General Mills said on Monday it will sell its Haagen-Dazs ice-cream shops in mainland China to an investor group that includes local tea chain operator Ningji, as part of a strategy to focus on businesses with stronger profit growth.
Foreign consumer brands face a more challenging operating environment in China as domestic rivals have expanded rapidly and consumers have grown more price-conscious, prompting some multinationals to lean more on local partners to run retail operations.
General Mills said the buyer will receive an exclusive licence to use the Haagen-Dazs brand for ice-cream shops and gifting businesses in mainland China. The U.S. food company did not disclose the financial terms of the deal.
The Minneapolis-based Cheerios maker will continue to own and operate Haagen-Dazs retail and foodservice businesses in China outside the mainland.
The sale comes at a time when inflationary pressures and added uncertainty from the Iran war have weighed on consumer spending, dragging on sales at packaged food makers.
The sector is also grappling with changing dietary preferences toward healthier foods, a trend accelerated by the rapid uptake of weight-loss drugs.
The divestment, which is expected to close in calendar year 2026, subject to regulatory approvals and customary closing conditions, aligns with General Mills' strategy of focusing on brands and channels that offer stronger profit growth, the Pillsbury maker said.
General Mills reaffirmed its annual sales and profit forecasts in March after downgrading them in February. - Reuters
