Report: General Mills might sell Häagen-Dazs ice cream stores in China

General Mills is considering selling its Häagen-Dazs ice cream shops in China, according to Bloomberg.

The Golden Valley-based food company could seek hundreds of millions of dollars for the sale, Bloomberg reported, citing anonymous sources. Those sources said the sale process could start this year, if one happens at all.

General Mills said Wednesday the company “does not comment on rumors or speculation.”

At one point, there were more than 400 Häagen-Dazs shops across China, according to the General Mills China LinkedIn page.

The business is struggling because of a weaker Chinese economy, General Mills CEO Jeff Harmening said at an investor conference earlier this month.

“Consumers are pulling back. They feel the economic challenges,” Harmening said. “We’ve seen that in our Häagen-Dazs shops. Traffic is down double-digits in our Häagen-Dazs shops because people aren’t eating away from home as much, similar to the U.S.”

At the same time, he said, the premium ice cream is selling well out of grocery stores in China.

Overall, General Mills and other food manufacturers are contending with cost-conscious consumers who are buying less brand-name food across the grocery store. That is putting additional pressure on the company’s portfolio to focus on growth areas; General Mills is already in the process of selling Yoplait.

Earlier this year, General Mills signaled it wants to cut $100 million in costs to help return to growth. Then last month, the company indicated it will be paying out at least $70 million in severance costs, though offered no details about the timing or scope of any layoffs.

Across the entire $130 million, multiyear restructuring, TD Cowen analysts expect General Mills will “reduce administrative staff by 4-6%.”

Pillsbury bought Häagen-Dazs in 1983, and when General Mills bought Pillsbury in 2001, the U.S. and Canada rights to Häagen-Dazs went to Nestle. General Mills continues to run the brand elsewhere around the world.