Chill Brands Group PLC (LSE:CHLL, OTCQX:CHBRF) told investors it is working to concentrate on building closer ties with retail partners, under a revised distribution plan in the United States.
The company, in a statement, detailed its new preference for a direct distribution model which replaces a prior ‘master’ distribution deal with the Schrader family’s Ox Distributing LLC.
A simplified model sees the company working with retail partners equipping them with the marketing collateral, product knowledge, and on-demand sales support as it targets specific areas and demographics.
The new approach is to be combined with a wider digital strategy and a wholesale order portal, the company said.
“It is important for us to look forward to the opportunities ahead,” said Callum Sommerton, Chill Brands chief executive.
“The company benefits from a highly differentiated brand, premium quality products, and access to broad sales channels both online and via retail stores. It is time for us to capitalise on those advantages and we intend to do so through consistent execution of our digital and retail sales strategies.”
“I am grateful to Ox and the Schrader family for their support of Chill and look forward to working with them to deliver value for all shareholders."
Eric Schrader, a Chill Brands non-executive director, added: "Having supported the company as its master distributor, the Ox team and I are now pleased to transition into a new working relationship that will facilitate future growth and success for the Chill Brand.
“After launching into a difficult retail environment and enduring the COVID-19 pandemic, we are excited to continue this journey as we work to put Chill firmly on the map."