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Millions knocked off value of disposable vaping firms ahead of ban

Shares in vaping firms tumbled on Monday morning as disposable vapes are set to be banned in Britain.

Later on Monday, Prime Minister Rishi Sunak is set to announce the plan to implement the ban, which is aimed at tackling the rise in young people vaping and protecting children’s health, during a visit to a school.

Chill Brands saw shares slide by as much as 35% in early trading as a result, while rival business Supreme saw shares drop around 12%.

Ipsos UK poll
Prime Minister Rishi Sunak is set to announce the plan to implement the ban during a visit to a school later on Monday (Stefan Rousseau/PA)

Chill’s market value had fallen by over £3 million, with over £10 million knocked off Supreme’s valuation during the morning trading session.

The announcement forms part of the Government’s response to its consultation on smoking and vaping, which was launched in October last year.

The ban is expected to come into force at the end of 2024 or the start of 2025.

On Monday, Chill Brands, which makes nicotine-free vapes as well as CBD products, stressed that it is “committed to strict compliance with all relevant laws”.

Callum Sommerton, chief executive officer of Chill, said it will continue to sell its products across UK and US retailers but they are prepared to adjust to rule changes.

He said: “The vaping landscape is constantly evolving, creating opportunities for businesses that are able to navigate the regulatory environment.

Vaping
The announcement forms part of the Government’s response to its consultation on smoking and vaping (Nicholas Ansell/PA)

“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.”

Rival Supreme, which has brands including 88Vape, also saw its shares knocked by the announcement.

The company, which has yet to comment on the latest announcement, said in October that it was “fully supportive of any further legislation in the sector”.

Vaping retailer VPZ, which runs more than 160 stores across the UK, indicated it was supportive of the ban.

VPZ director Doug Mutter said: “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.”