Chill appointed Distributor - ELF Nicotine Pouches

Chill Brands Group Plc (LSE: CHLL), the consumer packaged-goods distribution company, is pleased to announce that it has been appointed as the master distributor of ELF Nicotine Pouches for the UK market.

ELF Nicotine Pouches are an exciting entrant into the fast-growing nicotine pouch category. As the nicotine pouch category continues to develop, the Company's Chill Connect retail distribution division will support the brand's UK rollout with a nationwide programme of sample distribution, product launches, branded displays and other in-store activations to cement its leading position in this emerging space. ELF Nicotine Pouches are produced by Shenzhen iMiracle Technology ("SiMT"), a part of Heaven Gifts.

Chill Connect will also distribute SiMT's ELFBAR and Lost Mary vape products. Through this collaboration, the Company will be in a position to service its extensive convenience retail network with these category-defining brands, further enhancing its role as a key route-to-market provider for international FMCG companies. The appointment will commence in September and is expected to contribute to revenues in the coming 2026 financial year.

The UK nicotine pouch market is expanding at pace, with retail sales volumes up 82% in 2024 to reach approximately £131 million. Industry forecasts suggest the category will exceed £200 million in value during 2025, with some projections pointing to growth at a compound annual rate (CAGR) of nearly 40% through to 2030. This rapid expansion underscores the scale of the opportunity for ELF Nicotine Pouches and Chill Brands' management believes that by supporting leading brands the Company can play a significant role in shaping the future of this emerging category.

Commenting on the appointment, Callum Sommerton, Chief Executive Officer of Chill Brands, said:

"This master distribution agreement represents a significant step forward for Chill Brands and a major endorsement of our Chill Connect distribution platform.

ELF Nicotine Pouches are one of the most exciting new entrants to the reduced-risk category. Alongside this, the ELFBAR and Lost Mary vape ranges are already among the most sought-after products in the UK market. By leveraging our nationwide retail network and activation capabilities, we are ideally placed to maintain their growth and solidify their leadership position.

We are delighted to be partnering with these brands and look forward to working closely with them to achieve long-term success, particularly as the market for nicotine pouches matures."