Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) told investors it has now begun production of a new line of disposable vapour products which are set to go on sale in the first quarter of 2023.
The new line comprises nicotine-free botanical e-cigarette devices, in three fruit flavours, and will be sold in retail stores and online via Chill.com.
An agreement with the company’s supplier will see a reduced initial production cost and an extended production run which will allow an expedited launch without significant upfront costs, Chill Brands added.
"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," commented Chill Brands chief executive Callum Sommerton in a statement.
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, he said,
“We have already recorded significant interest from retailers, and we are exploring routes to commercialisation in our home markets and beyond. I am confident that Chill CBD vapour products have exceedingly strong sales potential and look forward to updating investors on our progress," Sommerton added.
Chill Brands described what it said is expected to be a US$55bn market for vapour products by 2029, and, highlighted that some 25mln Americans presently use vapour products.
At the same time, it said that Public Health England has previously reported that the use of vapour products is around 95% less harmful to health than smoking traditional tobacco products.
The company noted that Chill vapour products will be manufactured to specifications that comply with UK rules and regulations to facilitate future growth opportunities.
A pre-sales programme is underway with new and existing distributors to secure placement of its products across a variety of US retail settings.