Supreme has shrugged off the impact of last year’s disposable vaping ban and said it was “well prepared” for further upcoming changes that will see the UK’s first vaping duty. The group, which also owns consumer brands such as SlimFast and Typhoo Tea, reported record revenues for the year to March 31, rising 17% to £270.2 million.
Vaping revenue growth despite ban
Vaping revenues grew 15% to £148.1 million in the year to March 31, despite the ban on disposable vapes coming into effect on June 1, 2025. Disposable vapes made up £54.1 million of revenues for the group in the UK the year before the ban was introduced. The vaping sales jump helped the wider firm report record revenues for the year.
Underlying earnings remained flat at £40.6 million, but pre-tax profits fell 14% to £26.7 million as its bottom line was impacted by costs of investment in factories and its acquisitions of Typhoo and SlimFast.
CEO comments on regulatory changes
Sandy Chadha, chief executive of Supreme, said: “The UK ban on disposable vapes, which took effect on June 1 2025, represented the most significant regulatory event in our industry’s recent history. Nevertheless, our vaping category outperformed expectations, with revenues for the period growing by almost £20 million. Our ability to retain every major retail customer and guide them through the transition from disposable vapes to pod systems… highlights our position as a leader in the UK vaping market.”
The group said the introduction of the vaping products duty (VPD) in October will be the “next major industry milestone”. Mr Chadha insisted the group was “well-resourced and well-prepared” for the changes, which also includes requirements for duty stamps to be added to the retail packaging of all individual vaping products produced in or imported into the UK.
Preparation for VPD
He said: “We have spent a significant portion of the second half of 2025-26 preparing for its introduction – adapting our manufacturing processes to accommodate digitised tax stamps, reviewing packaging requirements, applying for duty suspension arrangements and reconfiguring certain warehousing operations.” Mr Chadha added: “Supreme is confident that the forthcoming VPD regime represents an opportunity for the group: smaller competitors without Supreme’s financial strength and operational depth will find the compliance burden considerable. Supreme, however, expects to navigate the change effectively and opportunistically, as it begins to take a larger market share.”
“Whilst the VPD may lower sales volumes, we are optimistic that it will reduce illicit trade in favour of established, trusted distributors,” he said.
Market reaction and diversification
Shares in Supreme fell 5% after the results. Supreme has shifted away from disposable vapes in recent years to grow its food, drink and nutrition divisions through a series of acquisitions, including deals to buy tea brand Typhoo, soft drinks firm Clearly Drinks and sports nutrition supplier FoodIQ. Last October, it bought SlimFast’s UK and European business from Glanbia in a £20.1 million deal.
Supreme said its drinks and wellness portfolio grew by 60% to £69.3 million of revenue in the year to September, with SlimFast making a “strong contribution after only five months as part of the group”. On the year ahead, Supreme said it had a “positive start” to 2026-27.
