Stiff competition in mainland China has led to General Mills Inc selling its Haagen-Dazs ice cream chain to an investor group that includes Ningji, a fast-growing Chinese tea brand.
Under the terms of the new deal, the buyer will receive an exclusive license to operate Haagen-Dazs-branded ice cream shops and gifting businesses in mainland China.
General Mills however will retain ownership and operations of Haagen-Dazs retail and food service channels in China outside of the licensed outlets.
Haagen-Dazs relied on its premium positioning in China since opening its first store in Shanghai in 1996. However, the brand has faced steady contraction. As of May 2026, Haagen-Dazs operated 262 stores, down from more than 550 locations at its 2019 peak. However, the broader Chinese ice cream market continues to expand rapidly.
Zero Power Intelligence Group’s report highlighted that the ice cream market grew from Rmb 120 billion (US$17.7 billion) in 2020 to Rmb 200 billion (US$29.5 billion) in 2024. It is forecast to grow to Rmb 250 billion (US$36.9 billion) by 2030.
Despite strong market growth, Haagen-Dazs struggled to capture a strong share of the market due to stiff competition with local brands.
Euromonitor reported that the brand is still one of the top 3 players in China’s limited-service ice cream segment, ranking 3rd in food-service transaction value in 2025, behind domestic rivals Mr. Wildman and US-based Dairy Queen.
Ningji, one of the investors, saw its business primarily in the lemon-flavored handmade beverages, grew rapidly with its latest store count at 1,799. The acquisition is part of its plan to diversify its menu options to include more premium bakery and dessert products.
