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China’s Bubble Tea Boom: Top 10 of Popular Milk Tea Shops in the PRC

China’s bubble tea (aka pearl milk tea) market is booming: these are the top 10 popular milk tea shops in the PRC.

Ryan Gandolfo

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WHAT’S ON WEIBO ARCHIVE | PREMIUM CONTENT ARTICLE

With an ancient historical tradition of drinking tea, Chinese consumers are now turning to a different cup of tea; the iced and creamy bubble tea is a national favorite that’s also crossing borders and becoming more popular outside of Taiwan and mainland China. What’s on Weibo provides an introduction to the bubble tea craze and a top 10 of milk tea shops in mainland China.

April 30 has recently been named National Bubble Tea Day by the US-based milk tea chain Kung Fu Tea, which aims to introduce bubble tea and its culture to consumers all around the world.

The launch of this brand-new ‘National Bubble Tea Day’ and the general growing presence of milk tea shops in various countries shows the attraction of bubble tea – both in and outside China.

More Milk Tea than Coffee

Pearl milk tea or bubble tea, also known as ‘boba’ (bōbà nǎichá 波霸奶茶/ zhēnzhū nǎichá 珍珠奶茶), was first invented in Taiwan in 1988 – and has since become an important part of Taiwanese food culture. Over the past decade, the bubble tea craze has also blown over to mainland China.

For those unfamiliar with the drink; most pearl milk tea products contain an iced tea base and milk, with chewy tapioca pearls and sugar. Although this is a standard recipe, China’s many bubble milk tea shops and chains now have a growing selection of fruit flavored bubble tea or chocolate flavored bubble tea beside their original flavored bubble tea.

Since milk tea came to the mainland market in 1996, it has beaten coffee as a drink in terms of popularity. According to China marketing platform lbzuo.com (鹿豹座), Chinese now consume five times more milk tea than coffee. After the arrival of pearl milk tea to mainland China, coffee has taken a backseat, meaning that milk tea, in 15 years, beat what coffee in China did in 130 years. Bubble tea consumption continues to rise at a high rate each year.

Early on, pearl milk tea products were primarily targeted at young, female students between the ages of 15 and 25. Over recent years, however, the demographics have expanded as more men and working professionals are joining the craze.

The alternative to Starbucks

What makes pearl milk tea such a tantalizing drink to so many? Some say it is the combinations of having a drink and chewy snack in one, others claim the flavors are unrivaled, especially when compared to coffee; while western countries are immersed in the coffee lifestyle, China is more invested in milk tea. 

This also has to do with China’s ancient tea culture. Although coffee has gradually become more popular in mainland China since the arrival of large chains such as Starbucks, some experts, such as tea entrepreneur Jiang Jiadao, say it is not about the coffee itself, but about new realities of modern life, where people want to pick up a quick drink or sit down somewhere with a friend in between meetings.

Long lines in front of a milk tea shop.

“It’s not because they love the coffee,” Jiang told SCMP: “The popularity of Starbucks doesn’t have anything to do with changing tastes for coffee instead of tea, or more love of Western culture. I think we love the lifestyle it stands for. If we can offer a similar lifestyle and experience over tea, this would work.”

And it seems to be working. People do not just love the drink’s taste and texture, bubble tea has also become more popular in China – especially amongst the younger generations – because they love the style and image of China’s new trendy tea house brands.

As reported by Caixin Global, Chinese bubble tea makers recently have been further building on their cool bubble tea image by merging with bookstores, popular clothing brands, or restaurant chains.

Mango Cheese Milk Tea

To attract more customers in a growingly competitive industry, milk tea brands now also add popular new flavors, snacks, and sweets to their menu. Recently, the so-called ‘dirty [chocolate] bread’ or ‘zang zang bao’ went viral as it was placed on the menu of various milk tea shops, conquering the hearts of Beijing’s milk tea lovers.

The ‘dirty bread’ is a popular snack sold by milk tea shops.

Some milk tea stores are also staying ahead of their competition by releasing products that grab people’s attention. The chain Happy Tea, for example, released their ‘Mango Cheese Tea’ after they found that many Chinese social media users search for both ‘mangos’ and ‘cheese’.

On Chinese social media, the bubble tea trend is clear from the many photos posted of the drink every single minute. “After a long day of work, all I need is my bubble tea,” are among the things written along with colorful and appealing pearl milk tea pics.

Drinking Bubble Tea is something to show to social media followers; a trendy drink, a lifestyle.

Some netizens express the sheer joy pearl milk tea can bring to people, with various celebrity idols now also endorsing China’s major milk tea shops, such as Yi Dian Dian (1點點).

Netizen @CLSD writes: “Tonight on my way home from work I made a detour at Yi Dian Dian. As I waited in line a while, I could see everyone’s smiles as they walked out with their milk tea. People who enjoy milk tea are so lovely. It’s indescribable. My favorite singer is also a milk tea enthusiast…”

Others express their new-found love for the drink, writing: “I’m done for. I just started liking milk tea…”

Recently, long queues outside of milk tea shops have become a daily occurrence in major cities throughout China.* The craze for milk tea has been aided by strategic placement of stores nearby schools and office buildings. More often you can see milk tea brought into restaurants, schools, and offices. In contrast to coffee, milk tea is consumed virtually any time of the day.

The Most Popular Milk Tea Shops in China

Here is a top 10 of the most popular milk tea brands in China, of which many already have or will expand outside of Taiwan or mainland China. This list is compiled based on various sources, including Chinese online marketing magazines and Chinese food bloggers (e.g. 91yinpin.com, mroyal.cn, sina.com, sohu.com):

 

● #1 Yi Dian Dian (1點點 or 一点点奶茶)

Yi Dian Dian started in Taipei in 2010. The chain specializes in Taiwanese style milk tea, fruit tea, as well as desserts. Currently, Yi Dian Dian has over 600 stores in China and the Philippines. The company is expanding operations into countries such as England, Thailand, and Japan. Their main clientele is young students and professionals.

 

● #2 HEYTEA(喜茶)

HEYTEA, formerly called Royal Tea (皇茶), was founded in 2012 by the Guangdong-born Yunchen Nie (聂云宸), who aspired to launch a Starbucks-style brand in the tea market. It has worked; the company now has 80 outlets in 13 cities. HEYTEA is the innovator behind “cheese tea” (奶盖茶, sweet creamy tea). Since this creation, they have concentrated on finding and incorporating high quality tea into their line of products. In 2016, they received a 100 million yuan outside investment.

 

● #3 Coco (coco都可奶茶)

Coco first opened in Taipei in 1997. Over the last 20 years, they have opened over 2000 stores worldwide with locations in the US, UK, Thailand, and Korea among others. Coco offers customers a variety of beverages that meet a wide range of taste preferences. They also perform regular health and safety checks as well as fresh ingredients to put consumer worries at ease.

 

● #4 Gong Cha(薡御贡茶)

The milk tea shop with the most international exposure, Gong Cha started in Taiwan. Since 2006, this premium milk tea shop has become one of the largest in the world with more than 1,500 locations from Hong Kong to South Korea, New Zealand, Australia, USA, Singapore, and other countries.

 

● #5 Yunyang Royal (云仰皇茶)

This brand has also been dubbed the “Hermes of the milk tea industry” because of its exquisite quality and higher price. It is a relatively new player in the milk tea market, only founded in 2016 in Dongguan, and has introduced a range of interesting flavors, including cheese rose Oolong, cheese cream cocoa, or milk salt mountain green tea.

 


 

● #6 China Fruit Time(鲜果时间)

This shop was founded in Beijing in 2007, mainly focused on the take-out beverage market. It was an immediate success, with the franchise chain opening 40 new stores within a year after its founding. The brand mainly focuses on being “fresh, stylish, and healthy” and now has shops all over mainland China.

 

● #7 Utepia(乌茶邦)

Utepia, Wu Cha Bang in Chinese, is a stylish milk tea franchise that is very new and based on the idea of being the “celebrity milk tea” – a very strong brand identity that is all about targeting young generations with a love for classy, traditional products. Although the company is new, some media predict 2018 will be the breakthrough year for this brand.

 

● #8 Happy Lemon(快乐柠檬)

Happy Lemon was founded in Shanghai in 2006, although its owner (Albert Wu) has been active in the tea business since the early 1990s in Taipei. The main company behind this brand, Yummy Town Holdings Corporation, also owns RBT Tea Cafe (仙踪林) and other brands, which have stores in many countries including mainland South Korea, Japan, Britain, the United States, Australia and Canada.

 

● #9 Dakasi(大卡司)

Dakasi is another milk tea shop with Taiwanese roots since 1990, which arrived in mainland China in 1999, where it set up its headquarters in Guangdong. It is a somewhat simple and classic milk tea brand that is especially loved by younger generations.

 

● #10 Attakai Kokoro Tea Shop(恋暖の初茶)

Although it has a Japanese name, this franchise tea shop is actually Chinese and just focuses on the fashionable Japanese style and quality ingredients, which the brand claims all come from Japan, Taiwan, and the US. It distinguishes itself from other brands by offering high-quality products at a relatively low price.

By Ryan Gandolfo and Manya Koetse


Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Ryan Gandolfo is an Economics graduate from Miami who has worked and lived in Shanghai, Baoding, and Guangzhou. He is interested in China's growing role in the global economy and closely follows the development of major Chinese technology firms. 

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3 Comments

3 Comments

  1. Steven Wrege

    June 20, 2018 at 7:06 am

    I have have tried most of the shops you have listed but I found that Happy Lemon was the best of them all. RBT is great too if you want a little more food to go with your tea.
    I’m really excited that the are expanding in the United States since I now live there.

  2. LinYun

    November 7, 2018 at 6:31 am

    Hello! Reading milk tea shops in China makes me feel nostalgic, reminding me of the days when I lived there and frequently went to Yi Dian Dian. I was interested to read how milk tea shops are rising in popularity among young consumers. I would be interested to further research how these brands will adjust their marketing strategy to appeal to the younger public. I was surprised to learn that people in China drink more milk tea than coffee. On the other hand, tea is a drink closer to the Chinese culture than coffee which makes marketing to consumers easier. While there are many affordable milk tea shops in China, the ones in the US are much more expensive. The tea shops here position themselves as an exotic product. In the following years, I wonder if their marketing strategy in the US will change to attract a larger consumer base.

  3. Olivier

    November 23, 2020 at 10:58 am

    super interesting article, just share on twitter.

    tea franchise has become a massive trends for consumers and small investors in China.
    Small bets, good profit, it was the investment of the year 2019

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China Brands, Marketing & Consumers

Signals: Hasan Piker’s China Trip & the Unexpected Journey of a Chinese School Uniform to Angola

Hasan Piker’s controversial China tour, a Chinese school uniform resurfaces in Africa, a new winter hotspot, why Chinese elites ‘run’ to Tokyo, and more.

Manya Koetse

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🌊 Signals — Week 47 (2025)
Part of Eye on Digital China, Signals highlights slower trends and online currents behind the daily scroll. This edition was sent to paid subscribers — subscribe to receive the next issue in your inbox.

Welcome to another edition of Eye on Digital China. Different from the China Trend Watch (check the latest one here if you missed it), this edition, part of the new Signals series, is about the slower side of China’s social media: the recurring themes and underlying shifts that signal broader trends beyond the quick daily headlines. Together with the deeper dives, the three combined aim to give you clear updates and a fuller overview of what’s happening in China’s online conversations & digital spaces.

For the coming two weeks, I’ll be traveling from Beijing to Chongqing and beyond (more on that soon) so please bear with me if my posting frequency dips a little. I’ll be sure to pick it up again soon and will do my best to keep you updated along the way. In the meantime, if you know of a must-try hotpot in Chongqing, please do let me know.

In this newsletter: Hasan Piker’s controversial China tour, a Chinese school uniform in Angola, a new winter hotspot, discussions on what happens to your Wechat after you die, why Chinese elites rùn to Tokyo, and more. Let’s dive in.

Slower Scrolls
  • 💰 The richest woman in China, according to the latest list by Hurun Research Institute, is the “queen of pharmaceuticals” Zhong Huijuan (钟慧娟) who has accumulated 141 billion yuan (over 19 billion USD). Women account for over 22% of Chinese billionaires (those with more than 5 billion RMB), underscoring China’s globally leading position in producing wealthy female entrepreneurs.
  • 🧩 What happens to your WeChat after you die? A user who registered for NetEase Music with a newly reassigned phone number unexpectedly gained access to the late singer Coco Lee’s (李玟) account, as the number had originally belonged to her. The incident has reignited debate over how digital accounts should be handled after death, prompting platforms like NetEase and Tencent to reconsider policies on long-inactive accounts and take stronger measures to protect them.
  • 📱 Although millions of viewers swoon over micro-dramas with fantasy storylines where rich, powerful men win over the “girl next door” through money and status, Chinese regulators are now stepping in to curb exaggerated plots featuring the so-called “dominant CEO” (霸道总裁) archetype, signaling stricter oversight for the booming short drama market.
  • ☕ A popular Beijing coffee chain calling itself “People’s Cafe” (人民咖啡馆), with its style and logo evoking nationalist visual nostalgia, has changed its name after facing criticism for building its brand – including pricey coffee and merchandise – on Mao era and state-media political connotations. The cafe is now ‘Yachao People’s Cafe’ (要潮人民咖啡馆).
  • 👀 Parents were recently shocked to see erotic ads appear on the Chinese nursery rhymes and children’s learning app BabyBus (宝宝巴士), which is meant for kids ages 0–8. BabyBus has since apologized, but the incident has sparked discussions about how to keep children safe from such content.
  • 🧧The 2026 holiday schedule has continued to be a big topic of conversation as it includes a 9-day long Spring Festival break (from February 15 to February 23), making it the longest Lunar New Year holiday on record. The move not only gives people more time for family reunions, but also gives a huge boost to the domestic travel industry.
Currents

Hasan Piker’s Chinese Tour & The US–China Content Honeymoon

[#HasanAbi#] [#Hasanabi柠檬哥#]

Livestreamer Hasan Piker during his visit to Tiananmen Square flag-rising ceremony.

It’s not time for the end-of-year overviews just yet – but I’ll already say that 2025 was the US–China ‘honeymoon’ year for content creation. It’s when China became “cool,” appealing, and eye-grabbing for young Western social media users, particularly Americans. The recent China trip of the prominent American online streamer Hasan Piker fits into that context.

This left-wing political commentator also known as ‘HasanAbi’ (3 million followers on Twitch, recently profiled by the New York Times) arrived in China for a two-week trip on November 11.

Piker screenshot from the interview with CGTN, published on CGTN.

His visit has been controversial on English-language social media, especially because Piker, known for his criticism of America (which he calls imperialist), has been overly praising China: calling himself “full Chinese,” waving the Chinese flag, joining state media outlet CGTN for an interview on China and the US, and gloating over a first-edition copy of Quotations from Chairman Mao (the Little Red Book). He portrays China as heavily misrepresented in the West and as a country the United States should learn from.

Hasan Piker did an interview with CGTN, posing with Li Jingjing 李菁菁.

During his livestreaming tour, Hasan, who is nicknamed “lemonbro” (柠檬哥) by Chinese netizens, also joined Chinese platforms Bilibili and Xiaohongshu.

But despite all the talk about Piker in the American online media sphere, online conversations, clicks, and views within China are underwhelming. As of now, he has around 24,000 followers on Bilibili, and he’s barely a topic of conversation on mainstream feeds.

Piker’s visit stands in stark contrast to that of American YouTuber IShowSpeed (Darren Watkins), who toured China in March. With lengthy livestreams from Beijing to Chongqing, his popularity exploded in China, where he came to be seen by many as a representative of cultural diplomacy.

IShowspeed in China, March 2025.

IShowSpeed’s success followed another peak moment in online US–China cultural exchange. In January 2025, waves of foreign TikTok users and popular creators migrated to the Chinese lifestyle app Xiaohongshu amid the looming TikTok ban.

Initially, the mass migration of American users to Xiaohongshu was a symbolic protest against Trump and US policies. In a playful act of political defiance, they downloaded Xiaohongshu to show they weren’t scared of government warnings about Chinese data collection. (For clarity: while TikTok is a made-in-China app, it is not accessible inside mainland China, where Douyin is the domestic version run by the same parent company).

The influx of foreigners — who were quickly nicknamed “TikTok refugees” — soon turned into a moment of cultural celebration. As American creators introduced themselves, Chinese users welcomed them warmly, eager to practice English and teach newcomers how to navigate the app. Discussions about language, culture, and societal differences flourished. Before long, “TikTok refugees” and “Xiaohongshu natives” were collaborating on homework assignments, swapping recipes, and bonding through humor. It was a rare moment of social media doing what we hope it can do: connect people, build bridges, and replace prejudice with curiosity.

Some of that same enthusiasm was also visible during IShowSpeed’s China tour. Despite the tour inevitably getting entangled with political and commercial interests, much of it was simply about an American boy swept up in the high energy of China’s vibrant cities and everything they offer.

Different from IShowSpeed, who is known for his meme-worthy online presence, Piker is primarily known for his radical political views. His China enthusiasm feels driven less by cultural curiosity and more by his critique of America.

Because of his stances — such as describing the US as a police state — it’s easy for Western critics to accuse him of hypocrisy in praising China, especially after a brief run-in with security police while livestreaming at Tiananmen Square.

Seen in broader context, Piker’s China trip reflects a shift in how China is used in American online discourse.

Before, it was Chinese ‘public intellectuals’ (公知) who praised the US as a ‘lighthouse country’ (灯塔国), a beacon of democracy, to indirectly critique China and promote a Western modernization model. Later, Chinese online influencers showcased their lives abroad to emphasize how much ‘brighter the moon’ was outside China.

In the post-Covid years, the current reversed: Western content creators, from TikTok influencers to political commentators, increasingly use China to make arguments that are fundamentally about America.

Between these cycles, authentic cultural curiosity gets pushed to the sidelines. The TikTok-refugee moment in early January may have been the closest we’ve come in years: a brief window where Chinese and American users met each other with curiosity, camaraderie, and creativity.

Hasan’s tour, in contrast, reflects a newer phase, one where China is increasingly used as a stage for Western political identity rather than a complex and diverse country to understand on its own terms. I think the honeymoon phase is over.

“Liu Sihan, Your School Uniform Ended Up in Angola”: China’s Second-Hand Clothing in Africa

[#刘思涵你的校服在非洲火了#]

A Chinese school uniform went viral after a Chinese social media user spotted it in Angola.

“Liu Sihan, your schooluniform is hot in Africa” (刘思涵你的校服在非洲火了) is a sentence that unexpectedly trended after a Chinese blogger named Xiao Le (小乐) shared a video of a schoolkid in Angola wearing a Chinese second-hand uniform from Qingdao Xushuilu Primary School, that had the nametag Liu Sihan on it.

The topic sparked discussions about what actually happens to clothing after it’s donated, and many people were surprised to learn how widely Chinese discarded clothing circulates in parts of Africa.

Liu Sihan’s mother, whose daughter is now a 9th grader in Qingdao, had previously donated the uniform to a community clothing donation box (社区旧衣回收箱) after Liu outgrew it. She intended it to help someone in need, never imagining it to travel all the way to Africa.

In light of this story, one netizen shared a video showing a local African market selling all kinds of Chinese school items, including backpacks, and people wearing clothing once belonging to workers for Chinese delivery platforms. “In Africa, you can see school uniforms from all parts of China, and even Meituan and Eleme outfits,” one blogger wrote.

When it comes to second-hand clothing trade, we know much more about Europe–Africa and US–Africa flows than about Chinese exports, and it seems there haven’t been many studies on this specific topic yet. Still, alongside China’s rapid economic transformations, the rise of fast fashion, and the fact that China is the world’s largest producer and consumer of textiles, the country now has an enormous abundance of second-hand clothing.

According to a 2023 study by Wu et al. (link), China still has a long way to go in sustainable clothing disposal. Around 40% of Chinese consumers either keep unwanted clothes at home or throw them away.

But there may be a shift underway. Donation options are expanding quickly, from government bins to brand programs, and from second-hand stores to online platforms that offer at-home pickup.

Chinese social media users posting images of school/work uniforms from China worn by Africans.

As awareness grows around the benefits of donating clothing (reducing waste, supporting sustainability, and the emotional satisfaction of giving), donation rates may rise significantly. The story of Liu Sihan’s uniform, which many found amusing, might even encourage more people to donate. And if that happens, scenes of African children (and adults) wearing Chinese-donated clothes may become much more common than they now are.


Digital Echoes

Laojunshan: New Hotspot in Cold Winter

Images from Xiaohongshu, 背包里的星子, 旅行定制师小漾

Go to Zibo for BBQ, go to Tianshui for malatang, go to Harbin for the Ice Festival, cycle to Kaifeng for soup dumplings, or head to Dunhuang to ride a camel — over recent years, a number of Chinese domestic destinations have turned into viral hotspots, boosted by online marketing initiatives and Xiaohongshu influencers.

This year, Laojunshan is among the places climbing the trending lists as a must-visit spot for its spectacular snow-covered landscapes that remind many of classical Chinese paintings. Laojunshan (老君山), a scenic mountain in Henan Province, is attracting more domestic tourists for winter excursions.

Xiaohongshu is filled with travel tips: how to get there from Luoyang station (by bus), and the best times of day to catch the snow in perfect light (7–9 AM or around 6–6:30 PM).

With Laojunshan, we see a familiar pattern: local tourism bureaus, state media, and influencers collectively driving new waves of visitors to the area, bringing crucial revenue to local industries during what would otherwise be slower winter months.

Platform Notes

WeChat New Features & Hong Kong Police on Douyin

🟦 WeChat has been gradually rolling out a new feature that allows users to recall a batch of messages all at once, which saves you the frantic effort of deleting each message individually after realizing you sent them to the wrong group (or just regret a late-night rant). Many users are welcoming the update, along with another feature that lets you delete a contact without wiping the entire chat history. This is useful for anyone who wants to preserve evidence of what happened before cutting ties.

🟦The Hong Kong Police Force recently celebrated its two-year anniversary on Douyin (the Chinese version of TikTok), having accumulated nearly 5 million followers during that time. To mark the occasion, they invited actor Simon Yam to record a commemorative video for their channel (@香港警察). The presence of the Hong Kong Police on the Chinese app — and the approachable, meme-friendly way they’ve chosen to engage with younger mainland audiences — is yet another signal of Hong Kong institutions’ strategic alignment with mainland China’s digital infrastructure, a shift that has been gradually taking place. The anniversary video proved popular on Douyin, attracting thousands of likes and comments.

The Extra Read

Why Chinese Elite Rùn to Japan (by ChinaTalk)


Over the past week, Japan has been trending every single day on Chinese social media in light of escalating bilateral tensions after Japanese PM Takaichi made remarks about Taiwan that China views as a direct military threat. The diplomatic freeze is triggering all kinds of trends, from rising anti-Japanese sentiment online and a ban on Japanese seafood imports to Chinese authorities warning citizens not to travel to Japan.

You’d think Chinese people would want to be anywhere but Japan right now — but the reality is far more nuanced.

In a recent feature in ChinaTalk, Jordan Schneider interviewed Japanese journalist & researcher Takehiro Masutomo (舛友雄大) who has just published a book about Japan’s new Chinese diaspora, explaining what draws Chinese dissidents, intellectuals, billionaires, and middle-class families to Tokyo.

The book is titled Run Ri: 潤日 Following the Footsteps of Elite Chinese Escaping to Japan (only available in Japanese and Traditional Chinese for now). (The word Rùn 润/潤, by the way, is Chinese online slang and meme expresses the desire to escape the country.)

A very interesting read on how Chinese communities are settling in Japan, a place they see as freer than Hong Kong and safer than the U.S., and one they’re surprisingly optimistic about — even more so than the Japanese themselves.

Read it here on ChinaTalk.

Thanks for reading this Eye on Digital China Signals. For fast-moving trends and deeper dives, keep an eye on the upcoming newsletters.

And if you just so happen to be reading this without a subscription and appreciate my work, consider joining to receive future issues straight in your inbox.

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This Eye on Digital China newsletter is co-published for subscribers on both Substack and the main site. If you’re registered on both platforms, you’ll receive duplicate emails — so if that bothers you, please pick your preferred platform and unsubscribe from the other.

Many thanks to Miranda Barnes for helping curate some of the topics in this edition.

Manya

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China Brands, Marketing & Consumers

House of Wahaha: Zong Fuli Resigns

In the year following her father’s death, Zong Fuli dealt with controversy after controversy as the head of Chinese food & beverage giant Wahaha.

Manya Koetse

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It’s a bit like a Succession-style corporate drama 🍿.

Over the past few years, we’ve covered stories surrounding Chinese beverage giant Wahaha (娃哈哈) several times — and with good reason.

Since the passing of its much-beloved founder Zong Qinghou (宗庆后) in March 2024, the company has been caught in waves of internal turmoil.

Some context: Wahaha is regarded as a patriotic brand in China — not only because it’s the country’s equivalent of Coca-Cola or PepsiCo (they even launched their own cola in 1998 called “Future Cola” 非常可乐, with the slogan “The future will be better” 未来会更好), but also because its iconic drinks are tied to the childhood memories of millions.

Future Cola by Wahaha via Wikipedia.

There’s also the famous 2006 story when Zong Qinghou refused a buyout offer from Danone. Although the details of that deal are complex, the rejection was widely seen as Zong’s defense of a Chinese brand against foreign takeover, contributing to his status as a national business hero.

After the death of Zong, his daughter Zong Fuli, also known as Kelly Zong (宗馥莉), took over.

🔹 But Zong Fuli soon faced controversy after controversy, including revelations that Wahaha had outsourced production of some bottled water lines to cheaper contractors (link).

🔹 There was also a high-profile family inheritance dispute involving three illegitimate children of Zong Qinghou, now living in the US, who sued Zong Fuli in Hong Kong courts, claiming they were each entitled to multi-million-dollar trust funds and assets.

🔹 More legal trouble arrived when regulators and other shareholders objected to Zong Fuli using the “Wahaha” mark through subsidiaries and for new products outside officially approved channels (the company has 46% state ownership).

⚡️ The trending news of the moment is that Zong Fuli has officially resigned from all positions at Wahaha Group as chairman, legal representative, and director. She reportedly resigned on September 12, after which she started her own brand named “Wa Xiao Zong” (娃小宗). One related hashtag received over 320 million views on Weibo (#宗馥莉已经辞职#). Wahaha’s board confirmed the move on October 10, appointing Xu Simin (许思敏) as the new General Manager. Zong remains Wahaha’s second-largest shareholder.

🔹 To complicate matters further, Zong’s uncle, Zong Wei (宗伟), has now launched a rival brand — Hu Xiao Wa (沪小娃) — with product lines and distribution networks nearly identical to Wahaha’s.

As explained by Weibo blogger Tusiji (兔撕鸡大老爷), under Zong Qinghou, Wahaha relied on a family-run “feudal” system with various family-controlled factories. Zong Fuli allegedly tried to dismantle this system to centralize power, fracturing the Wahaha brand and angering both relatives and state investors.

Others also claim that Zong had already been engaged in a major “De-Wahaha-ization” (去娃哈哈化) campaign long before her resignation.

In August of this year, Zong gave an exclusive interview to Caijing (财经) magazine where she addressed leadership challenges and public controversies. In the interview, Zong spoke more about her views on running Wahaha, advocating long-term strategic growth over short-term results, and sharing her determination to not let controversy distract her from business operations. That plan seems to have failed.

While Chinese netizens are watching this family brand war unfold, many are rooting for Zong after everything she has gone through – they feel her father left her in a complicated mess after his death.

At the same time, others believe she tried to run Wahaha in a modern “Western” way and blame her for that.

For the brand image of Wahaha, the whole ordeal is a huge blow. Many people are now vowing not to buy the brand again.

As for Zong’s new brand, we’ll have to wait for the next episode in this family company drama to see how it unfolds.

By Manya Koetse

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