29 January 2024 , 12:43
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Shares in vaping companies took a hit on Monday as the UK prepares to ban disposable vapes.
Prime Minister Rishi Sunak is expected to announce the plan later today during a school visit, aiming to curb the rise in young people vaping and protect children's health. Chill Brands and Supreme saw their shares drop by 35% and 12% respectively in early trading. Chill's market value fell by over £3 million, while Supreme lost more than £10 million in valuation.
The move is part of the Government's response to its consultation on smoking and vaping launched last October. The ban is likely to be enforced at the end of 2024 or the start of 2025. Chill Brands, which also makes nicotine-free vapes and CBD products, said it is "committed to strict compliance with all relevant laws".
CEO Callum Sommerton stated that they will continue to sell their products across UK and US retailers but are ready to adapt to rule changes. He added: "The vaping landscape is constantly evolving, creating opportunities for businesses that are able to navigate the regulatory environment."
"The Chill brand has gained rapid traction with the support of major retailers, and I am confident that it will continue to do so as we move forward with our plans to launch reusable pod system vapes. Chill Brands Group is an agile company, and we are prepared to adjust to any legislation that may be enacted."
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Supreme, a rival company with brands like 88Vape, also saw its shares fall after the announcement. The company, which hasn't commented on the latest news yet, said in October that it was "fully supportive of any further legislation in the sector".
VPZ, a vaping retailer with over 160 stores across the UK, showed its support for the ban. VPZ director Doug Mutter stated: "For the past two years we have called on the UK Government to introduce licencing and controls for selling vaping products."
"We believe that this would provide a strong and robust solution to tackling access and the impact of disposables on youth uptake and the environment. From this perspective we welcome and fully support news that the UK Government plans to introduce a ban on disposable vaping products."
"However it's hugely important that it operates alongside a licencing scheme where there are proper punishments and policing in place to enforce the ban, tackle the existing black market and ensure that it doesn't continue to grow."
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