Core Viewpoint - The return of Zong Fuli to Wahaha Group as president of Hongsheng Beverage Group marks a significant development in the ongoing internal dynamics of the company, following a period of disputes and speculation regarding leadership and brand management [1][5][15]. Group 1: Leadership Changes - Zong Fuli has returned to Wahaha Group after resigning from her positions as chairman and legal representative, amidst controversies regarding her leadership and the establishment of a new brand, "Wawa Xiaozong" [4][5]. - Despite her resignation, Zong Fuli retains significant ownership stakes in Wahaha Group, holding approximately 54% of the company's shares, which allows her to maintain considerable influence over its operations [6][12]. - The leadership position of chairman remains uncertain, with no official announcement regarding who will lead the company moving forward [15][18]. Group 2: Brand Management and Strategy - The "Wawa Xiaozong" brand, which Zong Fuli aimed to develop independently, has faced challenges in gaining trust from distributors, leading to its potential abandonment following her return to Wahaha [5][9]. - The Wahaha brand's value is estimated at 91.19 billion yuan for 2024, highlighting its significance as a core asset of the company [8]. - The internal conflict regarding the use of the "Wahaha" trademark appears to have been resolved, allowing the brand to continue its operations under the established name [12][13]. Group 3: Market Environment and Challenges - The competitive landscape for fast-moving consumer goods (FMCG) is increasingly fierce, with rivals like China Resources Beverage and Nongfu Spring intensifying market pressures [20]. - The need for Wahaha Group to stabilize its operations and restore distributor confidence is critical for its future growth and brand integrity [20]. - Zong Fuli's aggressive management style contrasts with the more conservative approach favored by state-owned shareholders, indicating a potential need for compromise in leadership strategies [20].

Core Viewpoint - The article discusses the strategic shift of Wahaha under the leadership of Zong Fuli, who is transitioning to a new brand "Wah Xiaozong" starting from the 2026 sales year due to legal compliance issues surrounding the use of the Wahaha brand [2][5][6]. Group 1: Brand Transition - Zong Fuli's "Zong Sheng" enterprises will officially adopt the new brand "Wah Xiaozong" from the 2026 sales quarter [2]. - The decision to change the brand is driven by the need to maintain compliance with brand usage regulations, as the current ownership structure requires unanimous consent from all shareholders to use the Wahaha trademark [6]. - The first major product under the new brand, a sugar-free oolong tea, was launched but did not perform well in the market, indicating challenges in brand recognition [12]. Group 2: Shareholder Dynamics - The largest shareholder of Wahaha is a state-owned enterprise holding 46%, while Zong Fuli holds 29.4%, complicating her ability to make unilateral decisions regarding the brand [6]. - The ongoing legal disputes with half-siblings over inheritance and trust rights have further complicated the situation for Zong Fuli, impacting her strategic plans [2][6]. Group 3: Market Position and Challenges - Wahaha's brand value is significant, with estimates around 911.87 billion yuan, making it a major player in the Chinese beverage market [9]. - Despite the brand's strength, the transition to "Wah Xiaozong" is seen as a temporary measure to address legal issues rather than a long-term strategy [10]. - The company faces challenges in rebuilding trust with distributors and reshaping consumer perceptions of the new brand [14]. Group 4: Financial Performance - Recent reports indicate a decline in Wahaha's sales, with current figures at 80% of last year's peak performance [15]. - Zong Fuli acknowledged the pressures faced by the fast-moving consumer goods industry and the need for strategic adjustments to meet performance targets [16]. - The company is focusing on core beverage operations and has begun to eliminate underperforming distributors to streamline operations [16].