Chill Brands Group (CHLL), a company producing and distributing CBD, tobacco alternatives, and other consumer packaged goods products, has received an initial purchase order for Chill Brands' nicotine-free vapour products, Chill Zero, from a distributor in Florida and the surrounding states.
The announcement comes after the company told investors in December it had begun production of a new line of disposable vapour products which were set to go on sale in the first quarter of 2023.
Chill Zero is also under consideration by numerous retail buyers who represent convenience store chains in the US. Subject to confirmation of final purchase orders, Chill Brands said it expects to have placed its entire first production run and is working with manufacturing partners to prepare for a reorder.
Chill Brands also announced taking steps to enable online sales of its vapour products via the Chill.com website. The company highlighted that the 2019 US Preventing All Cigarette Trafficking Act prevents the US Postal Service from shipping vapour products regardless of their nicotine content, but Chill Brands has procured several relationships with specialist carriers that will enable the Company to provide compliant home delivery of vapour products sold online via Chill.com. As such, the company is tapping into a sizeable opportunity to target online consumers who may be underserved by the wider vapour industry.
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The news of Chill Brands’ nicotine-free vapour products launching in the US demonstrates it is well-positioned to capitalise on a market growing at an exponential rate. Chill Brands has previously reported that the vapour products market is projected to reach US$55 billion by 2029, and, highlighted that some 25 million Americans presently use vapour products.
Furthermore, a growing number of consumers are now looking for alternatives that offer the same flavours, sensations, and habits that they enjoy but without the presence of addictive substances such as nicotine, the consumption of which has been tied to an increase in blood pressure and heart rate. As a result, Chill Brands’ vapour products are poised to offer consumers a healthier alternative to both smoking and nicotine vapes.
Looking ahead, the launch of Chill Brands' vapour products is set to become a significant contributor to its sales and revenue during 2023. In addition, the expansion of its retail distribution network, and the establishment of a scalable product marketplace on Chill.com are also expected to improve revenue prospects in the year ahead.
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