The Mumbai offices of AZB & Partners have advised General Mills India, the wholly-owned subsidiary of American Fortune 500 company, General Mills. The AZB team, led by Partner Kalpana Merchant, helped General Mills India to set up a franchise agreement for their Haagen-Dazs ice cream cafe in India. However, a marketing mistake on the part of General Mills has led to accusations of discrimination and racism against the Haagen-Dazs brand.
The Mumbai offices of AZB & Partners have advised General Mills India, the wholly-owned subsidiary of American Fortune 500 company, General Mills. The AZB team, led by Partner Kalpana Merchant, helped General Mills India to set up a franchisee for their Haagen-Dazs ice cream cafe in India. The sole franchisee rights holder for the super-premium ice-cream brand in India is RTC Restaurants, which runs the Ruby Tuesday chain of restaurants. The first Haagen-Dazs outlet opened at Select CityWalk Mall in South Delhi on December 10.
Haagen-Dazs' entry into the Indian market marks the launch of the super-premium ice cream segment. Although Nestle has been operating some outlets of its super-premium brand Movenpick in India, the response has been lukewarm, at best. However, a marketing mistake on the part of General Mills has ensured that Haagen-Dazs may not be received with the eager anticipation the company hopes for. A poster on the storefront advertising an exclusive preview for international travelers, with "access restricted only to holders of international passports" has led to a flurry of protests from across the country, and even several countries abroad. The company has been accused of discrimination, with some critics going so far as to claim that the Haagen-Dazs is promoting apartheid.
General Mills, pre-empting legal action, has issued an apology over what they term a "wrong choice of words", and are insisting that there was no discrimination, and no customers were turned away due to their nationality.
Haagen-Dazs was created in New York in 1961, and bought by Pillsbury in 1983. In 2001, following General Mills' acquisition of Pillsbury, the company also became the owner of the ice-cream brand. The Indian subsidiary retails the popular Pillsbury atta and Betty Crocker cake mixes in India.
