Chill Brands shares soar as it introduces nicotine-free vapes to UK market
( ), a producer and distributor of CBD and tobacco alternatives, announced it has entered into a contract with the Vaping Group to launch its range of nicotine-free vapour products to the UK market.
The Vaping Group is an industry specialist with a footprint in hundreds of UK vapour stores and access to tens of thousands of independent convenience stores. Chill Brands expressed confidence that the partnership would materially improve its commercial prospects and the near-term performance of its nicotine-free vapour products.
Once it has established a recurring base of revenues for Chill Brands' products in the UK, the Vaping Group intends to introduce the brand to the European market, which is currently worth £8bn.
UK sales of Chill Brands' vapour products are expected to commence during summer 2023. As part of the launch, Chill Brands will introduce an expanded range of products, including disposable devices with "puff counts" higher than those of nicotine products that are limited by tobacco restrictions.
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Chill Brands shares soared 26% as the company announced a deal to bring its brand home to the UK in a big way. The UK vaping market is estimated at over £3.5bn and forecast to reach £4.5bn by 2027. The European market is worth £8bn, with appetite for nicotine-free devices continuing to grow across both regions.
Established in 2017, the Vaping Group has helped take some the industry's most recognisable names to market. As part of the agreement, they will represent Chill Brands' vapour products through direct introductions to large retailers, category-specific chains, and independent outlets. The announcement that a wider European launch will follow once a recurring base of revenues for Chill Brands has been established in the UK is also exciting, though a timeframe or other details were not provided.
In 2019, the UK Government set an objective for England to be smoke-free by 2030, meaning only 5% of the population would smoke by then, in order to meet a wider commitment of extending healthy life expectancy by five years by 2035.
Chill's devices should help with the conversion of smokers and vape users to nicotine-free alternatives, especially as the company's new Chill Zero range can last 5 times longer than existing nicotine vapes that are limited by tobacco restrictions. Moreover, the higher "puff count" should give Chill's product a significant price advantage and come with a much reduced environmental impact.
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