Top Takeaways:
- Manufacturing and retail growth: VPZ will add a fifth UK production line and open 40 new stores in 2026, creating hundreds of jobs.
- Compliance focus: Plans include a bonded warehouse in Edinburgh to strengthen traceability and supply-chain controls.
- Regulatory timing: The investment is positioned ahead of the UK’s planned vaping tax and amid record seizures of illicit products.
UK vape retailer VPZ said it has launched a multi-million-pound investment program to expand domestic manufacturing capacity, tighten supply chain controls, and support significant job creation across its UK operations.
Announced on Feb. 2, the program includes adding a fifth production line at VPZ’s UK manufacturing site and plans to open 40 new retail stores nationwide in 2026. The company said the expansion will create hundreds of new roles spanning frontline retail staff, store management, logistics and warehousing, as well as marketing and administrative functions.
As part of the investment, VPZ also plans to establish a bonded warehouse at its Edinburgh headquarters. Bonded warehousing systems, commonly used in duty-free and excise-controlled industries, allow goods to be stored under customs supervision, with duties and taxes deferred until products enter the domestic market. VPZ said the facility will strengthen traceability and compliance, particularly as enforcement agencies intensify scrutiny of the illicit vape market.
Jamie Strachan, VPZ’s operations director, said the investment aims to improve resilience and operational flexibility ahead of the UK’s planned introduction of a vaping tax in 2026.
“By strengthening our infrastructure now, we can manage future tax requirements more efficiently, maintain continuity of supply, and limit disruption for both our retail network and adult consumers,” Strachan said.
The announcement comes amid UK authorities’ reports of escalating enforcement against illegal and non-compliant vaping products. HM Revenue & Customs and Trading Standards have both reported record seizures of illicit vapes, warning that unregulated products undermine public health protections, distort competition, and erode tax revenues.
VPZ said its investment program is intended to reinforce its position as a compliant retailer operating within the UK’s tightening regulatory framework and to differentiate regulated supply chains from illegal operators as enforcement and tax controls continue to expand.
