Henry Saker-Clark,
PA Deputy Business Editor
Mon, 29 January 2024
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%.
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.
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.”
Mon, 29 January 2024
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%.
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.
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.”
More than £1 billion to be wiped from vaping industry after disposables ban
Simon Hunt
Mon, 29 January 2024
The consultation on single-use vapes is due to open next year (John Stilwell/PA) (PA Archive)
More than £1 billion is set to be wiped from the UK e-cigarette industry after the Prime Minister announced an outright ban on disposable vapes.
The ban, which is aimed at slashing the uptake of vaping among teenagers, is expected to be enacted later this year with retailers given a six-month implementation period.
The disposable vape category is worth as much as £1.2 billion in the UK annually, according to figures by ECigIntelligence, with disposables representing more than 4 in 5 vapes sold.
The ban poses a major threat to the UK’s vape retailers, which have occupied a growing share of the British high street. There are now more than 3,500 specialist vape shops in the UK, according to figures from the Local Data Company – which exclude other e-cigarette stockists such as supermarkets and newsagents.
The announcement came as a blow to vape supplier Chill Brands, with its shares tumbling as much as 40% after markets opened today as it vowed to “adjust” its operations to accommodate for the change.
Nearly 70% of parents, teachers, healthcare professionals and the general public are supportive of the measure, according to a government consultation, with studies suggesting as much as 9% of 11 to 15-year-olds are now using vapes and the proportion of 11 to 17-year-old vapers using disposables increasing almost ninefold in the last two years. A huge rise in the amount of e-wage resulting from vape disposal is also cited as a concern.
PM Rishi Sunak said: “As any parent or teacher knows, one of the most worrying trends at the moment is the rise in vaping among children, and so we must act before it becomes endemic.
“The long-term impacts of vaping are unknown and the nicotine within them can be highly addictive, so while vaping can be a useful tool to help smokers quit, marketing vapes to children is not acceptable.”
The move is the latest sign in a wider global crackdown on e-cigarettes, with China and several US states having banned the sale of flavoured vapes domestically – amid evidence fruit flavours are most popular with children and teenagers.
But some in the industry have warned of unintended consequences of a disposables ban.
Muntazir Dipoti, the National President of the Federation of the Independent Retailers, said: “While we agree that action is needed to prevent children and young people being attracted to vaping, we do not believe that banning disposable vapes is the way to go about it.
“An outright ban will simply send youngsters towards unorthodox and illicit sources where there is no compliance to tobacco and vaping laws, while the products they peddle are likely to contain dangerous and illegal levels of toxic chemicals.
“Disposable vapes are usually more affordable and, as such, are a bigger incentive for adult smokers to change to vapes.”
No comments:
Post a Comment