General Mills reportedly mulls selling Häagen-Dazs stores in China

General Mills is reportedly mulling selling its Häagen-Dazs ice-cream stores in China. According to Bloomberg, the Minnesota-based firm might launch a sale process for the assets in the coming months, with expectations of raising hundreds of millions.

According to the brand’s WeChat platform, there are over 250 Häagen-Dazs stores in China. However, the report said that discussions are still preliminary, and General Mills may ultimately opt against a sale. The company plans to continue distributing Häagen-Dazs products in Chinese supermarkets and convenience stores.

Another Chinese media 小食代 on WeChat reported that General Mills is conducting a comprehensive evaluation of its international business assets, including Haagen-Dazs stores in China. The move primarily aims to divest underperforming assets and mitigate geopolitical risks. General Mills told 小食代 that it has no comment to such speculations.

MARKETING-INTERACTIVE has reached out to General Mills for a statement.

The brand launched its first Chinese ice cream café in Shanghai in 1996. Five years later, after General Mills purchased Häagen-Dazs' parent company, it sold the US operations to Nestlé but retained control of international markets.

During its quarterly earnings call in March, General Mills CEO Jeff Harmening noted challenging conditions in China - the company's largest non-North American market - citing softer consumer demand and declining store traffic. He emphasised ongoing efforts to stabilise operations in the region.

According to the financial report, third-quarter net sales for the International segment were down 4% to US$651 million, including a 5-point headwind from unfavorable foreign currency exchange and a 4-point benefit from the Edgard & Cooper acquisition. Organic net sales were down 3%, driven primarily by declines in China and Brazil, partially offset by growth in distributor markets and Europe & Australia.

Another Reuters report also said that General Mills has faced slowing demand as persistent inflation has compelled budget-conscious consumers to prioritise value, even for essential items such as groceries.

"For us, China and the US are the two markets where consumers are under the most pressure," Harmening said. "Chinese consumers are currently facing pressure, and we've seen this in our Haagen-Dazs ice cream stores."

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