TIDMCHLL
RNS Number : 6976L
Chill Brands Group PLC
07 September 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
7 September 2023
Chill Brands Group plc
("Chill Brands" or the "Company")
Trading Update
Chill Brands Group, the consumer packaged-goods distribution
company, is pleased to provide an update on its operations.
Overview
-- UK retail sales operations began in August 2023 with sales to an initial 120 outlets.
-- Increase in e-commerce website traffic since commencement of online vape sales.
-- US pilot stores demonstrating product sell-through, with
discussions with distributors progressing.
-- US vapour products range expanded to include 1,500 and 3,000 puff devices.
UK Sales Operations Commence
UK sales of Chill Zero nicotine-free vapour products commenced
on 7 August 2023. Initial sales have been made to 120 retail
outlets including independent retailers, vapour category specialist
stores, bars and nightclubs. The Company continues to activate
additional outlets with the support of its UK sales and marketing
partner, The Vaping Group Ltd.
The appetite for Chill Zero products demonstrated by these
outlets has facilitated discussions with national retailers and
buying groups. Chill Brands will continue to expand its independent
store footprint and satisfy repeat orders from existing stockists
while seeking to launch sales with chain retailers as soon as
possible. Further information regarding major retail launches will
be provided when appropriate.
The Company has noted a significant increase in traffic to the
Chill.com UK site since online sales of its nicotine free vapour
products commenced on 10 August 2023. This has resulted in an
uplift in marketplace product sales as a proportion of Chill Zero
vapour products customers have also purchased from the third party
brands marketed on the site. The Company continues to expand the
range of products available on the Chill.com website and has most
recently signed further agreements with multiple brands wishing to
launch on the US-facing site.
Update on US Vape Pilot Stores
Further to the US launch of Chill Zero nicotine-free vapour
products earlier in 2023, the Company has been working with pilot
stores to establish product market fit and sales data. This pilot
programme has resulted in the activation of select stores within
the Colorado, Arizona, Florida and Texas markets.
The pilot stores have delivered positive results, including
encouraging sell through rates that demonstrate healthy consumer
demand for the products. Reorders for newly activated stores are
occurring within an average of four to five weeks and numerous
multi-store operators have expressed interest in stocking the
product range across their full store footprint.
The data gathered from the pilot programme has enabled the
Company to commence discussions with larger distribution partners.
This includes the buyers of a national smoke shop chain who,
following August trade show attendances, have given positive
indications regarding their intentions to stock Chill Zero
products. Based on these discussions the Company is actively
preparing to introduce its 1,500 and 3,000 puff devices into the US
market.
Callum Sommerton, Chief Executive Officer of Chill Brands, said:
"The Chill Zero range of nicotine-free vape products is off to a
great start. A successful entry into the UK and positive results
from our US pilot stores reaffirm that this is a category with
significant growth potential.
Many stockists of the products have commented on strong demand
for nicotine-free alternatives and often highlight a lack of
existing quality options on the market. There is a clear
opportunity for Chill Brands to become a market leader in this
space, particularly as we begin to market and sell the products to
major national retailers. These conversations are progressing well
and I look forward to updating our shareholders further as our
plans come to fruition."
-ENDS-
About Chill Zero Vapour Products
Chill Zero vapour products are flavoured, disposable personal
diffusers. They offer a similar experience to traditional vaping
products but without the addictive effects of tobacco or nicotine.
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.
Research suggests that the market for vapour products could
exceed US $55 billion by 2029, with more than 26 million Americans
already using vaping devices both recreationally and as a
functional alternative to traditional tobacco products.
Chill Zero vapour products are available in a range of sizes and
flavours including 1,500 and 3,000 puff variants that last longer
than the conventional 600 puff products marketed by
competitors.
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
Media enquiries:
Chill Brands Group plc contact@chillbrandsgroup.com
Allenby Capital Limited (Financial
Adviser and Broker) +44 (0) 20 3328 5656
Nick Harriss/Nick Naylor/Lauren Wright
(Corporate Finance)
Kelly Gardiner (Equity Sales)
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END
TSTSSUSIWEDSELU
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September 07, 2023 02:00 ET (06:00 GMT)
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