--- title: "The big scoop: lemon tea chain to revamp Haagen-Dazs’ struggling China business" type: "News" locale: "en" url: "https://longbridge.com/en/news/288429924.md" description: "General Mills has signed a definitive agreement to sell its Haagen-Dazs ice cream stores in mainland China to an investor group led by Ningji Lemon Tea. This move aims to revitalize the struggling brand amid fierce competition from local rivals and shifting consumer preferences. While General Mills retains retail operations, Ningji will manage store licensing, leveraging its digital franchise system to streamline operations and improve profitability. The deal is expected to close by year-end." datetime: "2026-06-02T13:03:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288429924.md) - [en](https://longbridge.com/en/news/288429924.md) - [zh-HK](https://longbridge.com/zh-HK/news/288429924.md) --- # The big scoop: lemon tea chain to revamp Haagen-Dazs’ struggling China business General Mills is following in the footsteps of Starbucks and Burger King by offloading its mainland China Haagen-Dazs stores to an investor group led by local chain Ningji Lemon Tea, in a move analysts see as a proactive revamp of foreign business models amid China’s fast-evolving competitive landscape. The deal is expected to boost profitability. “Fuelled by the rise of home-grown brands, China’s consumer market features fiercer competition and faster industry shifts than the global average,” said Wang Shuo, analyst at Shanghai-based LeadLeo Research Institute. “Legacy multinational management structures can no longer keep pace with local market dynamics.” Minneapolis-based General Mills said on Monday that it had signed a definitive agreement with an investor consortium including Ningji, a start-up lemon tea chain in China with more than 3,000 signed stores nationwide. The buyer would receive an exclusive licence to use the Haagen-Dazs brand in ice cream stores and gifting lines, while General Mills would retain and operate the Haagen-Dazs retail and food service operations on the mainland, according to the statement. The deal was expected to close by year-end, subject to regulatory approvals and other customary conditions, with financial details undisclosed, the statement said. “Having long operated in China and harvested early market gains, Haagen-Dazs now struggles with its mid-quality, high-price formula amid weaker consumer confidence, spending power and appetite driven by macroeconomic uncertainties,” said Zhu Danpeng, an independent food and beverage analyst in Guangzhou, southern Guangdong province. Haagen-Dazs currently operated nearly 200 stores on the mainland, less than half its 2019 peak, according to domestic catering analytics firm Canyan Data. It ranked third among ice cream brands operating on the mainland by food service transaction value last year, trailing domestic brand Yeah Gelato and US brand Dairy Queen, according to Euromonitor International. Yeah Gelato, an emerging player selling Italian gelato priced at about US$4 per serving, offered innovative flavours like rice and pistachio and operated some 1,300 stores nationwide, Canyan Data said. “Haagen-Dazs’ asset-heavy, direct-operated store model leaves little margin for error amid rising mall rents and labour costs,” Wang said. “Its foot traffic has posted double-digit year-on-year declines for many quarters.” He added that Ningji’s digital franchise management system shortened major multinationals’ month-long decision cycles down to days. With its store roll-out efficiency and partner framework, Ningji was expected to help Haagen-Dazs streamline operations and reposition stores in high-traffic, young-focused social settings, Wang said. Haagen-Dazs opened its first mainland China store in Shanghai in 1996, positioning itself as a high-end ice cream brand. Most products are priced above 40 yuan (US$5.90), with some exceeding 100 yuan. General Mills said the deal aligned with its “accelerate strategy,” sharpening focus on brands and channels with the strongest profit potential. The company had significantly reshaped its portfolio for growth since fiscal 2018, turning over nearly one-third of its net sales base through acquisitions and divestitures, the statement said. Ningji did not immediately respond to a request for comment. The lemon tea chain opened its first shop in Changsha, Hunan province in 2021, expanding rapidly through franchising. In 2024, the company launched its globalisation strategy, shifting from regional coverage. “Driven by younger-generation demographic dividends, China’s ice cream market retains strong potential,” Zhu said. “While the domestic high-end ice cream market still exists, Haagen-Dazs has failed to keep pace with innovation. 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