cigarettes containing neither tobacco or nicotine are subject to a different regulatory and taxation framework than conventional tobacco and nicotine products.

This distinction may provide meaningful commercial advantages in taxation, marketing, and distribution.

COMSIS conducts its manufacturing, marketing, distribution, and sales activities in accordance with applicable federal, state, and local requirements.