Core Viewpoint - Haagen-Dazs is facing significant challenges in the Chinese market, with declining sales and increased competition from both ice cream brands and new beverage categories like tea drinks. The brand's high-end positioning is becoming less sustainable as consumer preferences shift towards more affordable options [4][10][33]. Group 1: Market Performance - In the third quarter of the 2025 fiscal year, General Mills reported a 5% year-over-year decline in net sales, with Haagen-Dazs experiencing a double-digit percentage drop in customer traffic in China [10][11]. - Over the past five years, General Mills' related revenue has decreased from $820 million to $720 million [12]. - Haagen-Dazs once accounted for over 50% of General Mills' ice cream business revenue, but has since closed 81 stores nationwide, indicating a significant contraction [6][8]. Group 2: Competitive Landscape - The rapid expansion of Dairy Queen (DQ) and the aggressive pricing strategy of brands like Mixue Ice Cream have intensified competition, squeezing Haagen-Dazs' market share [7][8]. - New tea drink brands have emerged as formidable competitors, with their pricing strategies and marketing approaches drawing consumers away from traditional ice cream offerings [23][30]. - Haagen-Dazs has attempted to diversify its offerings by introducing coffee and yogurt products, but these efforts have not significantly improved its competitive position [28][36]. Group 3: Brand Positioning and Strategy - Haagen-Dazs has historically positioned itself as a luxury brand, with its double-scoop ice cream priced at $9.89 in China, the highest globally [14][16]. - The brand's strategy involved aligning with luxury brands and creating a premium in-store experience, but this approach is now challenged by the rise of more affordable alternatives [22][44]. - The brand's reliance on physical stores and high-end locations has become a liability as consumer preferences shift towards more casual and affordable dining experiences [19][31]. Group 4: Supply Chain and Operational Challenges - Haagen-Dazs faces high operational costs due to the need for cold chain logistics, which complicates its ability to compete with lower-cost tea drink brands [47][48]. - The brand's ice cream products have a short shelf life and require strict temperature controls, making it difficult to scale operations in the same way as tea brands [47][49]. - Despite attempts to boost retail and e-commerce channels, the inherent nature of ice cream as a product limits its online sales potential, with only 20% penetration in 2021 [35][36].

Core Viewpoint - Haagen-Dazs is facing significant challenges in the Chinese market, with declining sales and increased competition from both ice cream brands and new beverage categories like milk tea, leading to a potential reevaluation of its business strategy in China [3][4][5][7]. Group 1: Market Performance - In the past year, Haagen-Dazs closed 81 stores nationwide, reflecting a struggle to maintain its market presence amid fierce competition [5]. - General Mills reported a 5% year-over-year decline in net sales for the third quarter of fiscal year 2025, with Haagen-Dazs experiencing a double-digit percentage drop in customer traffic in China [7]. - Over the past five years, General Mills' related revenue has decreased from $820 million to $720 million [9]. Group 2: Competitive Landscape - Haagen-Dazs is being squeezed not only by direct competitors like Dairy Queen (DQ) and Mixue Ice Cream but also by the rising popularity of milk tea brands, which have become significant competitors in the dessert space [5][19]. - The entry of new players like Heytea and Nayuki has shifted consumer preferences, leading to a decline in Haagen-Dazs' market share [24][25]. Group 3: Brand Positioning and Strategy - Haagen-Dazs has historically positioned itself as a premium brand, with the average price of a double scoop ice cream in China at $9.89, the highest globally [11][12]. - The brand's strategy included creating a luxurious in-store experience and leveraging gift-giving opportunities, such as the introduction of Haagen-Dazs mooncakes, which once accounted for 28% of its revenue in China [16]. - However, the brand's high-end positioning is now at risk as it competes with more affordable options from milk tea brands, which have successfully captured a larger consumer base [27][30]. Group 4: Operational Challenges - Haagen-Dazs has attempted to pivot towards retail and e-commerce channels, establishing a new division to integrate various sales channels, but faces challenges due to the low online penetration of ice cream sales [25][26]. - The brand's ice cream products are difficult to scale due to high supply chain costs and the need for strict temperature controls during transportation and storage [37][38]. - Despite promotional efforts, such as discounted coffee to attract customers, the core ice cream product line remains constrained in terms of pricing flexibility [36][39]. Group 5: Future Outlook - The brand's immediate challenge is to redefine its product offerings and pricing strategy to remain relevant in a market increasingly dominated by lower-priced competitors [43][44].

Group 1 - Haagen-Dazs China significantly contributed to General Mills' ice cream business, accounting for half of its revenue in 2017, but rumors of selling its Chinese stores have emerged for 2025 [1] - General Mills denied the sale plans, but Haagen-Dazs is facing increasing competition and has closed 81 stores nationwide in the past year [2][3] - The brand's sales have declined, with a reported 10% drop in customer traffic in its Chinese stores, reflecting broader struggles in the global market [6] Group 2 - Haagen-Dazs' revenue in the past five years fell from $820 million to $720 million, indicating a significant downturn [7] - The brand's premium pricing strategy, with an average price of $9.89 for a double scoop in China, is the highest globally, but it faces challenges from lower-priced competitors [9][11] - The brand's historical positioning as a luxury product has shifted, as it now competes with a variety of cold dessert products, including tea drinks [4][19] Group 3 - The rise of new tea beverage brands has intensified competition, with Haagen-Dazs struggling to maintain its market share [20][28] - The brand's attempt to diversify by opening a coffee shop in Shanghai was a response to the competitive landscape, but it still faces challenges from established players like Starbucks [21][22] - Haagen-Dazs has shifted focus to retail and e-commerce channels, but the ice cream market's low online penetration complicates this strategy [29][30] Group 4 - The pricing strategies of new tea brands have shifted, with products now priced between 15-25 yuan, making them more accessible to a broader audience [32] - The expansion of tea brands into shopping centers has displaced traditional ice cream brands like Haagen-Dazs, which has struggled to adapt [27][33] - Haagen-Dazs' high operational costs and supply chain challenges hinder its ability to compete effectively with the more agile tea brands [43][45] Group 5 - The brand's ice cream products face limitations in scaling due to their perishable nature and high cold chain costs, making it difficult to compete on price [43][44] - Haagen-Dazs has attempted promotional strategies to attract customers, but its core ice cream line remains difficult to expand rapidly [42][46] - The brand's future may depend on finding unique ingredients and repositioning itself in the market to maintain its premium image [49][50]

Core Viewpoint - Haagen-Dazs is facing significant challenges in the Chinese market, with declining sales and increased competition from both ice cream brands and new beverage categories like tea drinks. The brand's high-end positioning is becoming less sustainable as consumer preferences shift towards more affordable options. Group 1: Market Performance - In FY2025 Q3, General Mills reported a 5% decline in net sales, with Haagen-Dazs experiencing a double-digit percentage drop in customer traffic in China [9] - Over the past five years, General Mills' related revenue has decreased from $820 million to $720 million [10] - Haagen-Dazs once had 400 out of 900 global stores in China, contributing over 50% of its profits, but has since closed 81 stores nationwide [5][13] Group 2: Competitive Landscape - The rapid expansion of Dairy Queen (DQ) and the rise of brands like Mixue Ice City, which offers ice cream at 2 yuan, have significantly squeezed Haagen-Dazs' market space [6] - New tea drink brands have emerged as formidable competitors, with Haagen-Dazs inadvertently entering the same market segment [22][34] - The shift in consumer preferences towards tea drinks has led to Haagen-Dazs losing its competitive edge, as evidenced by its store relocations and downsizing [34][35] Group 3: Brand Positioning and Strategy - Haagen-Dazs has historically positioned itself as a luxury brand, with the highest average price for a double scoop ice cream in China at $9.89 [12][14] - The brand's strategy included creating a luxurious in-store experience and leveraging gift-giving opportunities, such as the introduction of mooncakes [17][21] - However, the brand's high pricing strategy is now being challenged by the increasing affordability of competing products, particularly in the tea drink segment [38][40] Group 4: Operational Challenges - Haagen-Dazs has attempted to pivot towards retail and e-commerce channels, but the ice cream market's low online penetration (20% as of 2021) poses significant challenges [35] - The brand faces high cold chain costs and short shelf life for its products, making it difficult to compete with the operational efficiency of tea brands [47][49] - Despite promotional efforts, such as discounted coffee to attract customers, the core ice cream product line remains difficult to scale due to its inherent supply chain constraints [50][52]