UK vaping giant Supreme saw its shares rise shares five percent yesterday after the company announced it is now the “master distributor” for UK e-cigarette brands, although the company has reported weak annual profits.
The firm has been chosen as the master distributor for two leading UK vaping brands, ElfBar and Lost Mary, which it will supply to major UK retailers such as Tesco, Morrisons and WHSmith Travel.
The London-listed company expects the partnership to generate revenues of £25m to £30m ($38 million) over the next fiscal year ending March 2024, according to media reports.
This comes amid a political crackdown on vape products – especially for those under-age.
Sandy Chadha, CEO of Supreme, said the “sizeable” appointment will allow the group to “fully leverage its unique technical, regulatory, compliance and quality assurance capabilities within the vaping sector.”
“We have seen a hugely positive response from both established and new retailers who view Supreme as an ideal partner to supply these products across the UK,” Chadha added.
Supreme says their strong market presence, distribution network, and compliance capabilities provide ElfBar and Lost Mary with a “readymade blueprint” distribution strategy.
The company will report its sales performance separately from the existing vaping category, which includes their own 88Vape brand.
It comes as Supreme posted a record performance in their vaping division this morning, with nearly doubled revenues up to £76.1m from £43.6m last year, and an £8.6m increase in gross profit.
£76.1 million (FY22: £43.6 million) and increasing gross profit to £28.1 million (FY22: £19.5 million)
In 2023 they ramped up investment in M&A and capital expenditures by £7.5m to “support future growth”.
“As we look to the future, we remain committed to expanding our product set, both organically and via acquisition,” Chadha commented: