Chill Brands Group to End Development of Nicotine Products
Chill Brands Group PLC announced on Wednesday that it will cease future development and sales of its non-tobacco nicotine products in the United States in response to increased regulatory restrictions on synthetic nicotine products.
According to a report from Market Watch, this London-listed cannabidiol product company stated that additional product restrictions will result in significant costs for manufacturers and retailers. As a result, they have decided to exit the US market and sell off their remaining synthetic nicotine inventory.
Chill has announced that its "smokeless nicotine" chewing bag product will no longer be released for sale in the US due to new federal regulations on tobacco products. The company says that all of its other products will not be affected. In March, Congress granted the FDA power to regulate synthetic nicotine which included Chill's product. As a result, the company was required to submit a pre-market tobacco product application to legally sell its product, which added a full cost of $400,000 to each flavor variation. After evaluating this requirement, the company determined it was not commercially viable.
Chief Executive Officer, Kaleb Somerton, stated, "This is certainly disappointing, however, this decision will at least prevent us from investing further capital in the project. These resources can now be better allocated towards developing other products and potential revenue streams.
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