Core Viewpoint - The article discusses the internal family conflict within the Wahaha Group, highlighting the rivalry between Zong Fuli and her uncle Zong Zehou, who has launched a competing beverage brand using similar production resources and strategies as Wahaha [1][5][13]. Group 1: Family Rivalry - Zong Zehou has publicly claimed that "Wahaha was built on my back," leading to public ridicule and questioning of his contributions to the company [3][5]. - The article portrays Zong Zehou's actions as opportunistic, suggesting he is leveraging family ties to undermine Zong Fuli's leadership and control over Wahaha [11][20]. - Zong Fuli's decision to cut ties with family members involved in the business is seen as a necessary move to protect the company's interests from perceived "parasitic" relationships [12][20]. Group 2: Business Practices - Zong Zehou's new brand "Yipin Zongshi" closely mimics Wahaha's products, using the same production facilities and even employing former Wahaha staff, raising concerns about ethical business practices [5][13][14]. - The competition is described as more than just market rivalry; it is characterized as a family feud where Zong Zehou is accused of using Wahaha's resources to establish his own brand [9][16]. - The article highlights the chaotic situation in production lines, where materials for both brands are stored together, complicating operations and raising operational risks [14][16]. Group 3: Public Perception and Commentary - Public sentiment is largely critical of Zong Zehou, with social media users mocking his claims of being a founder based on minimal contributions [7][20]. - The narrative reflects broader concerns about family dynamics in business, suggesting that having relatives in a company can lead to conflicts and inefficiencies [20]. - The article concludes with a humorous suggestion for a public competition between family members to determine control over the company, indicating the absurdity of the situation [20].

Core Viewpoint - The controversy surrounding "Wahaha OEM" continues as consumers report that some Wahaha bottled water is produced by Jinmailang, leading to concerns about product quality and brand integrity [1][12]. Group 1: Company Operations - Wahaha has confirmed a contract manufacturing relationship with Jinmailang, stating that some batches of bottled water did not pass factory sampling tests, and the partnership will end in April 2025 [1]. - The company has established over 80 production bases across the country and employs nearly 30,000 people, with ongoing construction of multiple factories to enhance production capacity [12]. - Wahaha's production strategy includes both direct operations and authorized partnerships with various companies for bottled water production [11][10]. Group 2: Industry Context - Contract manufacturing is a common practice in the fast-moving consumer goods sector, allowing for effective resource allocation due to high market demand and standardized products [12]. - The bottled water industry often sees companies utilizing OEM arrangements, which can be beneficial but may pose risks to brand reputation if quality issues arise at the manufacturing partner [12]. - Consumer feedback on social media platforms has highlighted concerns about the impact of different production locations on product taste, indicating a need for consistent quality control across all manufacturing partners [1].

Core Insights - Wahaha is facing significant challenges due to controversies surrounding its outsourcing practices and internal conflicts, which have raised concerns about brand integrity and operational stability [1][2][3][4][5] Group 1: Outsourcing Controversy - Starting in 2024, consumers reported that Wahaha's bottled water was produced by its subcontractors, with prices 30% higher than its own brand, leading to questions about brand premium masking cost-cutting [1] - In March 2025, a complaint arose regarding a lactobacillus drink containing black sediment, causing health issues for children, revealing quality control gaps in the outsourcing chain [1] - Wahaha acknowledged its outsourcing relationship with Jinmailang and announced the termination of this partnership in April 2025, but did not clarify why it chose outsourcing despite underutilized production capacity [1] Group 2: Internal Turmoil - In February 2025, production was halted at Shaanxi Wahaha Dairy, forcing employees to stop working, with similar incidents occurring at other facilities [2] - The root of these conflicts lies in the clash between the traditional family-style management and the new reform initiatives led by Zong Fuli, which have resulted in a loss of employee morale [2] Group 3: Strategic Concerns - Despite a revenue rebound to 70 billion yuan in 2024, Wahaha's core products have not seen innovation, with packaging remaining unchanged for 20 years and a low convenience store stocking rate of under 30% [3] - The reliance on outsourcing has accelerated brand dilution, with significant layoffs and cuts in R&D, leading to concerns over product quality and increased costs [3] - The outsourcing model has created a vicious cycle of trust issues, as quality control risks are transferred to consumers, undermining brand credibility [3][4] Group 4: Industry Implications - Wahaha's strategic missteps during a period of industry restructuring are particularly detrimental, as the company struggles to balance rapid expansion through outsourcing with effective supply chain management and brand value [4] - The combination of internal management conflicts and external market pressures is pushing this once-prominent brand towards marginalization [4][5] Group 5: Conclusion - Wahaha's challenges reflect broader issues in family business succession and the difficulties of traditional brands undergoing transformation [5] - Immediate actions such as terminating outsourcing and addressing employee grievances are essential for rebuilding trust, while long-term success will depend on balancing reform efforts with cultural heritage and ensuring sustainable quality and cost management [5]