Core Viewpoint - Wahaha is undergoing a significant restructuring by eliminating distributors with annual sales below 3 million yuan, leading to disputes over payments and a reshuffling of the distribution network [1][4][5]. Group 1: Distributor Strategy - Wahaha is cutting off distributors with annual sales below 3 million yuan, which has caused some distributors to end their partnerships and others to be merged into larger distributors, resulting in payment disputes [1][4]. - The sales targets for distributors have increased significantly, with some reporting a 50% increase in sales targets for 2025 compared to 2024, leading to heightened pressure and anxiety among distributors [3][6]. - The restructuring aims to consolidate smaller distributors into larger ones to address issues like debt and product distribution, but it also raises concerns about the management of larger distributors [6][7]. Group 2: Market Performance - Despite the restructuring, Wahaha's beverage sales net income increased by 53% year-on-year in 2024, returning to market levels seen over a decade ago [7]. - However, the increase in sales is attributed to a surge in consumer sentiment following the passing of the founder, which may not be sustainable as consumer interest wanes [8][9]. - The company faces challenges with brand aging and a lack of innovation in product development, which could impact future sales if not addressed [8][9]. Group 3: Financial and Operational Issues - Distributors have reported issues with inventory management, with some facing stockpiles exceeding 3 million yuan due to increased sales targets and market competition [3][6]. - There are ongoing disputes regarding unpaid sales fees and the handling of equipment like iceboxes that were purchased for promotional purposes but became redundant after the cancellation of distributor qualifications [5][6]. - The management of the consolidation process has been criticized for its lack of clarity and organization, leading to further complications for affected distributors [5][6].

Core Viewpoint - The article discusses the recent challenges faced by Wahaha Group under the leadership of its chairperson, Zong Fuli, particularly focusing on the impact of a heritage dispute and the company's aggressive strategy to streamline its distribution network by eliminating underperforming distributors [2][3][5]. Group 1: Business Operations and Distributor Management - Under Zong Fuli's leadership, Wahaha has adopted a stringent approach, cutting off distributors with annual sales below 3 million yuan, leading to sudden terminations and unresolved payments for some distributors [3][6][7]. - Distributors report increased sales targets, with some facing a 50% increase in their annual sales goals starting from 2025, and the threat of losing their distributor status if targets are not met [6][7]. - The company is undergoing a significant restructuring of its distribution network, with larger distributors taking over smaller ones to address issues like debt and product distribution [9][10]. Group 2: Market Performance and Sales Challenges - Despite being in a peak sales season, Wahaha's product presence in retail stores is reportedly low, facing stiff competition from brands like Nongfu Spring [5][6]. - Some distributors have experienced stockpiling issues, with inventory levels exceeding normal limits due to increased sales targets and market conditions [7][8]. - The company's sales performance has shown a significant increase, with a 53% year-on-year growth in beverage sales revenue in 2024, returning to market levels seen over a decade ago [13]. Group 3: Brand Perception and Future Outlook - The heritage dispute surrounding the company has raised concerns about consumer trust, particularly affecting products that rely on emotional connections, such as AD Calcium Milk and bottled water [15]. - Experts suggest that the recent sales surge may be more related to emotional consumer spending following the founder's passing rather than the effectiveness of the distributor restructuring [14][15]. - To sustain growth, Wahaha must focus on brand rejuvenation, product innovation, and modern marketing strategies to regain consumer trust and adapt to changing market demands [14][15].

Core Viewpoint - The recent inheritance dispute surrounding Wahaha has raised concerns about its market performance and sales strategies under the leadership of Zong Fuli, who has implemented strict measures against underperforming distributors [1][3][12]. Group 1: Sales and Distribution Changes - Wahaha is eliminating distributors with annual sales below 3 million yuan, leading to sudden terminations and financial disputes over unpaid amounts [1][4][6]. - Distributors report increased sales targets, with some facing a 50% increase in their annual sales goals starting from 2025, and strict penalties for failing to meet these targets [4][11]. - The company is experiencing a significant reshuffle in its distribution channels, with smaller distributors being absorbed by larger ones, which has led to complications in payment settlements [6][9]. Group 2: Market Competition and Performance - Wahaha's product presence in retail stores is reportedly low, facing stiff competition from brands like Nongfu Spring, which has better sales performance [3][12]. - Despite the challenges, Wahaha's net revenue from beverage sales increased by 53% in 2024, returning to market levels seen over a decade ago [11][14]. - The company has faced supply issues, with reports of stock shortages and incomplete product offerings in some markets [3][4]. Group 3: Brand and Consumer Perception - The inheritance controversy has negatively impacted consumer trust and brand perception, particularly affecting products that rely on emotional connections, such as AD Calcium Milk and bottled water [12][13]. - Experts suggest that Wahaha's growth in 2024 was largely driven by a surge in emotional consumption following the passing of its founder, which may not be sustainable [12][14]. - To maintain sales momentum, Wahaha needs to focus on brand rejuvenation, new product development, and innovative marketing strategies to regain consumer trust [12][14].