Product Strategy Update

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

Media enquiries:

Chill Brands Group plc	[e-mail]
Allenby Capital Limited (Financial Adviser and Broker)	[phone]
Nick Harriss/Nick Naylor/Lauren Wright (Corporate Finance) Kelly Gardiner (Equity Sales)

 

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