In line with the strategy, Haypp Group are continuing to further enhance the distribution capabilities to improve on customer experience through shorter lead times and localized last mile solutions as well as to ensure capacity for future expected growth. As part of this work, Haypp Group has entered a long-term partnership with a third-party logistics provider concerning a new warehouse in Denver, Colorado. The new warehouse will serve the western US, significantly shortening delivery lead times and increasing capacity in the region.

This is part of an overall strategy where Haypp Group are launching a broader footprint of fulfillment centers across the US and Europe as demand for the nicotine pouch category continues to grow rapidly. The new third-party warehouse located in Denver, Colorado will enable 24 to 48 hour deliveries to customers in all of the key western states of the US and ensures substantial capacity for future growth. The chosen provider has a strong e-commerce offering focused on convenient deliveries and runs warehouse locations across the country.

The primary reason for launching this warehouse is to better serve the states where the demand for nicotine products is the largest, thereby supporting Haypp Group's expansion in the region. As Haypp Group is seeing a strong development of the nicotine pouch category, it has become necessary to further enhance the distribution network particularly within the Growth markets, not only to ensure capacity but also to further improve the customer buying experience. For this reason, Haypp Group is reviewing its present warehouse locations to ensure additionally improved distribution capabilities.