It is reported that the new tea brand Linji Lemon Tea is in talks to acquire Häagen-Dazs’ store business in China. A Linji representative responded by saying they would “not disclose any details,” while Häagen-Dazs’ parent company General Mills and its China and global headquarters have yet to comment. Public data shows that the number of Häagen-Dazs stores in China has plummeted from 557 in 2019 to just 262 as of May 2026, a decline of nearly half. The brand has also withdrawn from cities such as Nanning, Weifang, and Shijiazhuang, while some cities like Taiyuan and Nanchang now have only a single remaining store. Last year, General Mills CEO Jeff Harmening publicly disclosed that customer traffic at Häagen-Dazs stores in China had declined by a double-digit percentage. In the second quarter of fiscal 2025, the operating profit of its international business fell by more than 31% year over year, with the Chinese market being one of the main drags. News of a potential sale first emerged last June, at which time General Mills only stated that it “would not comment on rumors,” and negotiations are reportedly still in the early stages.
Linji opened its first store in Changsha in 2021, with investors including ByteDance and Tencent, and focuses on the lemon tea chain segment. If the acquisition comes to fruition, it would be another typical case of a foreign food and beverage brand exiting the direct-store model by divesting its store operations — following the sale of 60% of Starbucks China to Boyu Capital and the transfer of a majority stake in Burger King China to a Chinese-backed institution. Häagen-Dazs has adopted a direct-store model in China (operated by General Mills Trading (Shanghai) Co., Ltd.), making its asset-heavy structure a significant burden amid declining traffic and high rents. Meanwhile, low-cost domestic competitors like Mixue Ice Cream & Tea and Zhong Xue Gao continue to erode its consumption scenarios, further squeezing the brand’s premium pricing power.