The Minneapolis-based food giant General Mills has reached an agreement to transfer ownership of its Häagen-Dazs ice cream retail locations in mainland China to a group of investors that includes the Chinese tea company Ningji.
According to a company announcement released Monday evening, the transaction will grant the purchasing group exclusive rights to operate Häagen-Dazs branded ice cream shops and gift retail businesses throughout mainland China. General Mills will maintain its distribution agreements for Häagen-Dazs products with Chinese grocery stores and food service companies.
The companies did not reveal the purchase price for the transaction. Officials expect the sale to be finalized before the year ends.
When contacted Tuesday, General Mills did not provide immediate information about the total number of Häagen-Dazs locations it operates in China. The company’s most recent annual filing indicates it runs 332 ice cream shops globally.
Ningji currently manages approximately 3,000 tea retail locations throughout China. The company launched its store network in 2021 and has secured investment backing from ByteDance, the Beijing-based company behind TikTok, along with Shunwei Capital.
According to Yaling Jiang, an independent Chinese consumer analyst, Häagen-Dazs has been setting premium pricing in China “without delivering sufficient product value or cultural relevance.”
The brand’s offerings — conventional ice cream with elevated fat content — have “passed its peak” in China as consumers increasingly prefer low-fat, airy gelato alternatives, she noted.
International companies have increasingly been transferring ownership of their Chinese operations to local investors amid declining consumer confidence and slower economic expansion.
Starbucks announced in November its plans to establish a joint venture with Chinese private equity company Boyu Capital in an approximately $4 billion arrangement that gives Boyu up to 60% ownership of its Chinese operations.
In February, Toronto-headquartered Restaurant Brands International — which owns the U.S. fast food chain Burger King — announced the formation of a joint venture with Chinese investment company CPE to manage and grow the Burger King restaurant network in China.
Under that agreement, CPE contributed roughly $350 million to the joint venture and holds approximately 83% ownership of the operation.
