TIDMCHLL
RNS Number : 9546V
Chill Brands Group PLC
07 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
7 December 2023
Chill Brands Group plc
("Chill Brands" or the "Company")
Trading Update
Chill Brands, the consumer packaged-goods distribution company,
is pleased to provide an update on its trading, focussed on
positive developments around its Chill ZERO nicotine free vapes and
the Chill.com marketplace.
Highlights
-- Purchase of vape products by leading US retailer with launch into seven new states.
-- Sales made to more than 475 independent retail stores since UK launch during August 2023.
-- Late stage negotiations to place Chill ZERO products in a major UK retail chain.
-- Expansion of e-commerce footprint with sales growth on Amazon.co.uk.
-- Growth of Chill.com marketplace platform with more than 40 external brands listed.
Purchase of Vapour Products by Leading US Retailer
Chill Brands has received a purchase order for its nicotine-free
vape products from Smoker Friendly, the largest dedicated chain of
smoke shops in the United States. Starting in 2024, Chill ZERO
products will enter an initial 60 stores of Smoker Friendly's many
US locations.
The agreement to launch with Smoker Friendly follows the
Company's pilot phase which provided initial sales data
demonstrating clear consumer demand for nicotine-free vape
products. The pilot scheme saw Chill Brands' products enter stores
in Colorado, Arizona, Florida and Texas.
From early 2024, Chill ZERO products will be stocked by select
Smoker Friendly stores in Colorado, Wyoming, Montana, North
Carolina, Florida, Missouri, Arkansas, Tennessee and Indiana. These
stores will carry all 13 existing vape product variations across
the 600, 1,500 and 3,000 puff ranges.
Sean Musgrave, vapour category director for Smoker Friendly,
said: "We're excited to work with Chill Brands and look forward to
trialling the Chill ZERO products. We are seeing demand grow with
respect to nicotine-free vape products. Our customers are looking
for a product that has no nicotine, yet still delivers the
satisfaction of vaping, and I feel that Chill ZERO can satisfy that
request."
Growth of UK Retail Channel
Since releasing its vape products to the UK market during August
2023, Chill Brands has now made sales to more than 475 independent
retail stores throughout the UK. These locations have been secured
through the Company's partnership with The Vaping Group and include
franchised branches of Premier, Spar and Nisa Local.
Having compiled four months of sales data, the Company is
pleased to report that it has observed a positive trend in reorder
rates from independent retailers. Stores placing reorders are doing
so within around two months of first carrying the brand (depending
on their initial purchase amount), reflecting continued demand for
Chill ZERO nicotine-free vape products. The Company will seek to
maintain strong reorder rates and a rapid replenishment cycle as it
scales its distribution to new stores.
In addition to these independent stores, and as announced on 9
October 2023, the Company has received an order that will see its
Chill ZERO products stocked in an initial 150 of WHSmith's 1,700
stores. Chill products are expected to enter WHSmith travel stores
in the near future and further information will be provided
following their ranging date.
In addition, Chill Brands is in advanced negotiations to place
Chill ZERO in another major UK retailer and will provide a further
update upon confirming an order, which is expected during
December.
E-Commerce Update
As announced on 12 October 2023, Chill ZERO products are now
available for purchase by UK consumers on Amazon Prime. Since their
launch on the platform in late October, Chill ZERO listings have
gained thousands of monthly views with a sustained weekly increase
in traffic and first page rankings for 'nicotine free vape' and
other key search terms. Purchases have now been made by more than
200 individual customers and the Company expects sales of its
products on the Amazon platform to continue to expand in 2024.
Further to announcements made during November 2023, Chill Brands
has expanded its B2B distribution network through product listings
with leading wholesale operators who have a combined reach of more
than 9,000 business customers. Flawless (
www.flawlessvapedistro.co.uk ) is the UK's leading distributor to
category specialist vape stores, while Vape Local (
www.vapelocal.co.uk , operated by Phoenix 2 Retail) is one of the
country's leading suppliers to convenience store accounts. These
listings are intended to facilitate new business-to-business sales,
introducing the Company's products to a wider network of
retailers.
The Company is pleased to note that its vape products are now
carried by a number of additional consumer-focused category
specialist e-commerce sites including oceanvape.co.uk,
totally-vapour.co.uk, and royalvapes.co.uk. Certain products are
also carried by dyspensr.com in the United States. These product
listings serve to expose Chill Brands' products to a broad number
of consumers across different demographics and geographies,
establishing brand recognition and creating further sales
opportunities.
Chill.com Marketplace Update
The Company has also seen substantial growth of its Chill.com
marketplace website which offers a curated collection of health,
wellness and alternative products. Chill.com now hosts 44 external
brands between its US and UK-focused subdomains.
Since Chill Brands' last update on the Chill.com marketplace,
new brands joining the US site have included NUBU infused Manuka
honey, Peak State nootropics coffee, Perfy superfood soda, AWKN
hangover prevention supplements, Hempress Hygienics female care
products, and More Labs, the brand behind the leading US
electrolyte beverage Morning Recovery.
In the UK, new brands joining Chill.com have included Yumi
chewable vitamins, Quanna sexual wellness, Wild natural deodorants,
and Goodrays, one of the UK's leading CBD beverage brands.
Chill Brands continues to build a pipeline of new brands and
products that will periodically join the Chill.com website. During
2024, the Company intends to execute numerous marketing campaigns
and event activations with the intention of driving new customer
traffic to the growing website.
Callum Sommerton, Chief Executive Officer of Chill Brands, said:
"The Company has come a long way during 2023 and I am incredibly
proud of the significant milestones we have achieved. The coming
months will see us take action on our plans to expand the retail
footprint of our Chill ZERO products, secure new listings with
major retailers, and further define our Chill.com marketplace as a
go-to destination for health and wellness including alternative
products featuring hemp, nootropics, adaptogens and other popular
natural ingredients.
Having laid firm foundations from which to grow, I am confident
that Chill Brands has strong growth potential and we are keen to
deliver value as we seize the opportunities ahead of us."
-ENDS-
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
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