UK Vaping Brand Supreme Proposes ‘Downgrade’ Initiative, Possibly Due to Stock Market Pressure

[Two Supreme Originals] According to British media reports, UK manufacturer and wholesaler Supreme has announced a series of measures, including discontinuing bright packaging and simplifying flavor names, to reduce the use of its own brand e-cigarette products by minors and to lessen the environmental impact of disposable e-cigarettes (see details). These initiatives will be launched in the coming months, and Supreme is also calling for the entire UK e-cigarette market to follow suit. Why has Supreme made such a decision?  

Two Supreme has learned that Supreme primarily produces e-liquids, with its brand 88Vape holding a 30% share of the UK e-liquid market, where the average profit margin for e-liquids can reach 45%. Last year, Supreme announced the acquisition of e-cigarette manufacturer Cuts Ice and e-liquid business Flavour Core, with the acquisition price not disclosed. The company claims that its e-liquids offer great value, with a £1 per bottle e-liquid of comparable quality to those sold at £4 per bottle in the market. The company offers e-liquids in 8 strengths and over 50 flavors.  

As an e-cigarette manufacturer, Supreme has disposable e-cigarettes Liberty Flights and Zillion, with Zillion being a flavored nicotine-free e-cigarette.  

Two Supreme has learned that last year, Supreme's e-cigarette division's revenue doubled to £76 million. Last month, the company also won a contract to become the general distributor for the best-selling e-cigarette brands ElfBar and Lost Mary at Tesco, Morrisons, One Stop, and WHSmith.  

According to foreign media reports, the stock price of Supreme PLC (AIM:SUP), a major distributor of disposable e-cigarettes, fell by 11% to 113 pence per share in early September. The reason for this decline is related to the waste and environmental pollution associated with disposable e-cigarette kits and the growing calls for bans. This initiative by Supreme may be influenced by the stock market.