General Mills announced on Monday it has signed a definitive agreement to sell Haagen-Dazs ice cream shops in mainland China to an investor consortium including Ningji, a local lemon tea chain with more than 3,000 stores nationwide [1, 2].
Under the deal, expected to close by the end of 2026 pending regulatory approvals and other customary conditions, General Mills will retain ownership of Haagen-Dazs retail and foodservice operations in China, while the new owners gain an exclusive license for Haagen-Dazs ice cream shops and gifting business in mainland China [1, 2]. Financial terms of the transaction were not disclosed [1, 2].
Haagen-Dazs has faced difficulties in the Chinese market, where its mid-quality, high-price positioning has struggled amid weaker consumer confidence and volatile macroeconomic conditions. Independent analyst Zhu Danpeng said, "Having long operated in China and harvested early market gains, Haagen-Dazs now struggles with its mid-quality, high-price formula amid weaker consumer confidence, spending power and appetite driven by macroeconomic uncertainties" [1].
Western brands are reevaluating their China strategies amid such challenges. For example, Starbucks sold a majority stake in its China business to Boyu Capital for US$4 billion in April 2026 [2].
Citigroup advised General Mills as exclusive financial adviser for the transaction, with Herbert Smith Freehills Kramer Global serving as legal advisers [2].
The sale positions Ningji, a fast-growing start-up lemon tea chain, to expand its footprint through the Haagen-Dazs ice cream shops across China, leveraging its 3,000+ signed stores [1, 2]. The closing of the deal by the end of 2026 will mark a significant shift in Haagen-Dazs' retail presence in mainland China.
