Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) has set out the next phase of its turnaround strategy, saying it has successfully transformed from an own-brand business into a diversified distributor and services group working with some of the world’s largest consumer goods companies.
The London-listed firm said it had “reinvented itself” over the past year, shedding loss-making operations in the US and focusing on the UK and European markets, where it now represents a growing list of global and emerging brands.
The company’s new model combines distribution, consulting and retail support services, giving it exposure to several fast-growing categories, including nicotine alternatives and wellness products.
Chief executive Callum Sommerton said: “Chill Brands today is a very different company to the one it was at the start of 2024. We have evolved into a diversified distribution and services business with multiple routes to market, supported by new infrastructure and a sharper consumer proposition on Chill.com.
"Through our work with both high-growth start-ups and established global partners, we are building a scalable model that is agile and positioned for long-term growth.”
Over the past 12 months, Chill Brands has closed its underperforming US arm, a move expected to save more than $650,000 a year, and signed new sales and distribution agreements with RELX and other leading names in the nicotine products sector.
It has also entered into a partnership with SYP Global to develop new nicotine delivery technology.
The company has launched a warehousing and fulfilment hub in northern England, which it says will reduce logistics costs and improve service to retailers.
It plans to introduce an online wholesale platform, Chill Connect, later this year, allowing independent convenience stores to order products directly for delivery, a move aimed at replacing traditional cash-and-carry channels and giving Chill real-time data on buying trends.
Chill also intends to establish a trade compliance division to help brand partners manage product placement and promotional activity in major retailers.
The team would conduct in-store visits to monitor merchandising, stock levels and shelf presentation, helping brands get more value from their retail listings.
The group’s online marketplace, Chill.com, is being repositioned around stress management, with product ranges divided into three categories, Calm, Power and Balance, focused respectively on relaxation, performance and general wellbeing.
The site will move away from its earlier broad wellness offering to target a more clearly defined niche, which the company says will make marketing more efficient and help build customer loyalty.
To improve the customer experience, Chill is trialling in-house fulfilment for Chill.com orders, allowing it to consolidate deliveries and create bundled offers that combine complementary products.
The company has increased its spending on online advertising and influencer partnerships to attract traffic and encourage repeat business.
The shift to a distribution-led model marks a decisive change in direction for Chill Brands, which previously marketed its own range of cannabidiol and nicotine-free vape products.
It now earns income from both service retainers and product sales, and believes its new structure offers greater resilience and scalability by spreading risk across multiple categories and brand partnerships.
Sommerton said the company was now focused on execution, adding: “Chill Brands did not just survive, it reinvented itself, emerging with a stronger model, new capabilities as a services business, and the confidence of global brand partners who see value in our platform.”