The Chill Brands Group PLC (LON: CHLL) rose 2.56% after announcing that it had started producing a new line of disposable vapour products, which it plans to launch in Q1 2023. The vape products are nicotine-free botanical e-cigarettes available in three fruit flavours.
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The company reported that the new products would be available from select retail stores and directly on its website chill.com. Investors will watch keenly to see if the new products will be popular with consumers after their launch.
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Chill Brands noted that its supplier has agreed to reduce the production price and extend the production run to allow it to fast-track the launch of the new products. Therefore, the company will not incur significant upfront costs leading up to the launch.
The lacklustre reaction from investors shows their scepticism towards the new products for various reasons. First, the CHLL share price has fallen 87.5% this year, although it appears to have recently bottomed.
The company cited data from industry researchers saying that the market for vapour products was expected to expand to US$55 billion by 2029. The company also noted that over 26 million Americans use vapour products, with the numbers growing as people shift from traditional tobacco products to e-cigarettes.
Chill Brands also noted the positive stance towards vapour products adopted by Public Health England and the American Association of Public Health Physicians. The two bodies have come out supporting vapour products instead of tobacco products.
Callum Sommerton, Chief Executive Officer of Chill Brands, commented: “We are excited to announce the planned launch of new Chill products as we seek to capitalise on the meteoric growth of the nicotine-free vapour market. The past few years have shown that consumers have an insurmountable appetite for vapour products. Chill Brands intends to build a quality product range for the scores of vapour users who are seeking a non-intoxicating, non-addictive recreational alternative to tobacco and other nicotine products.”
The company has already received interest from retailers and is exploring ways of reaching more customers.
*This is not investment advice.
Chill Brands share price.
The Chill Brands’ share price edged 2.56% higher to trade at 2.00p, rising from Tuesday’s closing price of 1.95p.
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