Shares in the U.K. vaping company Supreme rose 5 percent after the company announced it is now the “master distributor” for two leading U.K. vaping brands—Elf Bar and Lost Mary, reports City AM.
The London-listed company expects the partnership to generate revenues of £25 million ($36.06 million) to £30 million over the next fiscal year ending March 2024.
The news comes amid a political crackdown on vape products—especially for those underage.
Sandy Chadha, CEO of Supreme, said the agreement 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 U.K.,” Chadha added.
Supreme says its strong market presence, distribution network and compliance capabilities provide Elf Bar and Lost Mary with a “ready-made blueprint” distribution strategy.
The company will report sales of the newly added brands separately from its existing vaping category, which includes Supreme’s proprietary 88Vape brand.
Supreme nearly doubled revenues to £76.1 million this year, while posting an £8.6 million increase in gross profit.