Supreme, which owns vaping brands KiK and 88vape, has announced the acquisition of Liberty Flights, a leading UK vaping manufacturer best known for their Liberty Flights vaping brand and Dot Pro device for a total consideration of up to £14.75 million.
The transaction involves an initial consideration of £7.75 million plus deferred consideration of £2 million which is payable in 12 months, in addition to a performance related earn-out of up to £5 million. Under current performance expectations, this will be approximately £2 million, Supreme said in a regulatory filing.
Founded in 2010, Liberty Flights specialises in premium e-liquid and high-quality vaping devices, alongside distributing a large catalogue of global third-party e-liquid brands. The brand is sold largely through convenience retailers, either directly or via wholesalers, as well as through an expanding direct to consumer online footprint.
For the year ended 31 January 2021, Liberty Flights generated revenues of approximately £9 million and EBITDA of £1.5 million.
Supreme said the acquisition is firmly in line with its strategy to support a tobacco free UK by offering both credible and safer alternatives for nicotine consumption.
“We are delighted to be acquiring Liberty Flights, a business I have personally known since its inception and a brand I have long admired. The combination of Liberty Flights and Supreme's existing vape offerings couldn't be more aligned and is highly complementary across our respective manufacturing, product, and customer profiles,” Sandy Chadha, chief executive of Supreme, commented.
“In addition, the acquisition further builds on our significant market reach in the UK, accelerating our product presence in the fast-growing pod system market, a sizeable growth opportunity for Supreme. We look forward to welcoming Liberty Flights into the Supreme group and updating shareholders on our progress over the course of the current financial year."
Liberty Flights will operate as a standalone entity for an initial 12-month period before being fully integrated into Supreme.
Supreme supplies products across five key categories - batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods – to over 10,000 retail outlets.
The Competition and Markets Authority (CMA) has approved Arla Foods Ingredients’ acquisition of Volac’s Whey Nutrition business.
The regulator’s go-ahead follows an evaluation that took place after an acquisition agreement was signed in April.
Both businesses manufacture and supply whey protein concentrate used for sports nutrition and food applications. The CMA has found that the merger does not give rise to “a realistic prospect of a substantial lessening of competition” within the whey protein market.
Commenting on the announcement, Luis Cubel, group vice president and managing director of Arla Foods Ingredients, said: “This is a very welcome decision at a time when demand for high-quality whey ingredients is growing. It means we’re a step closer to a significant acquisition that would consolidate our position as a leader in the whey nutrition space.
“We will now move forward with the formal process necessary to make Volac’s Whey Nutrition business part of Arla Foods Ingredients. Once that is complete, we will be able to comment further on the many advantages of bringing together these two major manufacturers of whey ingredients – not just for both companies, but also for our customers and the industry as a whole.”
Commenting on behalf of the Neville family, James Neville, joint owner of Volac, said: “We were always confident that Arla Foods Ingredients had the necessary expertise and values to take our Whey Nutrition business to the next level, and we are delighted to have reached this important step in the acquisition process. It’s great news for Volac Whey Nutrition, and for the whey ingredients sector, that these two innovative companies have been allowed to join forces.”
Tankerford Ltd has unveiled its first Refuel Market branded store at Ardleigh South Service Station, near Colchester in Essex, following the successful launch of a Nisa Local store at Ardleigh Village Service Station.
Tankerford said this development of a former Spar store represents a significant step in its strategy to innovate and diversify its retail offerings, particularly within the fresh and premium convenience sectors.
The Refuel Market brand, created by Tankerford as a sub-brand, offers a new concept for convenience retail that incorporates a fresh, elevated shopping experience for both commuters and local customers.
The store features a robust selection of freshly prepared food items, an expanded range of snacks, and meal deals tailored to the preferences of on-the-go consumers, with exclusive Co-op own brand products through a supply deal with Nisa.
Explaining the rationale behind the introduction of the Refuel Market sub-brand and the collaboration with Nisa, Jamie Wheeler, retail sales director at Tankerford Ltd, said: “When I joined Tankerford, we saw an opportunity to offer something different within the service station market.
“We wanted to create an inviting, modern space that would encourage people who might have driven past to stop in and see what we have to offer.
“Nisa’s support, especially with Co-op products, was invaluable in shaping Refuel Market, allowing us to cater to a wide range of customer preferences and make fresh, high-quality items more accessible.”
To elevate the experience further, Refuel Market’s premium meal deal includes unique products from new suppliers such as Simply Lunch which has allowed them to offer customers sushi and other high end speciality lunchtime options, as well as locally sourced baguettes and rolls.
The ‘Flavours of the World’ section introduces international snacks and beverages from regions like Europe, the US, and Japan, providing unique options that distinguish Refuel Market from traditional convenience stores.
The store’s focus on premium convenience, paired with an accessible price point, has been well received by early customers. “We’re seeing strong initial interest and positive feedback,” said Wheeler.
“Our customers are largely commuters and truckers, and our aim is to make it easy for them to find quality, fresh products quickly. The response has already exceeded our expectations, with our new offers and refreshed branding enhancing the shopping experience.”
Nisa’s head of retail, Taranjit Singh Dhillon, expressed enthusiasm for the partnership and Tankerford’s innovative approach. “Tankerford’s vision with Refuel Market aligns perfectly with our goal of delivering fresh, convenient options to communities across the UK. We’re proud to be a part of this journey and support the Refuel Market’s growth with our Co-op product range and dedicated service. We look forward to seeing the Refuel Market brand expand and resonate with even more customers.”
Tankerford said it plans to assess the potential for future Refuel Market locations based on site suitability and customer demand.
“This is a trial, but we’re very optimistic,” added Wheeler. “If Refuel Market continues to perform well, we’ll look into bringing this unique shopping experience to other locations that align with the brand’s appeal and values.”
Irish food giant Kerry Group has on Tuesday said it has entered into an agreement to sell Kerry Dairy Holdings (Ireland) Limited to Kerry Co-Operative Creameries Limited for €500 million (£416m).
Kerry Co-Op is the largest shareholder in Kerry Group.
Kerry Dairy Ireland consists of dairy consumer products, with its leading range of brands across cheese, cheese snacks, dairy snacks and dairy spreads which can be found in chilled cabinets across retailers in the UK and Ireland.
It also comprises the dairy ingredients business, which is a leading provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
As per the deal, Kerry Co-Op members will become direct owners of Kerry shares equivalent to 85 per cent of the Kerry Co-Op's current shareholding. The remaining 15 per cent of the Kerry Co-Op's shareholding in Kerry will be redeemed as part of the consideration for the disposal, following which the Kerry Co-Op will cease to be a shareholder in Kerry and Kerry’s issued share capital will reduce by approximately 2.9 million shares. The transaction will involve no public placement of Kerry Group plc shares.
Under the proposed transaction, the Kerry Co-Op will initially acquire a 70 per cent interest in Kerry Dairy Ireland, while Kerry will retain a 30 per cent interest. The companies have further agreed to certain call-put option arrangements which will transfer the remaining 30 per cent in Kerry Dairy Ireland to the Kerry Co-Op in the forthcoming years.
Kerry said the disposal represents an important step in its evolution to becoming a fully dedicated global taste and nutrition solutions company.
This follows the significant portfolio development over recent years including the build out of its proactive health, food protection and preservation, and enzymes platforms, while also divesting of the Consumer Foods Meats & Meals business and the Sweet Ingredients portfolio.
“Our strategy of continuous business development and portfolio evolution aligned to our customers has been a key underpin of Kerry’s success over the years. The proposed transaction will result in a global leader in taste & nutrition solutions and an end-to-end industry leader in dairy,” Edmond Scanlon, chief executive of Kerry Group, commented.
“Both businesses are perfectly positioned for success, thanks to the dedication and extraordinary contribution of our people over the years. On completion, Kerry will become a pure play global business to business taste & nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression, and delivering greater returns for our shareholders.”
James Tangney, chairman of Kerry Co-Op commented: "We are very pleased to have reached an agreement that will ultimately deliver full ownership of one of the leading dairy businesses in the country, while also, in effect, releasing circa 85 per cent of Kerry Co-Op’s Kerry Group shares into the hands of our members to be retained or sold by each of them at a time of their choosing.
“Kerry Co-Op and Kerry Group have a shared heritage that has helped create value, pioneer change and shape the dairy industry. As direct shareholders in the plc, members will continue to gain from the Group’s progress and, in tandem, the Co-Op will focus on ensuring Kerry Dairy Ireland becomes a platform for future growth”.
Kerry said the proposed transaction will have a positive impact on its overall financial metrics, with an enhanced revenue volume growth profile, combined with a step change in Kerry’s EBITDA margin profile and an improved overall sustainability profile.
Top Swiss chocolatier Lindt & Sprungli is disputing claims brought by US consumers in a class action lawsuit concerning the levels of heavy metals found in its chocolate bars.
Lindt has unsuccessfully attempted to end a class action lawsuit in the US, launched in February 2023, following an article by a US consumer association questioning the presence of heavy metals in dark chocolate bars from several manufacturers, including two bars produced by Lindt.
"Lindt & Sprungli disagrees with all the allegations made in the US lawsuit," the firm told AFP in a statement late on Monday night.
"Our Lindt & Sprungli quality and safety procedures ensure that all products comply with all applicable safety standards and declaration requirements and are safe to consume," it added.
Consumers in the US states of Alabama, California, Florida, Illinois, Nevada and New York had taken legal action on the back of a 2022 article by the US consumer organisation Consumer Reports, concerning the levels of lead and cadmium in dark chocolate bars.
The organisation tested 28 bars sold in the US. One of the Lindt bars was among eight found to have a high level of cadmium, while another was among 10 with a high level of lead, though neither had the highest levels.
Two of its bars, marketed under the US brand Ghirardelli, were among the five classified as "safer choices".
While bars from other manufacturers had higher concentrations of heavy metals - including organic brands - consumers insisted in the class action lawsuit that they had paid premium prices for Lindt because they believed they were "purchasing quality and safe dark chocolate".
They accused Lindt of having violated the labelling rules in force in their states.
The Eastern District of New York district court denied Lindt's motion to have the lawsuit dismissed.
'Puffery' argument
The chocolatier's lawyers maintained that the words printed on its packaging - "excellence" and "expertly crafted with the finest ingredients" - were unactionable "puffery".
The court decision outlined product puffery as "exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely".
The line of defence startled some newspapers in a country highly attached to the prestige image of its goods, with Switzerland's NZZ am Sonntag weekly saying Lindt's strategy had "dismantled its own promises of quality".
Lindt, however, stressed that the use of a "puffery argument" was a "technical" legal response before a US court and not an admission of inferior quality products.
That argument, Lindt told AFP in a statement, was merely "used to clarify that an advertising challenged by plaintiffs is not sufficiently objective to support the specific false advertising claim being made".
But nonetheless, it insisted that it stood by its claims of "excellence" and products "expertly crafted with the finest ingredients".
"Our consumers can have full confidence in that," said Lindt.
An undercover operation conducted by Japan Tobacco International (JTI) in Leeds has revealed the abundant presence of illicit tobacco and vapes in the region, with 43 illegal products found across 18 stores.
The exercise, which involved operatives making multiple test purchases across the city, has highlighted how rife illicit tobacco and vape products are in the area. Of the 18 stores visited, all had illicit tobacco or vapes available, with 12 of these stores located in the Labour Chancellor’s constituency of Leeds West and Pudsey.
Operatives on the ground had no difficulties purchasing contraband vapes, with eight products obtained, including one vape boasting a puff count of 15,000 – 25 times over the legal limit.
Nine of the 18 stores visited are known to be repeat offenders, having sold illegal tobacco to operatives during previous operations last year. Since the start of 2022, JTI has identified 59 retailers selling illegal tobacco or vapes in Leeds.
All evidence and information gathered has been made available to Trading Standards in the anticipation that it will support their efforts to enforce and prosecute anyone found to be selling illegal products.
“Once more, our undercover operations have exposed the stark reality of the illicit tobacco and vape trade in the UK," said Ian Howell, Public Affairs Manager at JTI UK,. "The vast availability of illicit products is a crisis on our streets and is increasingly happening in the open.
“The fact that you can easily walk into a store and purchase a vape with a puff count 25 times the legal limit is outrageous and needs to be taken more seriously by the Government. With data showing that Illicit tobacco spending in the UK is now twice as large as spending on illegal narcotics1, action must be taken from the top down to stamp out this worrying trend, which is impacting the sales of legitimate retailers and opening the door for criminal activity in our communities.
“Instead of implementing the impractical generational smoking ban, which will only play straight into the hands of criminals and exacerbate illicit trade, the Government should focus on removing illicit products from our streets and supporting honest retailers to tackle this growing issue.”
The operation also bought 12 packs of illicit Ready-Made-Cigarettes (RMC) and 23 packs of 50g illicit Roll-Your-Own (RYO). The typical price for illicit RMC on the day was £5, with the operatives’ most expensive purchase being £7. For comparison, the recommended retail price of JTI’s lowest price RMC product is £12.75.