Core Viewpoint - The article discusses the ongoing power struggle within Wahaha Group, focusing on Zong Fuli's attempts to assert control over the brand and the company amidst internal conflicts and external pressures [1][11]. Group 1: Zong Fuli's Leadership and Strategy - Zong Fuli initiated a significant power play by resigning last year, which ultimately led to her becoming the chairman of Wahaha and acquiring all shares held by her father, Zong Qinghou [2][5]. - Recently, Zong Fuli has proposed to replace the iconic "Wahaha" brand with a new brand called "Wawa Xiaozong," which she controls through Hongsheng Beverage [3][4]. - The Wahaha brand is valued at over 90 billion, and changing it could erase decades of brand equity built during Zong Qinghou's era [4][5]. Group 2: Internal Conflicts and Brand Control - Zong Fuli currently holds 29.4% of Wahaha Group, while the employee stockholding committee owns 24.6%, limiting her control over the brand [5][12]. - Attempts to transfer the Wahaha trademark to a company she controls were unsuccessful, prompting her to accelerate the rebranding process [5][6]. - Zong Fuli's strategy includes phasing out Wahaha-related enterprises and promoting new brands, indicating a significant shift in the company's direction [6][7]. Group 3: Market Challenges and Dealer Resistance - The introduction of "Wawa Xiaozong" faces skepticism from dealers, with reports indicating that 99% of Wahaha dealers are unwilling to sell the new brand [8][9]. - Despite a projected revenue increase to 700 billion in 2024, dealers are under pressure to meet higher sales targets without new hit products [9][10]. - The previous brand KELLYONE, also launched by Zong Fuli, failed to gain traction, raising concerns about the viability of new brands [10][11]. Group 4: Legal and Inheritance Issues - Zong Fuli is embroiled in a legal battle over inheritance rights, which complicates her control over Wahaha Group and its assets [12][13]. - The ongoing inheritance dispute with her siblings poses a significant threat to her leadership and the company's future direction [13][14]. - The brand change may be a strategic move to mitigate the impact of these legal challenges and assert her authority [13][14].

Core Viewpoint - The introduction of the new brand "Wah Xiaozong" by Wahaha, set to replace the iconic "Wahaha" brand starting in 2026, is perceived as a significant risk involving power and interest dynamics within the company and its stakeholders [1][4][5] Group 1: Brand Transition - The rebranding to "Wah Xiaozong" is officially described as a move towards brand compliance and youthfulness, but it raises concerns about consumer recognition and market share, as the established "Wahaha" brand has over 30 years of consumer familiarity [1] - The beverage industry is characterized by quick consumer purchasing decisions, meaning a new and unfamiliar brand name could lead to reduced visibility on shelves and a likely decline in market share in the short term [1] Group 2: Stakeholder Impact - The ownership structure of Wahaha is complex, with Zhejiang state-owned assets holding 46%, while the founder's daughter, Zong Fuli, controls 29.4%, and an employee stockholding committee holds 24.6%. This indicates that Zong Fuli does not have absolute control [4] - The state-owned shareholders have not received dividends since 2008, with a total expected payout of over 3 billion yuan that has not materialized, indicating a potential marginalization if "Wah Xiaozong" becomes the new growth focus [4] - Employees, who hold approximately 24.6% of the company through a stockholding committee, may face a disruption in their earnings as the new brand could sever their ties to the original brand's profitability [4] Group 3: Family Dynamics - The introduction of "Wah Xiaozong" could weaken the claims of Zong Fuli's relatives regarding the inheritance of the "Wahaha" brand and its profits, as it may separate future profit sources from the existing family estate [5] - The move is seen as a high-stakes gamble for Zong Fuli, who risks her credibility and the trust of thousands of employees and shareholders if the rebranding fails to resonate with consumers [5] - The brand name change is not merely a marketing decision but also a strategic maneuver in a power struggle, with the outcome potentially reshaping the company's future and Zong Fuli's position within it [5]