Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) has been appointed as the exclusive UK distributor for ELF Nicotine Pouches, strengthening its position in one of the fastest-growing segments of the tobacco alternatives market.
The London-listed company will distribute the product through its Chill Connect division, which focuses on fast-moving consumer goods. The appointment is due to begin this month and is expected to boost revenue during the next financial year.
ELF Nicotine Pouches are produced by Shenzhen iMiracle Technology, the Chinese manufacturer behind vape brands ELFBAR and Lost Mary.
As part of the new partnership, Chill Brands will also distribute those two product lines across its UK convenience retail network.
The nicotine pouch market is expanding rapidly. Retail sales in the UK rose 82% last year to £131 million, and the market is expected to surpass £200 million in 2025.
Some analysts believe growth could continue at an annual rate of nearly 40% until the end of the decade.
Callum Sommerton, chief executive of Chill Brands, said: "This master distribution agreement represents a significant step forward for Chill Brands and a major endorsement of our Chill Connect distribution platform.”
He added: “ELF Nicotine Pouches are one of the most exciting new entrants to the reduced-risk category. Alongside this, the ELFBAR and Lost Mary vape ranges are already among the most sought-after products in the UK market.”
Nicotine pouches are smokeless, tobacco-free products that sit under the lip and deliver nicotine without combustion.
As part of the UK launch, Chill Brands will roll out in-store displays, sampling campaigns and other promotional events designed to raise awareness and accelerate adoption.
The deal marks another milestone in Chill Brands’ pivot towards retail distribution.
It positions the group as a key route-to-market provider for international brands looking to enter or expand in the UK’s convenience and impulse-buy sectors.