SHANGHAI, June 2 (Reuters) – General Mills has agreed to sell its Haagen-Dazs ice cream stores in mainland China to a group led by fast-growing tea chain operator Ningji, the latest sale that underscores the decline of foreign brands in the world’s second-largest economy.
Chinese brands now develop products faster, charge more aggressive prices and have proven more skilled at adapting to social media trends than foreign competitors, gaining valuable market share.
General Mills, which said it is seeking to focus on brands and opportunities that generate more profitable growth, did not disclose financial terms.
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It will continue to sell Haagen-Dazs ice cream in China through third-party retailers such as convenience stores.
The sale comes after Starbucks — another brand that has been extremely popular in China in past decades — agreed in April to sell control of its China operations to Boyu Capital.
Ningji expanding rapidly
General Mills did not disclose the number of stores to be sold, but a source with direct knowledge of the sale said the Ningji-led group will buy about 170 stores from Haagen-Dazs.
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That compares to a peak of around 400 Haagen-Dazs stores in mainland China in the past, added the source who was not authorized to speak to the media and declined to be named.
Ningji Lemon Tea, a chain founded by Amanda Wang in 2020, has rapidly expanded across China and Southeast Asia, and now has more than 3,000 stores. It also began operating in the United States under the Bobobaba brand. Ningji did not respond to a request for comment on the deal.
