General Mills is selling its Häagen-Dazs shop operations in mainland China to a buyer group that includes QSR chain operator Ningji.
The US food giant said the consortium will be granted an exclusive licence to use the Häagen-Dazs brand for ice-cream shops and a gifting business in the market.
General Mills said the sale “elevates the company’s focus on its brands and channels that provide the strongest opportunities for profitable growth”.
Financial terms were not disclosed.
The deal is expected to close this year, subject to regulatory approvals and other customary conditions.
Ningji has a network of over 3,000 quick-service retail tea shops in China.
General Mills said it will retain ownership of, and continue to run, Häagen-Dazs retail and foodservice businesses in China outside the shop business being sold.
The disposal is the latest step in a reshaping of General Mills’ portfolio as it looks to focus on areas offering stronger returns.
The group said nearly one-third of its net sales base had been changed through acquisitions and disposals since its 2018 fiscal year.
In March, the maker of Cheerios and Pillsbury agreed to sell its Brazil business, including the Yoki and Kitano brands, to Grupo 3corações.
In January, General Mills also offloaded US tomato-products brand Muir Glen to local business Violet Foods.
The company also plans to shut three facilities in the US state of Missouri by the end of its 2029 fiscal year.
In the nine months to 22 February, General Mills' net sales were down 7.4% at $13.81bn.
Operating profit rose 6.3% to $2.97bn, helped by divestiture-related items, while net earnings attributable to General Mills slipped 4% to $1.92bn.
When the company reported its nine-month and third-quarter figures in March, chairman and CEO Jeff Harmening said General Mills was seeing “clear signs of progress on key fundamentals including household penetration, baseline sales, distribution, and market share”.
He added: “These are important metrics that give us confidence that better results are ahead for General Mills.”
