Callum Somerton, the CEO of Chill Brands, talks to Proactive’s Thomas Warner about the partnership he has just announced to sell its nicotine-free vape products in WH Smith, one of the best-known names on the UK High Street, and in airports.
The company’s proprietary product range is already 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, but this is a first in the UK.
Sommerton also explains market and industry trends and what investors can expect in the coming months.
WH Smith deal
Proactive: Tell us about your recent deal with WH Smith and the market for nicotine-free vapes. Who's your target audience?
Sommerton: Our recent partnership with WH Smith will place our Chill Zero nicotine-free vape products in 150 of their travel stores, reaching thousands of daily travellers. Our target audience includes individuals aged 18 to 35 and beyond, aiming to provide an alternative to nicotine. Many people are looking to gradually reduce their nicotine consumption, and we want to help them transition away from traditional tobacco and nicotine products. We also cater to those who enjoy vaping socially, offering a nicotine-free alternative that doesn't create chemical dependencies.
Non-alcoholic beer comparison
Proactive: Can you draw parallels between the demand for non-alcoholic beverages and your nicotine-free vape products?
Sommerton: Absolutely. Much like non-alcoholic beer and other alternatives, our nicotine-free vapes serve as a vital option for those who want to maintain their habits without adverse effects. These products provide an alternative that allows people to enjoy the experience while avoiding the negatives associated with traditional smoking or vaping with nicotine.
Share price response
Proactive: The market response to your recent news saw a share price increase, but it's still below its previous high. Why do you think the market didn't respond even more positively?
Sommerton: There are several factors at play here. The global markets are experiencing some turbulence due to geopolitical issues, which impacts overall liquidity and investor sentiment. Additionally, investors may be waiting to see concrete evidence of our retail channel expansion and growth.
There's also recent public concern around vaping, but it's important to note that the industry is prepared to adapt to changing regulations. We've also taken steps, such as partnering with Phoenix for responsible disposal and compliance, to ensure we remain a legitimate player in the market. As we continue to expand into additional retailers and develop our channel, we're confident that investors will recognize our long-term potential.
What's next
Proactive: Beyond the WH Smith deal, what can investors expect from Chill Brands in the coming months?
Sommerton: We have an exciting roadmap ahead. While vapes remain our primary category with plans for expansion into new stores and territories, investors can also anticipate market growth for our online platform, Chill.com.
We'll introduce new brands, including those in the US and the UK, expand into additional categories such as nicotine and tobacco alternatives, alcohol alternatives, and wellness products.
We're also keeping an eye on the growing hemp products market in the US, and we aim to capitalize on this for the benefit of our shareholders and brand. As we make these additions to our platform, investors will witness transformations that define Chill.com as an e-commerce marketplace and online destination rather than just a single-brand site.
In conclusion, Chill Brands' expansion into WH Smith represents a significant milestone in its journey to provide healthier alternatives to nicotine users.
With an evolving market and a commitment to adapt to changing regulations, Chill Brands aims to be a prominent player in the industry.