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(Sharecast News) - Fast-moving consumer packaged goods company Chill Brands said on Monday that it has transitioned into a diversified distribution and services group, moving away from its previous own-brand model to focus on broader partnerships across the consumer goods sector.
Chill Brands said the strategic shift will allow it to work with a wider portfolio of global and emerging brands, particularly in the fast-growing nicotine alternatives market. It added that the new model offered multiple revenue streams through consulting, distribution and hybrid arrangements, reducing concentration risk and enhancing scalability.
As part of the restructure, Chill closed non-performing US divisions, cutting more than $650,000 in annual costs, with the firm now focused on UK and European markets, where it secured distribution agreements with RELX and partnered with SYP Global to develop new nicotine delivery technologies.
The AIM-listed firm also announced plans to launch Chill Connect, an online wholesale platform aimed at independent retailers, with the platform expected to simplify ordering, improve stock rotation and expand retail relationships, while providing real-time data on consumer demand.
Chill Brands said it was developing a trade compliance division to support retail execution for partner brands, including monitoring in-store merchandising and promotional compliance, adding that the division was expected to generate actionable retail data to guide future marketing and sales strategies.
As of 0820 BST, Chill Brands shares were down 1.0% at 1.48p.
Reporting by Iain Gilbert at Sharecast.com
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