General Mills is selling its China Häagen-Dazs stores to Ningji Lemon Tea, aiming to adapt to the competitive market and enhance profitability, with the deal expected by year-end.
General Mills Sells Häagen-Dazs in China
General Mills is divesting its Häagen-Dazs stores in mainland China to an investor group led by Ningji Lemon Tea. This strategic move is aimed at adapting to the rapidly changing competitive landscape in China. Analysts suggest that transitioning ownership is essential for improving profitability as local brands continue to rise.
Ningji Lemon Tea Takes Over
Ningji Lemon Tea, a thriving chain with over 3,000 outlets nationwide, will acquire exclusive rights to operate Häagen-Dazs ice cream stores and gifting lines. Meanwhile, General Mills will retain managerial control over retail and food service operations. This deal, which is expected to close by year-end subject to regulatory approval, reflects a broader trend among multinational companies reevaluating their positions in China’s evolving market.
Häagen-Dazs in a Competitive Market
Despite ranking third among ice cream brands in China, Häagen-Dazs faces challenges from a declining consumer confidence and spending power. Analysts state that the brand’s mid-quality, high-price strategy is becoming less viable. This agreement not only seeks to enhance operational efficiency but also aims to align the brand with the shifting dynamics of the marketplace.
Source : Lemon Tea Chain to Revamp Haagen-Dazs in China – Thailand China Business News