General Mills to sell mainland China Haagen-Dazs ice-cream shops to local tea brand Ningji

[HONG KONG] General Mills has agreed to sell its Haagen-Dazs shops in mainland China to a group including local tea brand Ningji.

The buyers will be exclusively licensed to use the Haagen-Dazs brand in ice-cream shops and gifting businesses in mainland China, while General Mills will continue to own and operate Haagen-Dazs retail and foodservice operations, the US company said in a statement.

The transaction is expected to close this year, subject to regulatory approvals and other closing conditions, General Mills said, adding that the sale aligns with its strategy to focus on brands and channels that provide the best opportunity for profitable growth. Financial terms were not disclosed.

Ningji has more than 3,000 premium tea shops in China, according to the statement.

Bloomberg News reported a year ago that General Mills was considering selling the China stores and seeking several hundred million US dollars for the assets.

Western brands have been reassessing their approach to the world’s second-biggest economy, including selling assets or forming joint ventures with local partners. In April, Starbucks sold a majority stake in its China business to private equity firm Boyu Capital in a US$4 billion deal in a bid to improve the coffee chain’s flagging fortunes in the country.

SEE ALSO

Haagen-Dazs maker prices debt for 4.4 billion euros payout to owners

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Citigroup acted as exclusive financial adviser to General Mills, while Herbert Smith Freehills Kramer Global was the legal adviser. BLOOMBERG