Tea Chain Chagee Is Sticking to High Prices Despite Sales Plunge

Tea maker Chagee Holdings Inc. is holding firm to a strategy of premium products at high prices, despite a plunge in sales and profit from consumers flocking to other chains offering beverages for a third the price.

The Shanghai-based freshly-brewed tea chain has largely remained on the sidelines as domestic peers such as coffee chain Luckin Coffee Inc. and bubble tea peddler Mixue Group partnered with China’s tech giants doling out billions of dollars in subsidies to provide ultracheap drinks through online orders this year.