Another 300 Chagee outlets in three years as Magma looks to grow tea business
KUALA LUMPUR: Hospitality-based Magma Group Bhd has formed a joint venture with Chagee (M) Sdn Bhd to launch 300 Chagee tea outlets in Malaysia over the next three years.
Chagee entered the Malaysian market in 2019 under the name BaWangChaJi, before unifying its global branding under the Chagee name in September 2021.
Today, Malaysia reportedly is Chagee's largest market outside China.
Chagee Malaysia will hold a 60 per cent stake, while Magma's subsidiary Magma Chain Management Sdn Bhd will hold the remaining 40 per cent in the joint venture company, Chagee Magma Sdn Bhd.
Magma said the joint venture represents an important step in its efforts to diversify into the premium food and beverage retail sector.
The rollout will occur in phases, depending on market conditions, it added.
"Detailed announcements regarding specific store launches will be provided in due course," the company said.
Magma said the partnership strategically merges Chagee's strong brand reputation, international recognition and premium products with Magma's local market knowledge and development capabilities to support the rollout of new outlets.
By leveraging Magma's experience in hospitality and established commercial presence in Malaysia, the collaboration is well-equipped to speed up Chagee's nationwide growth and meet the increasing demand for lifestyle-focused beverage options, it added.
Magma group managing director cum group chief executive officer Datuk Seri Thomas Liang Chee Fong said the joint venture reflects its strategic vision to diversify into high-growth lifestyle and consumer segments.
"The partnership leverages Chagee's proven operational excellence and strong consumer appeal, recently reinforced by its successful listing on Nasdaq, alongside Magma's deep expertise in local market development and execution.
"Together, we see substantial opportunities to capture significant value within Malaysia's expanding premium tea market," he said.
Magma's shares were traded 1.25 per cent or half a sen higher to 40.5 sen at midday, with a volume of 14.89 million shares changing hands.
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