Fast-rising Phoenix 2 Retail eyes European markets
FEATURE
Expanding – the futuristic Phoenix 2 Retail stand built for the World Vape Show in June .
TAKING
FLIGHT
Fast-rising Phoenix 2 Retail eyes European markets
WORDS : GRAEME ANDERSON
One of the country ’ s fastestgrowing companies aims to double its £ 200m turnover by extending a successful UK operation into Europe .
Vape supplier Phoenix 2 Retail only launched in a single office in Hartlepool in 2020 but has seen turnover soar from £ 5m in year one to £ 90m , then £ 160m , and now , more than £ 200m in 2024 .
But despite that astonishing growth rate , the company has no intention of resting on its laurels and is expanding into Ireland , Belgium , Spain and Germany , giving it a truly international reach and the prospect of doubling its turnover again in the near future .
Phoenix 2 Retail currently operates the UK ’ s biggest smoking alternative products distribution network , helping the country ’ s 6.5m smokers transition away from tobacco and towards a healthier future . It employs 60 people in Hartlepool , Peterlee and a new base in Manchester , while 40 new jobs are in the pipeline . Those extra workers will ensure the growth of an innovative company specialising in total category solutions and which , last year alone , supplied around 50m vapes to the market and worked with the biggest names in retail , including Tesco , Morrisons and WHSmith .
It ’ s a remarkable North-East success story carried out at breakneck pace , but founder , 37-year-old Hartlepudlian Chris Kelly , says his focus is so much on maintaining the company ’ s day-to-day growth that he rarely thinks about the bottom line .
“ Every day has its challenges and opportunities , so I don ’ t get too carried away by turnover ,” he told Tees Business . “ It ’ s all about making sure things flow as they should .
“ We ’ ve continually been playing catch-up because we ’ ve grown so fast , but we ’ ve got some great managers in and we ’ re building expertise all the time , developing that operational infrastructure behind the scenes .
“ The exciting part now is making it a nice easy machine to run , which then allows us to think , well , how do we get it to £ 400m or £ 500m ?”
Phoenix 2 Retail was launched after Chris spotted a gap in the market for a one-stop-shop giving retailers access to new vape products from Asia and overseas to the UK .
The concept has proven to be an extraordinary success and the sky really is the limit if the model can be rolled out abroad .
Chris revealed : “ We currently have 15 per cent of the UK market , a sector worth £ 4bn , and our target now is to take five per cent of the European market .”
The key partner helping Phoenix to accomplish its overseas goals in the short term is WHSmith .
“ We ’ ve agreed a deal with them to supply vapes in their outlets at airports and train stations in Ireland , Spain , Belgium and Germany to start with ,” said Chris .
“ After that , we ’ ll look to expand further and over the next 12 months we ’ ll start
114 | Tees Business