General Mills(US:GIS) Xin Lang Zheng Quan·2025-06-19 05:55Core Viewpoint - General Mills is considering selling its Haagen-Dazs store business in China, with potential transaction value reaching hundreds of millions of dollars, driven by declining store traffic and a significant reduction in the number of stores over the past four years [1][2]. Group 1: Business Restructuring - General Mills has engaged consultants to evaluate the sale of its Haagen-Dazs stores in China, with formal sale processes expected to start in 2025 [2]. - The company has been undergoing a restructuring process, incurring approximately $70 million in restructuring costs for the current quarter, with total restructuring expenses projected at $130 million by the end of fiscal year 2028 [2]. - Haagen-Dazs has faced criticism for declining store traffic in China for three consecutive quarters, with CEO Jeff Harmening acknowledging the challenges in the Chinese market [2][3]. Group 2: Market Performance - In the second quarter of fiscal year 2025, General Mills' international organic net sales decreased by 3%, primarily due to declines in the Chinese and Brazilian markets [3]. - The ice cream market in China is contracting, with major players like Yili and Mengniu reporting significant revenue declines of 18.4% and 14.1%, respectively, in 2024 [3]. - Haagen-Dazs has seen a rapid reduction in its store network, with only 263 stores remaining in China as of June 12, 2025, down from over 400 in September 2021, marking a nearly 20% decrease [3]. Group 3: Channel Transformation - Haagen-Dazs is shifting its business model to focus on retail channels, with plans to enhance penetration and improve product display in convenience stores and supermarkets [4]. - The brand is also expanding its presence in e-commerce, moving towards interest-based platforms like Douyin and Xiaohongshu [4]. - The B2B segment of Haagen-Dazs is growing rapidly, encompassing high-end dining services and partnerships with premium hotels and restaurants [5]. Group 4: Potential for Revitalization - The potential sale of the store business could provide an opportunity for Haagen-Dazs to rejuvenate its operations in China, similar to the successful localization seen with McDonald's China [6]. - The ice cream market is shifting towards a "quality-price ratio" era, with more affordable products gaining traction, which may pressure traditional high-end store formats [6]. - Despite challenges, Haagen-Dazs maintains a strong brand presence, holding over 15% market share in the Chinese ice cream chain sector as of 2023, ranking second only to DQ [6].