Key Points
- Supreme continues to expect FY27 trading to be in line with market expectations; analyst consensus immediately before its latest update stood at £302.1 million of revenue and £39.6 million of adjusted EBITDA.
- The UK's Vaping Products Duty starts October 1 at a flat £2.20 per 10ml of vaping liquid.
- Supreme has publicly supported a more regulated and compliant vaping market and says the new regime could contribute to market consolidation.
- Supreme's Vaping revenue increased 15% to £148.1 million in FY26, while its Manchester facility produces around 70 million 10ml e-liquid bottles annually.
2Firsts
September 18, 2026
UK-listed consumer goods group Supreme plc said in a September 17 trading update that it continues to expect results for the year ending March 31, 2027, to meet market expectations, less than two weeks before the UK's Vaping Products Duty takes effect.
Supreme also maintained a comparatively positive stance toward the new tax and compliance framework, saying it supports the government's objective of creating a more regulated and compliant vaping market.
In its FY26 results, the company went further, saying it expected market consolidation following the introduction of the duty and that smaller competitors with less financial and operational capacity could face a significant compliance burden.
Analyst consensus immediately before the latest announcement stood at £302.1 million of FY27 revenue and £39.6 million of adjusted EBITDA. Supreme said trading had started the financial year in line with expectations after investing almost £5 million in its brands so far this year.
Supreme Sees Scope for Market Consolidation
The UK's Vaping Products Duty takes effect on October 1, 2026.
Under HM Revenue & Customs rules, vaping liquid within the scope of the duty will be taxed at a flat rate of £2.20 per 10ml, or £0.22 per millilitre, regardless of whether it contains nicotine.
At that rate, a 10ml bottle carries £2.20 in duty and a 2ml pod carries £0.44. Supreme noted that a two-pack of 2ml pods would therefore attract £0.88 in duty, before VAT.
Rather than focusing solely on the additional cost, Supreme has described the regime as a potential business opportunity.
The company said its contract-manufacturing activity in the 10ml e-liquid segment has been growing and expects that trend could accelerate as smaller manufacturers face greater operational complexity under VPD.
Supreme has said its financial resources, manufacturing platform and compliance capabilities could allow it to gain market share as the sector consolidates.
Those are management expectations. VPD has yet to take effect, and its eventual impact on company exits, market shares and consumer demand has not yet been established by post-implementation market data.
Vaping Revenue Rose 15% in FY26
Vaping remains Supreme's largest operating division.
For the year ended March 31, 2026, Vaping revenue increased by £19.1 million, or 15%, to £148.1 million from £129.0 million a year earlier. Supreme said the growth was entirely organic, supported by expanded distribution of third-party brands including Hayati and IVG, entry into Spain and the rollout of pod devices following the UK's disposable vape ban.
The UK ban on the sale and supply of disposable vapes took effect on June 1, 2025. Supreme said its core 10ml e-liquid operation continued to see steady demand during FY26.
Its Manchester manufacturing facility produces approximately 70 million 10ml e-liquid bottles annually.
At group level, FY26 revenue rose 17% to £270.2 million. Adjusted EBITDA was broadly flat at £40.6 million, compared with £40.5 million a year earlier, while adjusted net cash increased to £7.5 million from £1.2 million.
88Vape Retains Value Positioning
Chief Executive Sandy Chadha said Supreme expects its 88Vape brand, which has long been positioned around value, to continue appealing to existing and new consumers as the new pricing regime takes effect.
Supreme did not disclose post-VPD retail pricing for 88Vape in its latest trading update.
Because the duty is levied at the same absolute rate per millilitre across products, vaping liquids of the same volume carry the same VPD liability regardless of their retail price. Supreme views 88Vape's value positioning as one element of its response to the new pricing environment, although any shift by consumers toward lower-priced products remains a company expectation rather than an observed post-tax market outcome.
Supreme operates across three divisions: Vaping, Drinks & Wellness, and Electricals & Household. The company says it has more than 3,000 active business accounts serving around 55,000 retail outlets.
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