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.
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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