Planned Launch of Vape Products
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
Media enquiries:
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Chill Brands Group plc |
contact@chillbrandsgroup.com |
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Allenby Capital Limited (Financial Adviser and Broker) |
+44 (0) 20 3328 5656 |
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Nick Harriss/Nick Naylor (Corporate Finance) |
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