Core Insights - General Mills is considering selling its Häagen-Dazs ice cream stores in China, with a potential sale process expected to start within the year, aiming for a price in the hundreds of millions of dollars, although negotiations are still in the early stages and may not result in a sale [1][2] - Häagen-Dazs has experienced a significant decline in customer traffic in China, with reports indicating a double-digit drop, leading to the closure of several underperforming stores [2][4] - The brand's market position has weakened due to changing consumer preferences and increased competition from domestic ice cream brands that offer lower prices and a focus on fresh, handmade products [8][12] Company Performance - As of January 2024, Häagen-Dazs had 466 stores in China, but this number has decreased to 263, indicating a significant reduction in its retail presence [2] - The company has attempted to adapt by expanding its sales channels and implementing price reductions, with notable discounts on products sold through convenience stores and e-commerce platforms [5][7] - Despite some growth in specific product lines, overall net sales in the Chinese market fell by 3% year-on-year in the third quarter of fiscal year 2025 [7] Market Dynamics - The competitive landscape in the Chinese ice cream market has shifted, with domestic brands like Bobo Ice and Romanlin gaining traction by offering products at lower price points, typically between 10-20 yuan [8][12] - These domestic brands have rapidly expanded their store counts, with Bobo Ice reaching over 1,200 locations and Romanlin opening more than 140 stores in the first half of 2025 [10][12] - Additionally, tea and coffee brands are entering the ice cream market, leveraging their existing customer bases and offering products at competitive prices, further challenging Häagen-Dazs' market share [12][13]