Chill Brands Faces Challenges as UK Bans Disposable E-cigarettes

Business by 2FIRSTS.ai

Dec.10.2024

Chill Brands Faces Challenges as UK Bans Disposable E-cigarettes

British e-cigarette manufacturer Chill Brands faces sales impact and legal challenges following UK disposable e-cigarette ban announcement for next year.

According to a report from The Independent on December 9th, the UK e-cigarette manufacturer Chill Brands has stated that the government's upcoming ban on disposable e-cigarettes next year has already had an impact on its sales. Additionally, the company is preparing to file lawsuits against former executives for fraud and theft.

The company stated that they have already felt the impact of the new regulations coming into effect in June next year. The UK government's plan aims to create a smoke-free generation, but it has also caused retailers to reduce their interest in stocking disposable e-cigarettes, leading to a decrease in sales in the UK.

Chill Brands has announced that they will continue to sell their existing products, but they do not anticipate a significant recovery in demand for these disposable products in the UK. The company is looking to discuss with distributors to expand their products into other global markets, and they are planning to launch a range of zero-nicotine e-cigarette liquids.

The new product is designed for a reusable e-cigarette device that allows for the addition of nicotine, and is expected to launch in early 2025. At the same time, Chill Brands says it is streamlining its brand design to comply with future marketing regulations in the e-cigarette market.

Chill has stated that the release of its 2024 annual report is expected to be delayed until the first quarter of 2025, and the company has requested financial regulatory authorities to continue suspending its stock trading. Chill has mentioned that the release of the report is a "precondition" for lifting the suspension of its stock trading.

Chill Brands accuses its former two executives of fraud, corruption, and theft. A hearing is scheduled in a U.S. court for December 19th to recover assets, including website domain names.

Callum Sommerton, CEO of Chill Brands, stated that

The delay in the company's audit is disappointing for investors and all stakeholders. We are working diligently with the relevant parties to expedite the completion and release of our financial report. In the meantime, progress has been made in new product development and a new business stream has been established to support our growth goals.

References:

[1] Fewer retailers stocking disposable vapes ahead of 2025 ban, maker says

Also Read:

[1] Chill Brands Suspends Trading Due to CEO Misconduct

[2] Chill Brands CEO Suspended for Alleged Insider Trading Actions

[3] Chill Brands Group PLC Expands Sales and Partnerships

[4] Chill Brands Group Partners with Flawless for Distribution

[5] Chill Brands Faces Corporate Scandal: Domain Name Dispute

[6] Chill Brands Announces Sale of Nicotine-free E-Cigarettes at WH Smith

[7] Chill Brands Expands Sales of Nicotine-Free E-Cigarettes in UK

#Europe #Legislation #Disposable e-cigarettes #UK

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