Chagee Denies Hiring Starbucks Executive Amid US IPO Plans
Chinese bubble tea chain Chagee has reportedly denied claims that it hired Li Tao, the vice president of Starbucks China, despite earlier reports from local media outlet 36Kr suggesting the move would support its expansion strategy. The controversy arises as Chagee considers a initial public offering in the United States to broaden its financing access. Founded in 2017, Chagee has achieved significant growth in China's competitive beverage market by focusing on fresh milk and raw-leaf tea products. The company aims to surpass Starbucks China in sales volume by 2024, having already recorded a gross merchandise value of over RMB 5.8 billion in the first quarter of this year. This figure exceeds half of its total 2023 sales and contrasts with Starbucks' recent revenue decline in the region. Chagee experienced rapid expansion in 2023, opening more than 3,500 new stores to reach a total of over 4,500 locations. While profit figures remain unofficial, reports indicate a substantial net profit in 2023, marking a turnaround from previous losses. The brand continues to leverage unique cultural branding and aggressive store openings to solidify its position as the fourth-largest to-go beverage chain in China.
Wire timeline
Chagee Denies Hiring Starbucks Executive Amid US IPO Plans
Chinese bubble tea chain Chagee has reportedly denied claims that it hired Li Tao, the vice president of Starbucks China, despite earlier reports from local media outlet 36Kr suggesting the move would support its expansion strategy. The controversy arises as Chagee considers a initial public offering in the United States to broaden its financing access. Founded in 2017, Chagee has achieved significant growth in China's competitive beverage market by focusing on fresh milk and raw-leaf tea products. The company aims to surpass Starbucks China in sales volume by 2024, having already recorded a gross merchandise value of over RMB 5.8 billion in the first quarter of this year. This figure exceeds half of its total 2023 sales and contrasts with Starbucks' recent revenue decline in the region. Chagee experienced rapid expansion in 2023, opening more than 3,500 new stores to reach a total of over 4,500 locations. While profit figures remain unofficial, reports indicate a substantial net profit in 2023, marking a turnaround from previous losses. The brand continues to leverage unique cultural branding and aggressive store openings to solidify its position as the fourth-largest to-go beverage chain in China.
TechNode