REG - Chill Brands Group - Response to Government Proposals

Chill BrandsAnnouncement

29/01/2024 07:00

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RNS Number : 1927B  Chill Brands Group PLC  29 January 2024

29 January 2024

Chill Brands Group plc

("Chill Brands" or the "Company")

Response to Government Proposals

Chill Brands Group, the consumer packaged-goods distribution company, responds
to proposals published by the UK Government relating to the regulation of
disposable vape products.

The Company notes that the Government proposes to introduce legislation that,
amongst other things, would prohibit the sale of disposable vape products. The
Government has not yet announced when its proposed measures may be introduced,
however it has been reported that retailers will be given a six month
implementation period once the relevant legislative process is complete. There
can be no guarantee that these proposals will therefore be enacted in their
current form, but current indications are for changes coming into force during
Q4 2024 or 2025.

Chill Brands is committed to strict compliance with all relevant laws and the
Company's existing nicotine-free vape products are differentiated through the
inclusion of USB-C recharging ports. This feature sets Chill Brands' vape
product apart from more commonplace disposable options, providing for a longer
period of use by consumers.

Chill Brands is already preparing to launch a fully compliant reusable pod
system vapour device and will accelerate its efforts to bring this product to
market. The Company will work with its existing contracted retailers to
prepare them to stock this range extension while they continue to sell through
the existing range of Chill ZERO products.

As part of this range extension, the Company intends to introduce products
that will provide users with a means to gradually reduce their nicotine
intake. Chill Brands' expansion into the nicotine category is expected to
dramatically increase the size of the total addressable market served by the
Company's products.

A recent study conducted by University College London (UCL) and funded by
Cancer Research UK showed that a ban on disposable vapes would adversely
affect millions of UK adults. This study adds to a growing body of evidence
that clearly demonstrates the important role played by disposable vapes as a
smoking cessation tool. It is expected that organisations including Action on
Smoking and Health (ASH), the UK Vape Industry Association (UKVIA) and other
bodies will continue to make strong representations to the Government
advocating for the continued availability of disposable products while
engaging on alternative policy proposals that focus on the protection of
public health.

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

"The vaping landscape is constantly evolving, creating opportunities for
businesses that are able to navigate the regulatory environment. The Chill
brand has gained rapid traction with the support of major retailers, and I am
confident that it will continue to do so as we move forward with our plans to
launch reusable pod system vapes.

Chill Brands Group is an agile company, and we are prepared to adjust to any
legislation that may be enacted. In the meantime, our existing high-puff count
and rechargeable devices will continue to be sold by US and UK retailers who
have demonstrated a strong appetite for products brought to market under the
Chill brand."

-ENDS-

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 leading retailers in the US and UK and includes
nicotine-free 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/Lauren Wright (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

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