General Mills sells Häagen-Dazs China shop operations to Ningji-led consortium
GIS•General Mills will sell its Häagen-Dazs shop operations in mainland China to a consortium including QSR operator Ningji, granting them an exclusive licence for ice-cream shops and gifting. This divestiture, part of a portfolio reshaping that has changed one-third of its net sales since FY2018, aims to boost profitable growth.
1. Sale of Häagen-Dazs China Shops
General Mills is divesting its Häagen-Dazs shop operations in mainland China to a consortium led by QSR chain operator Ningji. The buyer group receives an exclusive licence to use the Häagen-Dazs brand for ice-cream shops and a gifting business, while General Mills retains other retail and foodservice operations in China. Closing is expected this year, subject to regulatory and customary conditions.
2. Portfolio Reshaping Strategy
The disposal aligns with General Mills’ ongoing strategy to focus resources on brands and channels that deliver stronger returns. Since fiscal 2018, the company has reshaped nearly one-third of its net sales base through acquisitions and divestitures, including the recent sale of its Brazil business and the US Muir Glen tomato-products brand.
3. Financial Performance and Outlook
In the nine months to February 22, General Mills reported net sales down 7.4% to $13.81 billion, while operating profit rose 6.3% to $2.97 billion, driven partly by divestiture-related items. Net earnings slipped 4% to $1.92 billion, and management cited improved household penetration and baseline sales as indicators of stronger results ahead.
