Core Viewpoint - The article discusses the controversy surrounding Wahaha Group's decision to outsource the production of its bottled water, highlighting the internal reforms led by the new successor, Zong Fuli, and the implications for the company's operational strategy and brand image [2][3]. Group 1: Outsourcing Controversy - Wahaha Group has engaged in outsourcing its bottled water production to companies like Jinmailang, which has sparked public debate about the brand's commitment to self-production [4][6]. - The outsourcing arrangement began in May 2024, with Jinmailang producing over 500 million bottles for Wahaha, raising questions about pricing and consumer choice [6][7]. - The involvement of other companies in the outsourcing process, including those controlled by Hongsheng Beverage, has led to concerns about the legitimacy of the contracts and potential profit-sharing issues [8][9]. Group 2: Internal Reforms and Production Changes - Since Zong Fuli took over, Wahaha has closed 18 production lines across various locations, despite claiming a need for increased production capacity [10][11]. - The closures have affected factories that are not part of the "Hongsheng system," indicating a strategic shift in production management [11][12]. - Zong Fuli's reforms appear to be aimed at consolidating control over Wahaha by mirroring the management practices of Hongsheng Beverage, which has been expanding its production capabilities [13][14]. Group 3: Market Dynamics and Future Challenges - The article suggests that Zong Fuli's approach may lead to a significant restructuring of Wahaha's business model, with a focus on integrating operations with Hongsheng Beverage [15][16]. - The transition has faced resistance from employees and stakeholders, indicating potential challenges in balancing internal reforms with market demands [17][18]. - The ongoing changes in production, sales, and management structures reflect a broader strategy to reshape Wahaha's market presence and operational efficiency [18].

Core Viewpoint - The article discusses the ongoing internal conflicts and operational challenges faced by Wahaha Group under the leadership of Zong Fuli, highlighting issues such as factory shutdowns, employee dissatisfaction, and management style changes [2][12]. Group 1: Internal Conflicts and Employee Issues - Since Zong Fuli took over, there have been continuous controversies regarding the reform of Wahaha, including factory shutdowns and significant salary reductions for employees [2][12]. - Reports indicate that the dairy production line at Wahaha's Shaanxi company was shut down on February 16, affecting over 50 frontline workers who faced drastic income reductions without a clear resolution from the company [5][7]. - Employees have expressed frustration over the lack of communication from management regarding the reasons for the shutdown and their future employment status, leading to multiple complaints to local labor departments [7][9]. Group 2: Management and Operational Changes - The management's response to the shutdown has been criticized as inadequate, with a vague work arrangement proposal that did not specify the company name or provide concrete solutions [8][9]. - There are reports of a broader trend of layoffs, with rumors circulating about a potential 30% workforce reduction within the company, which employees feel is being executed in a non-transparent manner [10][11]. - Zong Fuli's management style is seen as a departure from the previous family-style management, aiming to eliminate inefficiencies but causing unrest among employees who feel their rights are being undermined [12][14]. Group 3: Financial Performance - Despite the internal turmoil, Wahaha Group's revenue for 2024 is projected to reach approximately 70 billion yuan, indicating a significant recovery in performance under Zong Fuli's leadership [12].