CHILL Brands Group saw its stock prices jump as much as 25% after announcing the appointment of Michael Sandore as its new head of sales and marketing.
The CBD retailer, which has seen its share price drop by nearly 80% since January 2021, has brought in the former Anheuser-Busch InBev and Juul Labs senior sales manager as its new Chief Commercial Officer (CCO).
Mr Sandore will be tasked with boosting sales across the US, UK and Europe, after Chill reported revenues of $561,330 in the three months to September 30 2021, its most recently published financial figures.
While the company announced the launch of new product ranges last month, including CBD Gummies and flavoured tinctures to the UK and US, alongside a new marketing partnership with US Major Arena Soccer League (MASL), Mr Sandore still has a number of issues to contend with in the coming year.
Among these is the ongoing roll out of Chill’s CBD tobacco substitute to tens of thousands of retail stores across the US, as per a distribution deal signed with Asian America Trade Association (AATAC) in 2020, which Chill says has been ‘influenced’ by ongoing supply chain delays.
However, investors believe Mr Sandore is well placed to oversee this process, having spent more than three years as a sales director at US electronic cigarette giant Juul, where he handled the accounts for retail heavyweights 7-Eleven, Circle K and QuikTrip.
“Chill Brands is positioning itself as an early leader in two of the fastest growing consumer brand segments — CBD and tobacco alternative products,” Mr Sandore said.
“Today’s adult customer is looking for alternative products and the Chill brand is positioned to offer a variety of alternatives for any occasions those adult customers gravitate to. I want to personally thank Antonio Russo and Trevor Taylor for this incredible opportunity.”
His appointment has been generally well received by investors, many of whom have been critical of the brand’s lack of financial transparency and communication over the past year, in part leading to its poor stock performance.
One investor said the appointment showed that their ‘voices were heard’.
Since yesterday’s announcement, Chill’s stock has increased from around 16p to 18.5p, hitting highs of 20p in yesterday’s trading.
While the increase will be a welcome positive for investors, Chill’s stock is still less than a third of the 63p price it held in January 2021.