VB Distribution has opened a new warehouse and trade counter complex in Lancashire, adding 100,000 sq ft of HMRC-approved bonded warehousing to its UK network as the vaping industry prepares for the introduction of the Vaping Products Duty in October.
The new business park increases the company's national depot footprint to 500,000 sq ft and forms part of its long-term expansion strategy. The distributor said the investment strengthens its customs bonded warehouse operation, enabling duty-suspended storage and helping customers manage the financial impact of the new tax regime.
The Vaping Products Duty comes into force on 1 October 2026, requiring businesses to pay duty on vaping products. VB Distribution said expanded bonded warehouse capacity would allow retailers and wholesalers to hold stock without immediately incurring duty costs, helping to manage cash flow and reduce the risk of sudden price increases.
Natalia Gosciniak, chief executive of VB Distribution, said the investment positions the company to support customers through one of the biggest regulatory changes facing the sector in recent years.
"Most of the market is still working out how to survive October. We've built for it," she said.
"This site means retailers who move their supply to us get continuity, compliant stock, and credit terms, while distributors without bonded infrastructure are forced to pass duty costs straight through. We expect a significant share of the market to consolidate around the businesses that prepared, and we intend to lead it."
VB Distribution supplies products to more than 50,000 retail shelf placements across the UK, spanning supermarkets, wholesalers, convenience stores, forecourts, travel retail and independent retailers. The company said it has an annual group turnover of £500 million.
The Lancashire site is now fully operational and is expected to create up to 1,000 jobs. The company described it as the first of several planned investments as it continues to expand its distribution infrastructure and support customers ahead of the implementation of the new vaping duty.