Commercial Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

23 April 2026

Chill Brands Group plc

("Chill Brands" or the "Company")

Commercial Update

Chill Brands Group Plc (LSE: CHLL), the consumer packaged-goods distribution company, is pleased to provide the following update on its principal business activities during Q2 of its FY 2026.

Distribution Operations - Chill Connect

Chill Connect, the Company's direct-to-convenience retail distribution business, continues to develop its commercial operations across the UK convenience retail market. The business operates a national field sales force supplying convenience retailers across the UK with a range of fast-moving consumer goods, including vaping products and products from related categories.

The Company is pleased to report on a number of recent operational developments within Chill Connect, including:

a) Product range expansion. The Company has expanded the range of products distributed through the Chill Connect network to include beverages, confectionery, batteries and other adjacent categories. The Board regards further range expansion as a priority area of focus and the business is currently engaged in a number of active conversations with a number of consumer staple brands seeking activation, promotion and distribution capability with a particular emphasis on the independent convenience channel.

b) Wholesale ordering platform. The Company has completed development of a wholesale ordering platform for its retail partners, providing a dedicated digital ordering channel available to the Company's network of convenience retail customers. The platform is pending final sign-off on payment processing integration and is expected to go live in the near term. The Board anticipates that, once operational, this will deliver improvements across a number of areas including streamlining the ordering experience for retail partners; reducing the business's dependence on physical cash handling; and materially extending the Company's commercial reach, as a live digital platform enables orders to be placed at any time without the need for direct input from a field representative - an important capability given the scale of the independent convenience network the business serves.

The Board continues to keep the optimal structure for each of the Group's business activities under active review to ensure they are positioned to fulfil their respective potential.

Digital Platform - chill.com

The chill.com domain represents one of the Group's most strategically significant assets. The domain has been independently appraised at a material value and the Board maintains the view that it has considerable potential as the anchor of a broader, audience-driven digital platform portfolio.

The Board believes that audience-first digital platforms, when properly developed, can generate revenue across multiple channels simultaneously and that the value of such platforms compounds as audience scale increases. It is the Board's ambition to build chill.com into a centrepiece of this kind of portfolio when sufficient resources are available to it.

The Board acknowledges that, given the constrained financial resources available to the Company, it has not been possible to develop chill.com with the extensive marketing investment that many competitors in the digital platform space rely upon. As part of a strategic review of its digital platform, the Company, alongside considering routes to monetise the value of its domain name, has been actively exploring partnership models that have the potential to bring operational resource and development expertise alongside chill.com's established domain authority and audience potential.

The Company has been approached by a group of digital platform operators with expertise in originating, developing and scaling online platforms, to explore the possibility of building out a digital platform portfolio alongside chill.com. The proposal, which is at an early stage, involves the licensing of a portfolio of complementary digital assets into the Company, with a particular focus on marketplace, social and democratised financing platforms. It is intended that these would be developed as a suite of platforms under the operational stewardship of the platform operators, bringing dedicated resource, domain expertise and development capability to this part of the business.

Discussions are at an early stage and no binding arrangements have been entered into. There is no certainty that any transaction will be completed or that terms will be agreed. Shareholders should not place undue reliance on this announcement in respect of the digital platform strategy. Further announcements will be made as discussions develop and if any binding arrangements are entered into.

Callum Sommerton, Chief Executive Officer of Chill Brands Group, said: "The Board is encouraged by the operational momentum in Chill Connect and by the strategic progress being made towards the development of a broader digital platform business. The Company's focus is on building durable, independently viable activities that are structured and resourced appropriately for their independent needs. Further updates will be provided as material developments occur."

-ENDS-

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About Chill Brands Group

Chill Brands Group plc (LSE: CHLL) is a distribution-led consumer packaged goods company serving the UK convenience retail sector. Through its Chill Connect platform, the Company operates a national field sales team providing direct-to-store distribution and advisory services to brands seeking to expand their distribution into the independent convenience channel. The Company's product range spans vaping and nicotine alternatives, with active expansion into sundries, beverages, confectionery, and other fast-moving consumer goods. Chill Brands partners with established FMCG businesses and emerging brands to provide comprehensive route-to-market solutions. The Company also owns the premium chill.com domain name.

Publication on website

A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com