REG - Chill Brands Group - Planned Launch of Vape Products

Chill BrandsAnnouncement

07/12/2022 07:00

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RNS Number : 8262I  Chill Brands Group PLC  07 December 2022

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

7 December 2022

Chill Brands Group plc

("Chill Brands" or the "Company")

 

Planned Launch of Vape Products

Chill Brands Group, the international consumer packaged goods company, is
pleased to announce that production has commenced on a new line of disposable
vapour products scheduled to launch during Q1 2023.

These nicotine-free botanical e-cigarette devices will initially be available
in three fruit flavours with sales to be made both in retail stores and online
via Chill.com. The Company's supplier has agreed to a reduced production price
and extended production run to enable Chill Brands to expedite the launch of
this new product category without incurring significant upfront costs.

Data from research bodies suggests that the market for vapour products could
exceed US $55 billion by 2029. It is estimated that more than 26 million
Americans use vapour products and, in addition to sustained attrition of users
from traditional tobacco products to e-cigarettes, many consumers are now
inclined to seek out nicotine-free alternatives that replicate the flavours,
sensations, and habits they have come to enjoy without the inclusion of
addictive ingredients.

Public Health England previously reported that the use of vapour products is
around 95% less harmful to health than smoking traditional tobacco products.
This sentiment was echoed by the American Association of Public Health
Physicians, while the United Kingdom Committee on Toxicity of Chemicals in
Food, Consumer Products and the Environment recently stated that the risks
associated with Electronic Non-Nicotine Delivery Systems (ENNDS) were
"substantially lower" than with conventional tobacco products. While Chill
Brands does not make any health claims regarding the application of its
products as smoking cessation aides, the Company is encouraged by the positive
stance adopted by public bodies in relation to this rapidly growing product
category and believes that these statements will support the popular appeal
and marketing potential of its new range.

Chill vapour products will be manufactured to specifications that comply with
UK rules and regulations to facilitate future growth opportunities. The
Company has started a pre-sales programme with new and existing distributors
to secure placement of its products across a variety of US retail settings.
Further announcements relating to the launch of Chill Brands' vapour products
will be made in due course.

Callum Sommerton, Chief Executive Officer of Chill Brands, commented:

"We are excited to announce the planned launch of new Chill products as we
seek to capitalise on the meteoric growth of the nicotine-free vapour market.

The past few years have shown that consumers have an insurmountable appetite
for vapour products. Chill Brands intends to build a quality product range for
the scores of vapour users who are seeking a non-intoxicating, non-addictive
recreational alternative to tobacco and other nicotine products.

We have already recorded significant interest from retailers, and we are
exploring routes to commercialisation in our home markets and beyond. I am
confident that Chill CBD vapour products have exceedingly strong sales
potential and look forward to updating investors on our progress."

-ENDS-

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is an international company
concerned with the development, production, and distribution of best-in-class
hemp-derived CBD products, tobacco alternatives and other consumer packaged
goods (CPG) products. The Company operates primarily in the US, where its
products are distributed online and via some of the nation's most recognisable
convenience retail outlets. The Group's strategy is anchored around lifestyle
marketing that is designed to enhance the popularity of its products,
channelling visitors to its landmark chill.com website.

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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