Chill Brands Group PLC Product Strategy Update (4341Y)
January 03 2024 - 1:00AM
UK Regulatory
TIDMCHLL
RNS Number : 4341Y
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 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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