General Mills has agreed to sell its Häagen-Dazs ice-cream shops in mainland China to an investor group that includes Ningji, a Chinese tea brand with approximately 3,000 retail outlets in China. The deal grants the buyers exclusive rights to sell the Häagen-Dazs brand in ice cream shops and gifting businesses across mainland China, while General Mills will continue to supply Häagen-Dazs ice cream to Chinese retail and food service operations [1]. Financial terms of the transaction were not disclosed, but the deal is expected to close by the end of this year [1].
General Mills did not specify how many Häagen-Dazs stores it operates in China, but its latest annual report states it has 332 ice cream parlors worldwide [1]. Ningji, which began its chain in 2021, has received funding from ByteDance and Shunwei Capital [1].
Yaling Jiang, an independent Chinese consumer analyst, commented that Häagen-Dazs has been charging premium prices in China without delivering sufficient product value or cultural relevance. She noted that the brand's traditional high-fat ice cream has "passed its peak" in China, as consumer preferences shift toward low-fat, airy gelato options [1].
The article also highlights a broader trend of foreign businesses transferring ownership of their Chinese operations to local investors amid stagnating consumer confidence and slowing economic growth in China. Recent examples include Starbucks forming a joint venture with Boyu Capital, allowing the latter up to a 60% stake in its China operations in a deal worth about $4 billion, and Restaurant Brands International partnering with CPE, which invested about $350 million for an 83% stake in Burger King's China business [1].
CONCLUSION
General Mills' sale of its Häagen-Dazs shops in China to a local investor group reflects shifting consumer preferences and a broader trend of foreign companies ceding greater control to Chinese partners. The deal is expected to close by year-end, with General Mills maintaining its retail and food service presence in the country.