Supreme (LSE:SUP): Can Its Value Vape Strategy Hold Up As The New Duty Regime Arrives?
Supreme PLC is ready for the new Vaping Products Duty, betting its value vape strategy and scale will hold up as prices rise.Summary
Supreme PLC used its annual general meeting to confirm that trading remains in line with market expectations and that it is prepared for the Vaping Products Duty taking effect in early October, which will apply a flat charge per millilitre across all vaping liquids. The company, a FTSE AIM 100 constituent, argues that its value positioning, manufacturing scale and compliance capability give it an edge as the market becomes more regulated. Its Drinks and Wellness division, boosted by SlimFast and Clearly Drinks, was a major growth driver, reducing reliance on vaping. While the new duty may push some consumers toward illicit products and add compliance costs, Supreme believes its value-focused brand can benefit from trading down and that its UK manufacturing and acquisition strategy support long-term growth, though regulatory risks around flavours, packaging and marketing remain.
(Source：Kalkine Media)
