Last checked at 13 Sep 2023 08:31
13 September 2023
Supreme plc
("Supreme," the "Company" or the "Group")
Response to Speculation on Possible Ban of Disposable Vape Devices
The Board of Supreme (AIM: SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer products, notes the recent media speculation concerning the potential banning of disposable (or 'single use') vape devices in the UK aimed at mitigating underage vaping.
Supreme welcomes any government initiative that seeks to tackle underage vaping. Supreme's overarching strategy has always been to support a tobacco-free UK by offering both credible and safer alternatives for nicotine consumption and to-date, Supreme's own brand, 88Vape, with approximately 1.3 million regular users, has played a significant role in assisting people in quitting smoking.
The UK Government, in its April 2023 'Achieving Smoke-free 2030' initiative, confirmed its view that vaping remains "the most effective" tool to ease smokers away from cigarettes. Notwithstanding potential legislative restrictions on disposable vape devices, Supreme remains confident that vaping is and will continue to be the most credible and effective alternative to cigarettes; in addition to disposables, consumers have access to both 'open system' vaping and 'pod' vaping systems, both of which offer more environmentally friendly alternatives to disposables.
At this stage, it is important to clarify that no new legislation will be implemented before the formal government consultation takes place.
In the event of a ban on disposables, Supreme expects that most of its current consumers would shift to one of these alternative forms of vaping. A recent YouGov poll commissioned by the Company suggests that only 6% of former smokers who now vape would return to smoking if disposable vape devices were no longer available. Supreme has a range of fully compliant alternatives across its longstanding 88Vape 10mls ('open system vaping') and Liberty Flights dot pro 'pod' system, both of which continue to report year-on-year growth for Supreme.
In addition, Supreme intends to launch its own 88Vape pod system as another alternative to its current range of disposables. Pod-system vapes are rechargeable and therefore better for the environment.
Supreme remains on track to deliver Adjusted EBITDA(1) for the year ending 31 March 2024 in line with market expectations(2) and will undertake a comprehensive review to measure the impact of any proposed changes across the medium to long term once further clarity is provided.
1 Adjusted EBITDA means operating profit before depreciation, amortisation, share-based payments charge, fair value movements on non-hedge accounted derivatives and exceptional items.
2 Company compiled analyst consensus for the year ending 31 March 2024 prior to release of this announcement was Adjusted EBITDA of £25.6 million.
Enquiries:
Supreme plc Sandy Chadha, Chief Executive Officer Suzanne Smith, Chief Finance Officer
| via Vigo Consulting |
Grant Thornton UK LLP (Nominated Adviser) Samantha Harrison / Harrison Clarke / Samuel Littler
| +44 (0)20 7383 5100 |
Berenberg (Broker) Mark Whitmore / Marie Moy / Mara Grasso
| +44 (0)20 3207 7800 |
Vigo Consulting (Financial Public Relations) Jeremy Garcia / Kendall Hill supreme@vigoconsulting.com | +44 (0)20 7390 0230 |
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
About Supreme
Supreme supplies products across five key categories; batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods. The Company's capabilities span from product development and manufacturing through to its extensive retail distribution network and direct to consumer capabilities. This vertically integrated platform provides an excellent route to market for well-known brands and products.
The Group has over 3,300 active business accounts with retail customers who manage over 10,000 branded retail outlets. Customers include B&M, Home Bargains, Poundland, Tesco, Sainsburys, Morrisons, Amazon, The Range, Costcutter, Asda, Halfords, Iceland and HM Prison & Probation Service.
In addition to distributing globally-recognised brands such as Duracell, Energizer and Panasonic, and supplying lighting products exclusively under the Energizer, Eveready, Black & Decker and JCB licences across 45 countries, Supreme has also developed brands in-house, most notably 88Vape and has a growing footprint in Sports Nutrition and Wellness via its principal brands Sci-MX and Battle Bites.
investors.supreme.co.uk/