Latest interview: Chill Brands CEO Callum Sommerton discusses strategic growth and 2024

Thomas Warner spoke with Chill Brands Group CEO Callum Sommerton about the company's agreement with one of the UK's top five supermarkets to sell its nicotine-free vaping products.

This agreement marks a significant expansion for Chill Brands, increasing its points of sale in the UK to over 2,100 stores and laying the groundwork for a revenue surge.

Sommerton delved into Chill Brands' transformative journey in 2023, emphasizing the strategic shift from traditional CBD products to nicotine-free offerings, as well as the launch of its online marketplace, Chill.com.

Thomas Warner (TW): Callum, can you discuss the impact of the agreement with one of the UK's top five supermarkets on your distribution and revenue?

Callum Sommerton (CS): Certainly, Thomas. This agreement is a significant step forward for us, bringing our Chill ZERO nicotine-free vaping products into 1,500 stores of this supermarket. While I can't specify which supermarket at this stage, this expansion increases our points of sale in the UK to over 2,100. We are confident this will significantly boost our revenue, soon surpassing £2 million. This demonstrates our growing influence in the market and the appeal of our products.

TW: 2023 has been transformative for Chill Brands. Can you talk about the shift in your product focus and overall strategy?

CS: Indeed, 2023 has been a year of transformation. We have shifted our focus from traditional CBD products to nicotine-free products like Chill ZERO, both in the US and UK markets. This strategic shift is crucial for our growth. Additionally, we launched Chill.com, an online marketplace that hosts over 40 brands. Our partnership with Smoker Friendly in the US has also been key in introducing Chill ZERO across various states. We are laying a solid foundation for financial growth and diversification.

TW: Given your stock price growth, what do you attribute this positive market response to?

CS: I believe our ongoing efforts and strategic shifts have played a key role. We have a clear vision for our direction and have delivered on our commitments. While there is no magic formula, our transformation story and pivot have shown the market hope and clear growth opportunities. Our stock price reflects this optimism and the potential for further value creation.

TW: Looking ahead, what are Chill Brands' main focuses and strategies for 2024?

CS: Our focus for 2024 is to continue expanding and developing products. We will drive sales of brands on Chill.com and introduce new brands. The growth of our Chill ZERO range in the US and UK will continue to be a priority. We will also focus on marketing efforts and responsible product development in line with regulatory changes. Additionally, we plan to expand into other European markets, leveraging our omnichannel approach, including retail, online, and Amazon.co.uk.

TW: Considering the evolving market for nicotine-free products, how confident are you in the future demand for such products?

CS: We are very confident in the demand for nicotine-free products. Industry leaders like Smoker Friendly in the US and major supermarkets in the UK are supporting this category, indicating that it is not just a trend. We believe that through continuous innovation and responsiveness to market demands, we can effectively capitalize on this growth area.