General Mills has agreed to sell its Häagen-Dazs ice-cream shops in mainland China to an investor group that includes Chinese tea brand Ningji. The deal, announced late Monday, will allow the buyers to exclusively sell the Häagen-Dazs brand in ice cream shops and gifting businesses across mainland China. General Mills will continue to sell Häagen-Dazs ice cream to Chinese retail and food service operations.
Financial terms of the deal were not disclosed. The transaction is expected to close by the end of this year. General Mills did not immediately respond to a request for the number of Häagen-Dazs stores it operates in China. In its latest annual report, the company said it operated 332 ice cream parlors worldwide.
Ningji, which operates around 3,000 retail tea outlets in China, opened its chain of stores in 2021. It has received funding from ByteDance, the Beijing-headquartered creator of TikTok, and Shunwei Capital.
Yaling Jiang, an independent Chinese consumer analyst, said Häagen-Dazs has been charging premium prices in China “without delivering sufficient product value or cultural relevance.” She noted that its traditional ice cream with higher fat content has “passed its peak” in China as low-fat, airy gelato options become more common.
The sale reflects a broader trend of foreign businesses shifting ownership to Chinese investors amid stagnating consumer confidence and slowing economic growth. In November, Starbucks formed a joint venture with Chinese private equity firm Boyu Capital, allowing Boyu to hold up to a 60% stake in its China operations. In February, Restaurant Brands International, parent of Burger King, formed a joint venture with Chinese investment firm CPE, which invested about $350 million for an approximately 83% stake.
