Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF), the CBD and smoking alternatives company, rallied 18% in early trading on Monday after it revealed a deal to sell its nicotine-free vapes in WH Smith PLC (LSE:SMWH) shops.
The agreement to stock the Chill ZERO vape products in around 150 of the retailer's sites, mostly its travel stores located in railway stations or airports, comes at a time when vaping, particularly disposable products, is coming under fire from politicians.
Last week, Prime Minister Rishi Sunak promised the Conservative party’s conference in Manchester that his government would be clamping down on underage vaping, with concern growing that the bright colours and fruity flavour of the vapes make it more enticing for young people.
Next-generation products have been a clear focus for the tobacco industry as it aims to move away from cigarette sales, with products like heated tobacco devices and oral nicotine pouches growing in popularity.
However, Chill Brands is one of the few companies exploring nicotine-free products, having shifted its focus towards vapes earlier this year.
Callum Sommerton, chief executive officer of Chill Brands, said in a statement: “This significant milestone marks the beginning of an exciting journey for the company and is a clear sign of things to come.
“We are committed to further expanding our presence in the market, developing more strategic partnerships, and continuing to deliver innovative products to consumers seeking quality alternatives to tobacco and nicotine.”
Chill Brands is trading at around 6p on Monday and is up over 206% in 2023.