CHAGEE and Magma Group Forge Strategic JV for 300-Outlet Expansion

Landmark Partnership Marks Magma's Entry into Premium F&B Retail

Magma Group Berhad ("Magma"), a Malaysian conglomerate with roots in hospitality, is strategically diversifying into the high-growth lifestyle and consumer segment. Its wholly-owned subsidiary, Magma Chain Management Sdn Bhd, has entered into a joint venture and subscription agreement with the globally recognized premium tea brand, CHAGEE (M) Sdn Bhd ("CHAGEE (M)"). This collaboration creates the new joint venture company, Chagee Magma Sdn Bhd ("JVC"), marking Magma’s official entry into Malaysia’s rapidly expanding premium beverage market.

Ambitious Roadmap: Targeting 300 New Outlets in Three Years

The primary objective of the newly formed JVC is to rapidly scale CHAGEE’s retail presence nationwide. Through a phased retail rollout, the joint venture aims to open up to 300 directly managed CHAGEE outlets across Malaysia over the next three years. The partnership structure sees CHAGEE (M) holding a 60% stake in the JVC, with Magma Chain Management holding the remaining 40%. This aggressive expansion plan underscores the mutual confidence in capturing significant value within Malaysia's dynamic consumer landscape.

Synergistic Strengths: Global Brand Meets Local Expertise

Dato' Sri Thomas Liang Chee Fong, Group Managing Director cum Group CEO of Magma Group Berhad, highlighted the strategic fit, noting the partnership "leverages CHAGEE’s proven operational excellence and strong consumer appeal... alongside Magma’s deep expertise in local market development and execution." The collaboration effectively combines CHAGEE's established brand strength, global credibility (recently reinforced by its successful listing on Nasdaq), and premium product offerings with Magma’s local market insights and development proficiency, especially its background in hospitality and commercial presence.

CHAGEE: A Halal-Certified Market Leader

CHAGEE, which transformed from BaWangChaJi in 2021, has successfully positioned itself as a leading premium tea drinks brand, blending traditional tea culture with a modern, lifestyle-oriented experience. Malaysia is a critical market for the brand, currently serving as CHAGEE’s largest market outside of China. Furthermore, its Malaysian operations are Halal-certified by JAKIM, reinforcing the brand's commitment to quality and inclusivity while catering seamlessly to the local consumer base. This joint venture is set to accelerate the brand’s nationwide expansion, meeting the surging demand for premium, freshly made tea beverages.