MAIN Market-listed Hextar Industries Bhd through its subsidiary Global Aroma Sdn Bhd (GASB) has entered into a strategic partnership with Luckin Coffee Holding Singapore Pte Ltd to bring the much-anticipated Luckin Coffee brand to the Malaysian shores.
This collaboration grants GASB the exclusive rights to develop, open and operate coffee shops under the “Luckin Coffee” brand nationwide while introducing Malaysians to a modern coffee experience.
Founded in 2017, the Xiamen, China-headquartered Luckin Coffee operates 21,343 stores globally as of 1Q 2024.
The premium coffee chain currently operates with a robust workforce, having served over 300 million cumulative customers in China and Singapore.
Its average monthly transacting customers reached 79.8 million in 1Q 2024, representing a solid 36.5% year-on-year growth. In July 2024, Luckin Coffee celebrated a significant milestone with the grand opening of its 20,000th store in Beijing.
Hence, Hextar Industries’ partnership with Luckin Coffee marks a pivotal step for the group to capitalises on the rapid expansion of one of the world’s fastest-growing coffee brands.
It is also a major step forward for the diversified business group to leverage the potential of fast-growing F&B (food & beverage) market in opening up new revenue streams by offering consumers a fresh, tech-driven coffee experience.
“The partnership with Luckin Coffee unlocks new growth opportunities and marks a significant milestone for Hextar Industries whose expansion of the Luckin Coffee brand name into the Malaysian market is a strategic investment that will deliver excellent returns,” commented the group’s major shareholder Datuk Eddie Ong (main image, left).
“We have equally ambitious plans for Luckin Coffee in Malaysia, inspired by the brand’s tremendous growth. We aim to replicate this success by expanding aggressively across the country.”
Added Ong: “With Luckin Coffee’s value-driven pricing and technology-driven approach amid the rapidly growing coffee culture, we are confident that this move will drive significant growth for Hextar Industrie, hence positioning us for long-term success.”
As it is, GASB plans to launch several Luckin Coffee outlets across Malaysia by 1Q 2025. By leveraging Luckin Coffee’s data driven approach and proven business model, GASB aims to capture a substantial share of the local coffee market with the aim of enhancing customer experience with convenient, technology-enabled services.
At 4.24pm, Hextar Industries was up 1.5 sen or 3.13% to 49. 5 sen with 26.81 million shares traded, thus valuing the company at RM1.36 bil. – Nov 29, 2024
