General Mills is selling its Häagen-Dazs shop operations in mainland China to a consortium that includes the QSR chain operator Ningji. This strategic move aligns with broader food and beverage industry trends aimed at refining business focus and enhancing profitability.
The US food giant announced that the buyer group will receive an exclusive license to operate Häagen-Dazs ice-cream shops and a gifting business within the market. General Mills stated the sale “elevates the company’s focus on its brands and channels that provide the strongest opportunities for profitable growth.”
Financial details of the transaction remain undisclosed. However, the deal is expected to conclude this year, pending regulatory approvals and customary conditions.
Ningji operates a network of over 3,000 quick-service retail tea shops in China, presenting a significant opportunity for the Häagen-Dazs brand in this rapidly evolving food and drink business landscape. Notably, General Mills will retain ownership and management of the Häagen-Dazs retail and foodservice operations in China, excluding the shop business being sold.
This transaction marks a key step in General Mills’ ongoing portfolio reshaping as it aims for areas with stronger returns. The company noted that nearly one-third of its net sales base has evolved through acquisitions and disposals since the 2018 fiscal year.
In related news, General Mills also agreed to sell its Brazil business, including brands like Yoki and Kitano, to Grupo 3corações earlier this year. Additionally, in January, the company offloaded its US tomato-products brand, Muir Glen, to Violet Foods. Furthermore, it plans to close three facilities in Missouri by the end of its 2029 fiscal year.
During the nine months ending February 22, General Mills reported a 7.4% decline in net sales, totaling $13.81 billion. In contrast, operating profit increased by 6.3% to $2.97 billion, aided by divestiture-related gains. However, net earnings attributable to General Mills decreased by 4% to $1.92 billion.
When presenting these figures in March, Chairman and CEO Jeff Harmening emphasized that the company is witnessing “clear signs of progress on key fundamentals including household penetration, baseline sales, distribution, and market share.” He expressed confidence, stating, “These are important metrics that give us confidence that better results are ahead for General Mills.”
This proactive approach aligns with evolving food and drink consumer trends, revealing a commitment to adapting in a dynamic market.
