REG - Chill Brands Group - Product Strategy Update

Chill BrandsAnnouncement

03/01/2024 07:15

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RNS Number : 4341Y  Chill Brands Group PLC  03 January 2024

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

3 January 2024

Chill Brands Group plc

("Chill Brands" or the "Company")

Product Strategy Update

Chill Brands, the consumer packaged-goods distribution company, outlines
product launch plans and regulatory initiatives for Q1 2024.

Q1 2024 Launch Plans

As previously announced, Chill Brands received a number of material purchase
orders during Q4 2023. The Company is in the process of fulfilling those
purchase orders and expects to have delivered all initial inventory during
January 2024.

Chill ZERO nicotine-free vape products will launch into initial WH Smith
travel locations, Morrisons stores (the top five UK supermarket announced on
20 December 2023), and roadside retail stores operating on Shell, BP and Esso
branded forecourts during January 2024 with the roll out continuing
incrementally throughout Q1. The products will also launch into Smoker
Friendly stores in nine US states with in-store sampling activations.

The Company will further develop its distribution network of independent
stores while continuing to service existing accounts, supporting sales rates
with new point of sale displays, out-of-home advertising and other marketing
campaigns.

Discussions are underway for the launch of Chill vapour products into select
European markets and the Company expects to make significant progress during
the first half of the year.

Regulatory Initiatives

As noted in its AGM Statement of 19 September 2023, the Company acknowledges
that regulatory authorities are considering how to effectively balance the
positive impact of vaping as a harm reduction tool with the need to protect
children and the environment. Chill Brands is committed to building a socially
and environmentally responsible business and will therefore take the following
proactive steps:

1.  Participation in Recycling Scheme. As part of its 2024 product launch
programme, the Company is participating in a recycling scheme that will equip
hundreds of retail locations with dedicated recycling units to facilitate the
responsible disposal of vape products. The scheme will be jointly backed by
participating retailers, distributors, and brands.

2.    Responsible Retailer Engagement. As the Company's distribution
network expands, its sales and distribution partners will conduct compliance
visits to educate and support retailers with a particular focus on appropriate
merchandising and age verification to ensure express compliance with existing
and future regulations at all points of the supply chain.

3.  Conscious Design and Flavour Choices. Chill products are solely intended
for adult consumers and the Company will continue to follow this strategy with
all future launches. The Company will not launch any products with
inappropriate flavours (such as confectionary) or that feature design elements
that reflect immature themes.

The Company will continue to engage with its partners, industry bodies, and
regulatory authorities to help develop a responsible and conscientious vaping
industry with a view to providing a genuine alternative to tobacco products.

New Product Development

The Company's sales and distribution partners have identified significant
retail demand for additional vaping products to be marketed under the Chill
brand. The Company is therefore developing an expanded range of reusable and
rechargeable products while establishing a rapid route-to-market plan for
these range extensions.

Further information relating to new product development will be provided when
appropriate.

Callum Sommerton, Chief Executive Officer of Chill Brands, said: "We have an
exciting period ahead as our products enter new retail outlets on both sides
of the Atlantic. We have established a strong distribution network and look
forward to further growth during 2024.

As our operations expand, we are committed to adopting a responsible approach
to sales of vape products. In an ever-changing industry, staying ahead means
not only complying with regulations but working closely with our distributors
and being led by demand in the market to future-proof our business.

I am confident that our existing and future products will continue to capture
market share as we deploy our strategy during 2024."

-ENDS-

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is an international consumer
packaged goods company focused on the development, marketing and distribution
of wellness and recreational products. The Company's proprietary nicotine-free
vapour products cater to the rapidly growing market for tobacco alternatives
and are distributed by some of leading retail stores in the US and UK. 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/Lauren Wright (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

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