THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
19 September 2023
Chill Brands Group plc
("Chill Brands" or the "Company")
Chill Brands Group, the consumer packaged-goods distribution company, will hold its Annual General Meeting ("AGM") today at 3.00pm (BST). At the AGM the Company's Chief Executive Officer, Callum Sommerton, will make the following statement:
"We have once again reached our AGM after what has been an exciting transitional year for the Company.
A highlight of the year has been the relaunch of the Chill.com website. The platform has undergone a significant transformation and is evolving into a marketplace for wellness products, natural supplements, and reduced harm alternatives. Through this marketplace, we will offer a curated selection of products that contribute to the overall well-being of our customers, delivering the social and recreational benefits they enjoy while minimising the potential harm associated with traditional substances like tobacco and alcohol.
The marketplace strategy enables us to diversify our offering and explore new opportunities without adopting the financial risk of product development or inventory acquisition across multiple categories. We expect this to become a sustained revenue centre as the roster of brands available to purchase expands and the number of visitors grows.
We have also released our nicotine free vapour products in the US and, most recently, in the UK. The 'Chill ZERO' range of products has received an exceptionally warm reception from consumers and pilot stores, with encouraging sell through rates that clearly demonstrate product market fit. This initial success has opened the door to discussions with larger retailers and distributors. I look forward to sharing further information on these developments in the near future.
While I am keen to highlight the Company's positive outlook and progress over the past 12 months, it would be remiss of me to not also take this opportunity to address recent media speculation regarding the legal status of disposable vape products in the UK.
Regardless of the manner in which it has been reported by some outlets, it is important to emphasise that as of now, no formal ban on disposable vapes has been proposed or enacted. While we acknowledge the importance of staying attuned to coverage of regulation in our industry, it is crucial to understand that any proposals related to product bans would be subject to a rigorous formal consultation process.
As a Company we welcome measures to improve industry social responsibility and reduce the prevalence of underage vaping. It is clearly important that steps are taken to safeguard children and maximise the use of vape recycling schemes that are already in place across many areas of the UK.
Despite the barrage of press interest over recent days, our discussions with retailers remain ongoing and constructive. We value the strong partnerships we are building and will work actively with others in the industry to navigate any potential regulatory challenges to ensure the continued availability of vaping products that have been instrumental in reducing the prevalence of smoking. It remains a key priority of the Government to deliver on the target of a smoke-free nation by 2030 and combustible tobacco products continue to claim the lives of some 220 UK residents every day.
While media speculation can be unsettling, our shareholders can take comfort that the business is agile and well-equipped to accommodate any regulatory changes that come to pass. Independent of these developments, we have already worked with our manufacturing partners to design discreet reusable vapour devices. These rechargeable devices mirror the look and feel of a disposable vape but accommodate pre-filled e-liquid cartridges that can be replaced at will without the need to dispose of the battery unit.
We will release further information regarding these new devices in due course, but can confirm that we intend to extend and diversify our range of vapour products regardless of any regulatory changes. For now, our aggressive growth plans continue unchanged and we are proud to fulfil orders to new retail stores on a daily basis.
In closing, I want to express gratitude to our valued shareholders for your ongoing support of the Company. It is your belief in Chill Brands' vision that propels us forward and we are committed to delivering value on your investment as our journey of growth continues."
About Chill Zero Vapour Products
Chill Zero vapour products are flavoured, disposable personal diffusers. They offer a similar experience to traditional vaping products without the addictive effects of nicotine or the harmful qualities of combustible tobacco products. They appeal to a wide range of consumers including those who wish to quit smoking or reduce their nicotine intake, as well as those who enjoy the flavours, sensation, and social aspect of using vapour products.
Chill Zero vapour products are available in a range of sizes and flavours including 600, 1,500 and rechargeable 3,000 puff variants sold to customers in the US and 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.
Publication on website
A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com
Chill Brands Group plc
Allenby Capital Limited (Financial Adviser and Broker)
+44 (0) 20 3328 5656
Nick Harriss/Nick Naylor/Lauren Wright (Corporate Finance)