General Mills Sells China Häagen-Dazs Shops

General Mills has agreed to sell its Häagen-Dazs shop operations in mainland China to a buyer group that includes Ningji, a prominent quick-service chain operator. This transaction grants the consortium an exclusive license for Häagen-Dazs ice-cream shops and a gifting business within China.

The divestiture aligns with General Mills' strategy to enhance its focus on brands and channels that exhibit the greatest potential for profitable expansion. Financial terms for the sale, which is anticipated to conclude this year pending regulatory approvals, have not been disclosed.

This move is the latest in a series of portfolio adjustments by General Mills, aimed at concentrating on areas yielding stronger returns. Since fiscal year 2018, nearly a third of its net sales base has been altered through acquisitions and disposals.

In recent months, General Mills also agreed to sell its Brazil business and offloaded the US tomato-products brand Muir Glen. The company also plans facility closures in Missouri by the end of its 2029 fiscal year.

For the nine months leading up to February 22, General Mills reported a 7.4% decrease in net sales, reaching $13.81 billion. Operating profit saw a 6.3% increase to $2.97 billion, partly due to divestiture-related items, while net earnings attributable to General Mills decreased by 4% to $1.92 billion.

Chairman and CEO Jeff Harmening indicated progress in key fundamentals such as household penetration and market share, expressing confidence in future results.