Shares Plunge, Topic Surges on Trending Lists—Some Say “I Couldn’t Sleep All Night”: CHAGEE Issues a Detailed Statement Addressing the “Caffeine” Controversy

Chagee has once again found itself at the center of a public debate over caffeine content, with the issue climbing to the top of social media trending lists.

In recent days, an online blogger posted that high-caffeine beverages commonly used by office workers—naming brands such as Chagee—are “skirting the line” by marketing stimulant-heavy drinks. The post quickly fueled discussion. Some consumers said they were unable to sleep after drinking the beverages, while others claimed they experienced heart palpitations.

In response, Chagee stated that it is dealing with what it described as malicious fabrications that harm the company’s reputation. The brand said its legal team has fully intervened and has initiated legal proceedings, emphasizing it will defend its rights in accordance with the law.

However, the statement did not fully calm the controversy. On December 26, Chagee’s U.S.-listed shares fell more than 15% at one point, hitting their lowest level since listing. By the close, the decline narrowed to 2.54%, ending at USD 11.9 per share, with a market capitalization of approximately USD 2.21 billion. That same day, “Chagee Caffeine” trended on Weibo, and on the morning of December 27, “Chagee Plunges” rose to the No. 1 trending topic.

On the evening of December 26, Chagee posted another response on its official Weibo account, offering additional context around caffeine levels. The brand said that based on publicly available data and testing results, a freshly brewed tea drink made from whole tea leaves contains—when calculated per 100 ml—roughly the same caffeine as a latte, and significantly less than an Americano.

Chagee also stressed that tea is more than caffeine. It highlighted compounds such as tea polyphenols and amino acids, along with minerals including potassium, manganese, magnesium, and zinc, describing them as part of the tea’s flavor profile and perceived health value. The company said these components work together with caffeine, creating what it characterized as a gentler, more complex balance.

The brand added that it insists on using whole-leaf tea brewed fresh, rather than tea dust, tea powder, or industrial flavoring agents. It acknowledged that this approach can produce a richer tea taste and may also mean naturally occurring caffeine is more present—something it framed as a result of respecting ingredient authenticity and maintaining its signature flavor base.

At the same time, Chagee said it recognizes that consumers have different needs and physical responses. It noted that it continues to explore improvements through ongoing exchange and co-creation with academic and industry experts, aiming to deepen its understanding of tea processing techniques and cultural knowledge.

According to the company, this research led to the launch of a “Light Caffeine · Boya Juexian” product in March. Chagee said it reduced caffeine content by about 50% while preserving the core tea flavor, and also incorporated natural herbal elements such as sour jujube seed and agarwood leaf, drawing on traditional practices to deliver a milder experience and taste.

Media reports noted that this is not the first time Chagee has faced scrutiny related to caffeine. In May of last year, some consumers posted online that they felt discomfort—such as anxiety-like symptoms and palpitations—after drinking the brand’s “Wanli Mulan” milk tea, with some claiming the reaction was severe.

Chagee reportedly told reporters on December 27 that its mini-program homepage includes a publicly available ingredient list, and that caffeine content is also indicated on drink cups.

Based on information released by the brand, a large 580 ml cup of “Boya Juexian” contains 117.2 mg of caffeine, while a large “Light Caffeine · Boya Juexian” contains 55.4 mg. The previously criticized “Wanli Mulan” is listed at 184.4 mg of caffeine for a large size, and another drink, “Yiqi Hongchen,” is listed at 175.8 mg.

On Chagee’s mini-program ordering page, the brand includes a reminder stating that whole-leaf tea naturally contains caffeine and encourages customers to choose an appropriate drinking time based on individual conditions. Several beverages—including “Baiwu Hongchen,” “Light Caffeine · Boya Juexian,” “Light Caffeine · Boya Xianqi,” and “Hupo Guang”—are also marked as “light caffeine.”

On the business side, Chagee’s third-quarter 2025 earnings report (released on November 28) showed that the brand’s global store count reached 7,338 locations. Total GMV in the quarter was RMB 7.93 billion, net revenue was RMB 3.208 billion, and adjusted net profit was RMB 503 million. Overseas operations continued to expand, with overseas GMV exceeding RMB 300 million—up 75.3% year over year and 27.7% quarter over quarter—marking two consecutive quarters of overseas GMV growth above 75% year over year. The company said it has remained profitable for 11 consecutive quarters, although net profit attributable to shareholders declined year over year for two straight quarters.

On the earnings call, CFO Huang Hongfei said that while store expansion continues, the company has recognized pressure on GMV at existing locations. Same-store sales declined 27.9% domestically and 23.4% overseas, which he attributed mainly to a high base in the prior-year period and intensifying competition. He added that franchise fundamentals remain stable, store closure rates remain low, and same-store GMV growth may continue to face pressure in the short term.

Looking ahead, Huang said the company’s strategic priorities will focus on long-term sustainable value creation for shareholders, continuing product innovation and strategic brand investment to increase market share, while improving operational efficiency to optimize resource allocation and strengthen performance—supporting flexible, sustainable growth.

Also during the call, founder, chairman, and global CEO Zhang Junjie said the brand will advance the rollout of its “4.0 menu,” and introduce new categories such as specialty pure tea to broaden the product lineup. The company also plans to expand into new consumption occasions—such as breakfast and evening time slots—to improve store utilization across different dayparts. In addition, it aims to enhance the customer experience by refining how products are presented during preparation.

Separately, it was noted that on December 15, founder Zhang Junjie held a wedding ceremony with Gao Haichun, co-chair of Trina Solar. Photos and videos circulating from the event showed that guests were served large quantities of Chagee milk tea.