Chill Brands Shares Rose 9.3% on a Positive Operations Update test

The Chill Brands Group PLC (LON: CHLL) share price rose 9.3% after issuing an operations update highlighting some of the crucial milestones achieved by the company, including the start of UK retail sales operations in August 2023 with sales to an initial 120 outlets.

The company also noted that its e-commerce website traffic has increased since it launched online vape sales. The firm’s products are already in some US pilot stores, demonstrating product sell-through even as the company remains in discussions with potential distributors.

Chill Brands also noted that it had expanded its US vapour products range to include 1,500 and 3,000 puff devices. Investors cheered the upbeat operations update as it showed that the company was progressing in its business, as evidenced by today’s rally. 

The company’s UK sales began on 7 August 2023 via an initial 120 retail outlets carrying the firm’s Chill Zero nicotine-free vapour products. The retail outlets included independent retailers, vapour category specialist stores, bars and nightclubs.  

Chill Brands is working to expand its network of retail outlets with the help of The Vaping Group Ltd, its UK sales and marketing partner. The demand for the Chill Zero products witnessed in the 120 retail outlets has underpinned discussions with national retailers and buying groups. 

The company will continue expanding its independent store footprint and satisfy repeat orders from existing retailers while continuing to seek sales with chain retailers with urgency. 

Callum Sommerton, Chief Executive Officer of Chill Brands, said: “The Chill Zero range of nicotine-free vape products is off to a great start. A successful entry into the UK and positive results from our US pilot stores reaffirm that this is a category with significant growth potential. Many stockists of the products have commented on the strong demand for nicotine-free alternatives and often highlight a lack of existing quality options on the market. There is a clear opportunity for Chill Brands to become a market leader in this space, particularly as we begin to market and sell the products to major national retailers. These conversations are progressing well, and I look forward to updating our shareholders further as our plans come to fruition.”

Chill Brands share price. 

The Chill Brands share price rallied 9.30% to trade at 4.70p, from Wednesday’s closing price of 4.30p.