Chinese premium tea chain Ningji is set to expand beyond beverages after joining an investor group that has agreed to acquire the Häagen-Dazs retail store business in mainland China from General Mills, in a deal that reflects the growing strength of homegrown franchise brands in the country’s foodservice sector. Financial terms of the transaction were not disclosed, and the deal is expected to close during calendar 2026, subject to regulatory approvals and customary closing conditions.
General Mills announced that it has entered into a definitive agreement to sell its Häagen-Dazs shop business in mainland China to an investor consortium that includes Ningji, one of China’s fastest-growing tea brands. As part of the agreement, the investor group will receive an exclusive licence to operate the Häagen-Dazs brand across ice cream shops and gifting businesses in mainland China, while General Mills will continue to own the Häagen-Dazs brand and maintain its retail and foodservice business outside the transferred shop operations. The company will also continue supplying Häagen-Dazs products through retail and foodservice channels in China.
The transaction supports General Mills’ broader Accelerate strategy, which focuses on investing behind brands and channels with the strongest long-term growth potential.
In the company’s official announcement, General Mills said: “The transaction aligns with General Mills’ Accelerate strategy and elevates the company’s focus on its brands and channels that provide the strongest opportunities for profitable growth.”
For Ningji, the acquisition represents a major diversification beyond its core beverage business. Founded in 2020, the company has rapidly emerged as one of China’s fastest-growing premium fresh lemon tea brands. Operating through a franchise-led expansion model, Ningji has built a network of more than 3,000 premium quick-service tea shops across China and Southeast Asia, supported by a centralized supply chain and localized product innovation. The company has also begun expanding into the United States under its Bobobaba brand, demonstrating ambitions to become an international foodservice operator.
The Häagen-Dazs business being transferred includes around 170 retail stores across mainland China, according to people familiar with the transaction. The premium ice cream chain once operated around 400 stores in China at its peak, highlighting how the market has evolved amid slowing consumer spending and intensifying competition from domestic dessert and beverage chains.
Häagen-Dazs entered mainland China in 1996 and built a strong reputation as a premium lifestyle and gifting brand. However, in recent years it has faced increasing pressure as Chinese consumers shifted toward newer domestic brands offering more localized flavours, lighter desserts and significantly lower prices. Agile local brands have also gained an advantage through faster product development, stronger digital marketing capabilities and quicker responses to social media trends.
Despite divesting the shop business, General Mills will continue to benefit from the Häagen-Dazs brand in China through packaged retail products and foodservice distribution. The company said retaining these channels enables it to focus on areas offering stronger profitable growth while leveraging local expertise to operate the retail stores.
The deal also reflects a broader shift among multinational consumer brands operating in China. Several global companies have increasingly partnered with or transferred local operations to domestic investors as competition from Chinese brands intensifies and consumer demand evolves. Recent examples include Starbucks’ sale of a controlling stake in its China business to a local investment consortium and Restaurant Brands International’s restructuring of Burger King China through a domestic partner.
For the franchise industry, the acquisition underscores the growing influence of Chinese franchise operators that have scaled rapidly through localized innovation, efficient supply chains and asset-light expansion models. By taking over one of the world’s most recognized premium dessert retail networks in mainland China, Ningji is making a significant leap from a high-growth tea franchise into a diversified multi-brand foodservice operator.
