VPZ unveils multi-million-pound investment plans

VPZ has announced a multi-million-pound investment programme aimed at expanding UK manufacturing, strengthening supply-chain controls and creating hundreds of jobs nationwide, as the specialist retailer steps up preparations for tighter regulation and the planned vape tax in 2026.

The programme includes installing a fifth production line at the company’s UK facility and opening 40 new stores during 2026, with new roles spanning frontline retail, store leadership, logistics, warehousing, marketing and administration. VPZ said the growth strategy is designed to align infrastructure expansion with an evolving regulatory landscape.

A central pillar of the investment is the launch of a bonded warehouse at VPZ’s headquarters in Edinburgh. Bonded warehousing places excisable goods under the control of HM Revenue & Customs, providing full audit trails and enhanced batch traceability. The retailer said the move will support enforcement efforts and help distinguish compliant operators from illegal sellers, amid rising concerns over the illicit vape market.

The announcement follows record seizures of illegal and non-compliant products reported by Trading Standards and HMRC, which authorities warn undermine public health protections, tax revenues and legitimate businesses. VPZ said the bonded facility will also play a key role in its preparations for the introduction of the vape tax in October 2026, helping to minimise disruption for retailers and adult consumers seeking legitimate products from specialist stores.

Jamie Strachan, operations director at VPZ, said the investment will add resilience and flexibility across the supply chain ahead of the new duty framework.

“Strengthening our infrastructure now allows us to easily manage duty requirements efficiently, maintain continuity of supply, and mitigate any disruption for our retail network and customers,” he said, adding that the 40-store rollout will create jobs across retail and operational roles while maintaining “transparent and regulated operations” for a consistent customer experience.

John McGuire, manufacturing and compliance director, said the new production line and bonded warehouse demonstrate the company’s commitment to responsible vaping and strict compliance.

“These initiatives ensure our products are fully traceable, safe, and meet the highest regulatory standards. We are proud to lead the way in maintaining confidence in the UK vape market while supporting public health,” he said.

VPZ added that vaping products are widely recognised for helping adult smokers quit, but stressed that continued confidence depends on robust safeguards to prevent underage access and unsafe products entering the market. The retailer, which operates more than 190 stores nationwide and employs teams trained by the National Centre for Smoking Cessation and Training, said further growth-focused measures will be announced in the coming months as part of its wider harm-reduction strategy.