The American ice cream brand Häagen-Dazs was once dubbed the “Louis Vuitton of ice cream” in China for its high-end appeal. At its peak, it operated 466 stores across the country. However, since mid-June, outlets such as Bloomberg have reported that the brand is in the process of selling off nearly half of all its stores in China and is already in negotiations. Despite the shift, Häagen-Dazs will continue selling its products through supermarkets and convenience stores.
Häagen-Dazs entered the Chinese market in 1996, where it has faced increasingly fierce competition from its American rival, Dairy Queen, as well as from local high-end brands. Since last year, even more premium-priced gelato brands, such as Ye Gelato (野人先生), known for its long daily queues in Beijing, have become a significant threat. Affordable local brands such as Pobeice (波比艾斯) are also putting pressure on the lower end of the market, making Häagen-Dazs’s position difficult to defend. These local competitors also have the edge over Häagen-Dazs, as their products are freshly scooped. By June 2025, there will only be around 250 shops remaining in China.
Häagen-Dazs’s parent company, General Mills, later responded to the claim about the sell-off of stores, saying that it wouldn’t comment on rumours. However, the CEO of General Mills, Jeff Harmening, did mention that foot traffic to Häagen-Dazs offline stores in China has been declining by double-digit percentages. Stores are indeed closing.
Häagen-Dazs is instead expanding its presence in supermarkets and convenience stores, as well as on platforms such as Meituan and Taobao. With group buys and sales from retailers and platforms, Häagen-Dazs is now competing in the FMCG price war. Hermening’s announcement on increasing investment in ice cream sticks seems to confirm this.