Consumers are seen at a Haagen-Dazs store in Beijing on May 15. CHINA DAILY
General Mills Inc's recent decision to sell its Haagen-Dazs ice cream shops on the Chinese mainland to an investor group that includes Ningji, a fast-growing Chinese tea brand, signals intensifying competition in the country's ice cream market, amid consumer desire for constant relevance and innovation.
Under the terms of the deal, the buyer will receive an exclusive license to operate Haagen-Dazs-branded ice cream shops and gifting businesses on the mainland. General Mills will retain ownership and operations of Haagen-Dazs retail and food service channels in China outside of the licensed outlets. Financial terms were not disclosed. The transaction is expected to close in 2026, pending regulatory approvals and customary closing conditions.
The move aligns with General Mills' "accelerate strategy", which focuses on prioritizing brands and channels with the highest potential for profitable growth, said the company. Since 2018, the company has reshaped its portfolio, divesting nearly a third of its net sales base through acquisitions and divestitures.
Haagen-Dazs has relied on its premium positioning in China since opening its first store in Shanghai in 1996. However, the brand has faced steady contraction: according to industry tracker canyandata.com, Haagen-Dazs operated 262 stores in May 2026, down from more than 550 locations at its 2019 peak. However, the broader Chinese ice cream market continues to expand rapidly.
