Core Viewpoint - The internal family conflict within Wahaha has escalated, leading to the emergence of new brands that may threaten the company's market position, while the overall beverage industry remains highly competitive and challenging [2][3][5]. Group 1: Company Dynamics - After 142 days in charge, Zong Fuli resigned from her positions at Wahaha, with Xu Simin appointed as the new general manager, leaving the chairman position vacant [3]. - Concurrently, the family members have begun launching competing brands, such as "Wawa Xiaozong" and "Wawa Xiaozhi," indicating a significant internal conflict [4][20]. - The emergence of these new brands is seen as a direct challenge to Wahaha's market dominance, with family members leveraging the Wahaha name for their new products [4][22]. Group 2: Industry Challenges - The Chinese beverage market is described as a "graveyard-level" competitive environment, with an industry scale projected to exceed 1.3 trillion yuan in 2024, growing at 6.1% year-on-year [5]. - New beverage brands face a high failure rate, with 70% of new products not surviving beyond 12 months, and over 8,600 companies being deregistered annually [5]. - The importance of physical retail presence is emphasized, as 73% of beverage sales occur in offline settings, highlighting the critical role of iceboxes in driving sales [6][7]. Group 3: Brand Positioning and Market Strategy - The new brands lack the necessary distribution and marketing strategies to compete effectively with Wahaha, which has a significant advantage in terms of market penetration and brand recognition [19][21]. - Wahaha's strategy of securing exclusive shelf space in retail locations has been effective, with approximately 60,000 custom iceboxes deployed nationwide, ensuring high visibility for its products [19]. - The new brands, while attempting to capitalize on Wahaha's legacy, struggle with brand identity and consumer recognition, leading to a diluted market presence [15][22].

Core Viewpoint - The resignation of Zong Fuli from her position as chairwoman of Wahaha Group has raised questions about the company's ownership structure and the implications of her departure on the company's governance and control [1][4]. Group 1: Company Ownership Structure - Wahaha Group is classified as a mixed-ownership enterprise rather than a state-owned enterprise, as the state-owned capital does not exceed half of the board members and lacks controlling power [4][11]. - Zong Fuli holds a 29.4% stake in Wahaha, while Hangzhou Wen Shang Lv holds 46%, and the employee stockholding committee holds 24.6%, giving Zong Fuli significant decision-making power through a unified action agreement [4][10]. - The state-owned capital in Wahaha does not contribute financially, which means it does not receive dividends, reinforcing the notion that Wahaha is primarily a private enterprise controlled by the Zong family [10][11]. Group 2: Historical Context - Wahaha's origins trace back to a school-run enterprise in Hangzhou, where Zong Qinghou took over a loss-making distribution department in 1987 and later established the first product, Wahaha Children's Nutritional Liquid, in collaboration with Zhejiang University [7][9]. - The initial funding for Wahaha came from a loan and sales revenue, indicating that the company was built on private capital rather than state investment [7][10].

Core Viewpoint - The article emphasizes the significant role of Zhejiang entrepreneurs in shaping China's beverage industry, highlighting their innovative spirit and market insight that have led to the emergence of numerous influential beverage brands in a trillion-yuan market [5][55]. Group 1: Key Companies and Founders - Wahaha, founded by Zong Qinghou, became a dominant player in the beverage market after its establishment in 1991, achieving rapid growth and significant market penetration [8][10]. - Nongfu Spring, led by Zhong Shanshan, has successfully positioned itself in the bottled water segment and achieved a revenue of 428.96 billion yuan in the previous year, despite facing challenges [20][19]. - Liziyuan, founded by Li Guoping, initially thrived with its sweet milk products but has faced declining sales, reaching 13.54 billion yuan in 2024, a 1.92% decrease year-on-year [28][30]. - Chengxiang Valley, established by Song Wei, has expanded its product line and production bases significantly, with sales reaching 6 billion yuan in 2023 [34][35]. - Xiangpiaopiao, founded by Jiang Jianqi, pioneered the instant milk tea category and has seen substantial sales growth, with a peak of 15 billion cups sold in a year [39][40]. - Guming, founded by Wang Yunan, has successfully entered the new tea drink market and recently went public, focusing on fresh and healthy beverage offerings [44][46]. - Fino, established by Zhang Kai, has gained recognition for its coconut-based products and aims to create unique value in the beverage market [53][54]. Group 2: Market Trends and Insights - The beverage industry in China is transitioning from scale expansion to quality upgrades, with Zhejiang entrepreneurs leading this change through innovative products and marketing strategies [55][56]. - The competition among beverage giants like Wahaha and Nongfu Spring reflects a broader trend of brand differentiation and consumer preference for unique flavors and health-oriented products [24][25]. - The article notes the importance of adapting to market changes, as seen in Liziyuan's shift to focus on lower-tier markets to regain competitiveness [27][30].