Shares in manufacturer Chill Brands plunge as it hits back at Sunak plans to ban disposable vapes
Shares in the vape and CBD products manufacturer Chill Brands Group dived as much as 35 per cent on Monday despite it saying its existing vape products are excluded from government plans to ban disposable vapes.
Chill Brands released a statement on Monday saying its existing nicotine-free vape products do not count as disposable e-cigarettes because they have USB-C recharging ports.
“This feature sets Chill Brands’ vape product apart from more commonplace disposable options, providing for a longer period of use by consumers,” the London listed consumer goods company explained.
On Monday morning Prime Minister Rishi Sunak is set to announce a nationwide ban on disposable and single-use vapes as the government clamps down on the e-cigarettes.
Chill Brands’ market value fell by over £3m, while rival vape business Supreme also saw shares drop around 12 per cent, wiping £10m off its valuation.
On Monday afternoon, Chill shares were still down around 27 per cent. But Supreme rose as much as seven per cent after it released a statement announcing its trading is “significantly ahead” of current full year expectations and proposed a £1m share buyback programme.
Chill Brands also said it is gearing up to roll out a “reusable pod system vapour device” and will ramp up efforts to put this product on shelves.
Chief executive of Chill Brands, Callum Sommerton, said: “The vaping landscape is constantly evolving, creating opportunities for businesses that are able to navigate the regulatory environment.
“Chill Brands Group is an agile company, and we are prepared to adjust to any legislation that may be enacted.”
The proposed ban is expected to enter into force at the end of 2024 or the start of 2025. It comes as the government is attempting to create the first smoke-free generation.