THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

18 May 2023

Chill Brands Group plc

("Chill Brands" or the "Company")

UK Sales and Distribution Partnership

Chill Brands Group, the international consumer packaged goods company, is pleased to announce that it has entered into a contract with a leading sales, distribution and marketing agent to launch its range of nicotine-free vapour products to the UK market.

The Vaping Group (www.vapinggroup.co.uk) is a full-service industry specialist with a footprint in hundreds of UK vapour stores and access to tens of thousands of independent convenience stores. 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 Company is confident that this partnership will significantly improve its commercial prospects and the near-term performance of its nicotine-free vapour products range. The Vaping Group acts on behalf of some of the world's leading vapour brands and has previously helped to take some of the industry's most recognisable names to market.

The UK vaping market is estimated to be worth in excess of GBP £3.5 billion and is forecasted to reach almost GBP £4.5 billion by 2027. Once a recurring base of revenues has been established for Chill Brands' products in the UK, The Vaping Group intends to introduce the brand to the European market which is currently worth in excess of GBP £8 billion. Appetite for nicotine-free devices continues to grow across both geographies.

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 vapour products including disposable devices with puff counts that cannot be replicated in equivalent nicotine devices due to tobacco restrictions.

Mike Shaw, Managing Director of the Vaping Group, said: "The opportunity to support Chill Brands with the UK launch of their vaping devices is not only very exciting but also incredibly timely. Regulators and industry peers are crying out for answers to the issues surrounding sustainability and social responsibility. While Chill's devices will inevitably help with the full conversion of smokers and vape users to nicotine free alternatives, the fact that they may last up to five times as long as existing nicotine vapes will also result in a reduced environmental impact. This enlarged puff count also ensures Chill Zero can remain competitive at a higher recommended retail price, elevating the brand beyond the "pocket money" spend category while maintaining attractive margins.

My team and I are thrilled to be working with Chill Brands and look forward to the growth of the brand and its products within the UK and Europe."

Callum Sommerton, CEO of Chill Brands, said: "We are excited to be bringing the Chill brand home to the UK and have great hopes for our nicotine-free vapour products in the domestic market.

The UK has adopted a uniquely constructive approach to the regulation and promotion of vapour products. Government agencies understand the importance of harm reduction and have repeatedly acknowledged the potential of vapour products as genuine tobacco alternatives. 

As the target for a smoke-free England by 2030 comes into view, the chance for Chill Brands to balance social responsibility with sizeable commercial opportunities could not be clearer. With the support of The Vaping Group, we are confident that Chill Zero devices can become the UK's leading name for nicotine-free vapour devices."

About The Vaping Group 

Established in 2017, The Vaping Group is a multi-service marketing and sales agency specialising on the rapidly emerging market for vapour products. During the last six years, The Vaping Group has provided support in relation to brand activations, growth marketing, trade advertising, sales and fulfilment for many of the world's leading vapour companies. The Group benefits from close connections to leading retailers and industry operators both in the UK and overseas, creating value by acting as a seamless extension to the teams of its clients. For more information, visit www.vapinggroup.co.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.