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

9 February 2022

Chill Brands Group plc

("Chill Brands" or the "Company")

Chill Brands Group Partners with Disruptive Micro-Fulfilment Provider, Fabric, to Enable Sustainable Same- and Next-Day Delivery

(Grand Junction, CO) Chill Brands Group the international consumer packaged goods company, is pleased to announce that it has finalised a landmark US product procurement partnership with the automated micro-fulfilment company, Fabric.

The partnership will place Chill Brands' growing line-up of CBD, tobacco-alternative, and lifestyle products into Fabric micro-fulfilment centres ("MFCs") across the United States. These innovative distribution hubs use robotics to build sustainable same and next day delivery capabilities that will support Chill Brands' ambitious e-commerce expansion plans in the future.

As part of the deal, once fully deployed, all wholesale retail and direct-to-consumer orders made via Chill.com will be picked and fulfilled at automated robotic pick stations from a Fabric MFC. Fabric will then leverage geographical and logistical data to identify the needs and locations of Chill Brands' customers, providing for future integration into additional MFCs throughout the US. This model will provide Chill Brands with enhanced business intelligence to sustainably optimise delivery times.

Chill Brands joins Walmart, Instacart and a host of other national brands working with Fabric to gain a competitive e-commerce advantage and exceed consumer expectations for quick delivery. The deal will transform how the Company delivers its lifestyle consumer products and provide a sustainable, best-in-class order and delivery service that is befitting of the premier Chill.com domain.

"Our agreement with Fabric provides Chill customers with the flexibility and freedom they demand and deserve.  With robots at Fabric picking and procuring our orders, this partnership will mark Chill.com out as an efficient and innovative brand of the future," said Chill Brands Co-CEO and founder, Trevor Taylor.

"Fabric's vision is to enable brands like Chill to deliver exceptional customer experiences by bringing them closer to their customers than ever before," said Colin Coggins, COO, Fabric. "Through our intelligent network of MFCs in today's dense urban commerce centres, Fabric helps brands quickly and sustainably meet their customers where they are."

-ENDS-

About Chill Brands Group

Chill Brands Group plc is an international company focused on 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 recognizable 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.

About Fabric

Fabric is a retail technology company that enables exceptional customer experiences from click to delivery. By combining intelligent robotic fulfilment with local last-mile operations, Fabric is redefining how supply chains work. The company's proprietary mesh network and micro-fulfilment technologies bring brands closer to their customers - unlocking the insights to place local inventory in the right place, at the right time. Fabric is running micro-fulfilment operations for grocery and consumer brands throughout the US and Israel, and will expand to additional major U.S. centres of commerce in the coming year.  Founded in 2015, Fabric is backed by leading investors including Temasek, Canada Pension Plan Investment Board (CPP Investments), Corner Ventures, Playground Ventures, Princeville Capital, Innovation Endeavors, Aleph, and others. Fabric is headquartered in New York City with main offices in Tel Aviv and Atlanta, and has over 300 team members globally.

Publication on website

A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com

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