REG - Chill Brands Group - Launch of Vapour Products

Chill BrandsAnnouncement

31/03/2023 07:15

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RNS Number : 9141U  Chill Brands Group PLC  31 March 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

 

31 March 2023

 

Chill Brands Group plc

("Chill Brands" or the "Company")

 

Launch of Vapour Products

 

Chill Brands Group, the international consumer packaged goods company, is
pleased to provide an update on the launch of its new range of nicotine-free
vapour products.

 

Further to the announcement on 7 December 2022, an initial purchase order for
Chill Brands' disposable nicotine-free vapour products has been received from
a new distributor operating in Florida and the surrounding states. The
purchase order represents a significant proportion of the Company's existing
vapour inventory.

 

The products, marketed as 'Chill Zero', are under consideration by numerous
retail buyers representing some of the largest convenience store chains in the
United States. Subject to confirmation of final purchase orders, the Company
expects to have placed its entire first production run and is working with
manufacturing partners to prepare for a  reorder. Further information
regarding the quantum of vapour sales made will be announced as purchase
orders are fulfilled and related revenues can be recognised.

 

Online Vapour Product Sales

The Company is also taking steps to enable online sales of its vapour products
via the Chill.com website. The 2019 US Preventing All Cigarette Trafficking
(PACT) Act prevents the United States Postal Service (USPS) from shipping
vapour products regardless of their nicotine content. Similar restrictions
have been implemented by other major carriers, preventing many brands from
making online direct-to-consumer sales.

 

Chill Brands has procured a number of relationships with specialist carriers
that will enable the Company to provide compliant home delivery of vapour
products sold online via Chill.com. These shipping arrangements will allow the
Company to secure what appears to be a sizeable opportunity to target online
consumers who may be underserved by the wider vapour industry.

 

Further announcements regarding the onboarding of the Company's vapour
products to Chill.com and other e-commerce sales channels will be made in due
course.

 

Update on Employment Dispute

The Company is pleased to report that it has reached an amicable settlement in
its dispute with a former employee as referenced in its announcement of 28
December 2022. The settlement has no material impact on the Company's ongoing
operations or its financial position.

 

-ENDS-

 

About Chill Zero Vapour Products

Chill Zero vapour products are flavoured, disposable personal diffusers. They
offer a similar experience to traditional vaping products but without the
addictive effects of tobacco or nicotine. They appeal to a wide range of
consumers including those who wish to quit smoking or reduce their nicotine
intake, as well as non-smokers who enjoy the flavours, sensation, and social
aspect of using vapour products.

 

Research suggests that the market for vapour products could exceed US $55
billion by 2029, with more than 26 million Americans already using vaping
devices both recreationally and as a functional alternative to traditional
tobacco products.

 

Chill Zero vapour products are currently available in three flavour variants:
lemon, mint ice, and passionfruit/grapefruit. Each device provides roughly 600
puffs. Chill Brands' intends to complete a UK launch of its devices later in
2023, with planning for range extensions underway.

 

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is concerned with the
development, marketing and distribution of wellness and recreational products
containing natural, functional ingredients. The Company's proprietary product
range is distributed by some of the most recognisable convenience retail
outlets in the US and includes nicotine-free disposable vapour products that
cater to the rapidly growing market for tobacco alternatives. Chill Brands
also operates the chill.com e-commerce website, on which it is building a
marketplace of products from third-party brands.

 

Publication on website

A copy of this announcement is also available on the Group's website at
(http://www.chillbrandsgroup.com/) http://www.chillbrandsgroup.com
(http://www.chillbrandsgroup.com/)

 

Media enquiries:

 Chill Brands Group plc                                  contact@chillbrandsgroup.com
 Allenby Capital Limited (Financial Adviser and Broker)  +44 (0) 20 3328 5656

 Nick Harriss/Nick Naylor (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

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