REG - Chill Brands Group - UK Sales and Distribution Partnership

Chill BrandsAnnouncement

18/05/2023 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230518:nRSR8624Za&default-theme=true

RNS Number : 8624Z  Chill Brands Group PLC  18 May 2023

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

 

18 May 2023

 

Chill Brands Group plc

("Chill Brands" or the "Company")

 

UK Sales and Distribution Partnership

 

Chill Brands Group, the international consumer packaged goods company, is
pleased to announce that it has entered into a contract with a leading sales,
distribution and marketing agent to launch its range of nicotine-free vapour
products to the UK market.

 

The Vaping Group (www.vapinggroup.co.uk (http://www.vapinggroup.co.uk) ) is a
full-service industry specialist with a footprint in hundreds of UK vapour
stores and access to tens of thousands of independent convenience stores. As
part of the agreement, they will represent Chill Brands' vapour products
through direct introductions to large retailers, category-specific chains, and
independent outlets.

 

The Company is confident that this partnership will significantly improve its
commercial prospects and the near-term performance of its nicotine-free vapour
products range. The Vaping Group acts on behalf of some of the world's leading
vapour brands and has previously helped to take some of the industry's most
recognisable names to market.

 

The UK vaping market is estimated to be worth in excess of GBP £3.5 billion
and is forecasted to reach almost GBP £4.5 billion by 2027. Once a recurring
base of revenues has been established for Chill Brands' products in the UK,
The Vaping Group intends to introduce the brand to the European market which
is currently worth in excess of GBP £8 billion. Appetite for nicotine-free
devices continues to grow across both geographies.

 

UK sales of Chill Brands' vapour products are expected to commence during
Summer 2023. As part of the launch, Chill Brands will introduce an expanded
range of vapour products including disposable devices with puff counts that
cannot be replicated in equivalent nicotine devices due to tobacco
restrictions.

 

Mike Shaw, Managing Director of the Vaping Group, said: "The opportunity to
support Chill Brands with the UK launch of their vaping devices is not only
very exciting but also incredibly timely. Regulators and industry peers are
crying out for answers to the issues surrounding sustainability and social
responsibility. While Chill's devices will inevitably help with the full
conversion of smokers and vape users to nicotine free alternatives, the fact
that they may last up to five times as long as existing nicotine vapes will
also result in a reduced environmental impact. This enlarged puff count also
ensures Chill Zero can remain competitive at a higher recommended retail
price, elevating the brand beyond the "pocket money" spend category while
maintaining attractive margins.

 

My team and I are thrilled to be working with Chill Brands and look forward to
the growth of the brand and its products within the UK and Europe."

 

Callum Sommerton, CEO of Chill Brands, said: "We are excited to be bringing
the Chill brand home to the UK and have great hopes for our nicotine-free
vapour products in the domestic market.

 

The UK has adopted a uniquely constructive approach to the regulation and
promotion of vapour products. Government agencies understand the importance of
harm reduction and have repeatedly acknowledged the potential of vapour
products as genuine tobacco alternatives.

 

As the target for a smoke-free England by 2030 comes into view, the chance for
Chill Brands to balance social responsibility with sizeable commercial
opportunities could not be clearer. With the support of The Vaping Group, we
are confident that Chill Zero devices can become the UK's leading name for
nicotine-free vapour devices."

 

About The Vaping Group

 

Established in 2017, The Vaping Group is a multi-service marketing and sales
agency specialising on the rapidly emerging market for vapour products. During
the last six years, The Vaping Group has provided support in relation to brand
activations, growth marketing, trade advertising, sales and fulfilment for
many of the world's leading vapour companies. The Group benefits from close
connections to leading retailers and industry operators both in the UK and
overseas, creating value by acting as a seamless extension to the teams of its
clients. For more information, visit www.vapinggroup.co.uk
(http://www.vapinggroup.co.uk)

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTGLGDUXDBDGXI