Core Points - Hongsheng Group will hold a dealer conference on November 18, with attendance criteria including cumulative sales of over 15 million yuan for the 2025 sales year, annual performance growth, and completion of the 2026 joint sales agreement [1] - The company has undergone a change in legal representative, with Zheng Qundi taking over from Zhu Lidan [3] - Recent personnel changes at Hongsheng include the departure of several long-term employees, possibly related to internal restructuring following the Wahaha employee representative conference [3] - The production center director, Yan Xuefeng, faced disciplinary scrutiny but has since resumed his position [3] - Wahaha Group has also seen leadership changes, with Zong Fuli resigning from key positions [3] - A new brand "Wawa Xiaozong" was announced by Hongsheng, but reports indicate it has not yet been launched in the market [3] - Zong Zehou, brother of Zong Qinghou, introduced a new brand "Wawa Xiaozhi" with ambitious sales targets and promotional strategies [4] - Zong Fuli attended a regional work meeting as president of Hongsheng, outlining future plans [4] Company Overview - Hongsheng Beverage Group was established in 2003, initially as a contract manufacturer for Wahaha [1] - Under Zong Fuli's leadership since 2007, the company has expanded from a single production base to a comprehensive beverage enterprise with 16 production sites and over 104 production lines, achieving an annual capacity exceeding 480 million boxes [1] - Following Zong Qinghou's passing in 2024, resources from Wahaha Group have been fully integrated into Hongsheng, including the sales team and core departments [1]

Core Viewpoint - The recent management upheaval at Hongsheng Beverage Group, including the departure of key executive Zhu Lidan, raises concerns about the company's stability and future direction, particularly as it relates to the Wahaha brand and its strategic initiatives under the leadership of Zong Fuli [1][3][9] Group 1: Management Changes - Zhu Lidan, a core executive of the Wahaha system, has left her position, and her office has been vacated, with no official response from Wahaha [1] - Zhu Lidan was previously the Director of the Management Center and Head of Human Resources, but her position is now listed as "pending" [3] - Another key figure, Yan Xuefeng, was investigated for disciplinary issues but has since resumed his role as the Production Center Director and General Manager of Xun'er Company [3][5] Group 2: Brand Strategy - Zong Fuli has announced a reversal of the decision to replace the "Wahaha" brand with a new brand "Wawa Xiaozong," indicating a shift back to the established brand for future sales [7] - The company had previously communicated plans to transition to "Wawa Xiaozong" for the 2026 sales year, but recent directives to distributors suggest a renewed focus on the "Wahaha" brand [7] - The brand "Wawa Xiaozong" had seen extensive trademark applications, indicating a significant investment in developing this new brand prior to the recent decision reversal [7] Group 3: Strategic Implications - The management changes and brand strategy shifts occur against a backdrop of increased competition and internal challenges following the passing of the founder, Zong Qinghou [9] - Analysts suggest that the company faces significant challenges in maintaining brand integrity and ensuring stakeholder interests are aligned, particularly with ongoing disputes over trademark usage and profit distribution [8][9] - The future of the Wahaha brand and the overall market position of the company remain uncertain as it navigates these internal and external pressures [9]

Core Viewpoint - The plan to replace the "Wahaha" brand with "Wawa Xiaozong" has been reversed after only 41 days, leading to a decision to continue using the "Wahaha" brand for sales in 2026 [4][11]. Brand Strategy - On October 23, 2023, it was confirmed that distributors received notifications to continue selling "Wahaha" products, ending a period of uncertainty for Shandong distributors [5][11]. - The initial plan to switch to "Wawa Xiaozong" was met with resistance, as the "Wahaha" brand has a long-standing market recognition that is difficult to replace [11][12]. Corporate Structure - Despite resigning from her positions at Wahaha Group, Zong Fuli continues to control Hongsheng Beverage Group, which operates independently but is linked to Wahaha [12][14]. - Hongsheng has expanded its business into high-end equipment manufacturing, raw material research, and has over 40 subsidiaries and 100 production lines, indicating a robust operational capacity [12][14]. Market Competition - The emergence of "Wawa Xiaozong" and "Wawa Xiaozhi" indicates increased competition within the Zong family, with both brands vying for market share [9][19]. - The competitive landscape is further complicated by the fact that "Wawa Xiaozhi" is also being promoted by Zong Zehou, Zong Fuli's uncle, suggesting a family rivalry in the beverage market [19]. Brand Development - "Wawa Xiaozong" had begun to establish its brand identity with multiple trademark applications, but the recent decision to revert to "Wahaha" has rendered these efforts moot [16][18]. - The anticipated product offerings under "Wawa Xiaozong" are now unlikely to reach consumers, indicating a significant setback for the brand [18].

Core Insights - The death of Wahaha Group's founder has led to historical legacy issues, making brand compliance a core challenge for the company [1] - Zong Fuli's resignation is linked to her desire to create a new brand "Wah Xiaozong," indicating internal family rifts and a complex interplay of business and emotions [1][5] - The emergence of competing brands "Wah Xiaozong" and "Wah Xiaozhi" highlights the power struggle within the Zong family, as they vie for market and brand influence [3][7] Brand and Market Dynamics - The brand usage rights being deemed "non-compliant" triggered Zong Fuli's resignation, revealing deeper power struggles within the family [5] - The actions of Hongsheng Beverage Group suggest an urgent need to stabilize the existing market, with distributors required to pay deposits, indicating a tightening of control and profit binding [5][15] - The competition between "Wah Xiaozong" and "Wah Xiaozhi" reflects a broader family power struggle, with market resources becoming the focal point of contention [7][11] Distributor Reactions and Market Implications - Distributors face a dilemma between continuing to sell Wahaha or switching to Wah Xiaozong, which impacts their future viability [7][11] - The internal family division is evident through the launch of the two brands, representing a clash of family factions and a battle for market control [11][13] - The choices made by distributors will significantly influence market direction, as hesitation could lead to marginalization [11][13] Broader Industry Context - The situation at Wahaha mirrors the challenges faced by traditional family businesses in modern commercial environments, highlighting the complexities of brand governance [15][17] - The ongoing family and market disputes at Wahaha may serve as a reflection of broader issues within the industry, raising questions about the future of brand management in China [17]

Core Viewpoint - The abrupt decision by Zong Fuli to abandon the new brand "Wahao" and continue with "Wahaha" highlights the challenges of brand transformation within a family-owned business, revealing the complexities of market dynamics and stakeholder interests [1][3][11]. Group 1: Brand Strategy and Market Dynamics - Zong Fuli's initial plan to create "Wahao" was driven by the desire to escape the constraints of the existing brand "Wahaha," which is burdened by historical issues and fragmented ownership [3][11]. - The attempt to launch a new brand was met with skepticism from distributors, who are more loyal to the established "Wahaha" brand rather than the new identity [5][7]. - The drastic reduction in the number of distributors and pressure on sales targets led to a backlash, with only one out of over fifty regions meeting payment obligations, resulting in production halts [8][9]. Group 2: Internal and External Stakeholder Reactions - The state-owned enterprise, as the largest shareholder, prioritized stability over family disputes, intervening to prevent potential market collapse due to the internal competition between Zong Fuli and Zong Zehou [9][11]. - The failure of "Wahao" and the awkward position of "Wahao Zhi" illustrate the difficulties in modernizing a family business while managing traditional structures and relationships [11][15]. - Zong Fuli's inconsistent strategic decisions have eroded trust among employees and partners, raising concerns about the long-term viability of the company's direction [13][15]. Group 3: Future Implications for the Company - The compromise to revert to "Wahaha" does not resolve underlying issues such as fragmented ownership and branding limitations, suggesting that the challenges of innovation and market adaptation remain [11][13]. - The situation serves as a cautionary tale about the risks of treating a brand as a pawn in family conflicts, emphasizing the need for a governance structure that respects market realities and stakeholder interests [15].

Core Viewpoint - The resignation of Zong Fuli has led to a significant shift in the distribution landscape for the Wahaha brand, with distributors now facing a choice between continuing with Wahaha or switching to the new brand "Wawa Xiaozong" controlled by Zong Fuli's Hongsheng Group [1][6]. Group 1: Company Changes - Zong Fuli resigned from all positions at Wahaha Group on September 12, 2023, following the necessary procedures through the company's shareholder and board meetings [1]. - Hongsheng Group, which was initially a contract manufacturer for Wahaha, has been actively applying for trademarks for "Wawa Xiaozong" across various product categories since early 2023 [1]. Group 2: Distributor Dynamics - Distributors have received notifications from Wahaha prohibiting them from representing "Wawa Xiaozong," threatening to revoke their Wahaha distribution rights if they do so [6]. - Currently, distributors are not yet required to make a choice between the two brands, but they are evaluating which option offers greater profitability [6]. Group 3: New Brand Launch - "Wawa Xiaozong" has launched its first product, a sugar-free Oolong tea priced at 4 yuan, which distinctly separates itself from traditional Wahaha branding [4]. - The brand has already signed 153 county-level distribution agreements and offers competitive pricing compared to Wahaha, with similar product formulations [12].

Core Viewpoint - The resignation of Zong Fuli has led to a significant shift in the distribution landscape of the Wahaha brand, with distributors now facing a choice between continuing with Wahaha or transitioning to the new brand "Wawa Xiaozong" [1][7]. Group 1: Company Changes - Zong Fuli resigned from her positions as legal representative, director, and chairman of Wahaha Group on September 12, following the necessary procedures through the company's shareholder and board meetings [1]. - The new brand "Wawa Xiaozong" is set to replace the Wahaha brand starting from the 2026 sales year, as stated in a notice from Hangzhou Wahaha Honghui Food and Beverage Co., Ltd. [1]. - The macro victory group, which Zong Fuli controls, has been actively applying for trademarks related to "Wawa Xiaozong" across various product categories, including food and beverages [1]. Group 2: Distributor Dynamics - Distributors have received notifications from Wahaha prohibiting them from representing "Wawa Xiaozong," with threats of losing their Wahaha distribution rights if they do so [7]. - Currently, "Wawa Xiaozong" has not fully launched its products, and distributors are still evaluating which brand offers better profitability [7]. - The competing brand "Wawa Xiaozhi," associated with Zong Fuli's uncle, has initiated its own recruitment activities for distributors, indicating a competitive market environment [7][12]. Group 3: Product Launch and Marketing - "Wawa Xiaozong" has introduced its first product, a sugar-free Oolong tea priced at 4 yuan, which distinguishes itself from traditional Wahaha packaging [5]. - The brand has already signed contracts with 153 clients, primarily in Zhejiang, and is targeting chain supermarkets and large distribution customers [12]. - The product line for "Wawa Xiaozhi" includes various items such as AD calcium milk, mineral water, and coconut water, with claims that the formulations are identical to Wahaha's but offered at lower prices [12].

Core Viewpoint - The resignation of Zong Fuli has led to a split among distributors regarding whether to continue with the "Wahaha" brand or switch to the new "Wawa Xiaozong" brand, with recent developments indicating a preference for the latter [1][4]. Group 1: Company Developments - Zong Fuli resigned from her positions at Wahaha Group on September 12, 2023, following the necessary procedures through the company's shareholder and board meetings [1]. - A notice from Hangzhou Wahaha Honghui Food and Beverage Co., Ltd. announced that starting from the 2026 sales year, the company will transition to the new brand "Wawa Xiaozong" to maintain compliance with brand usage [1]. - The new brand "Wawa Xiaozong" is under the Hongsheng Group, which was initially a contract manufacturer for Wahaha and has since expanded into a full beverage production solution provider [1]. Group 2: Distributor Reactions - Distributors have received notifications from Wahaha stating that they cannot represent "Wawa Xiaozong" without risking their Wahaha distribution qualifications [4]. - Distributors are currently evaluating which brand to support based on potential profitability, as "Wawa Xiaozong" has not yet fully launched in the market [4]. Group 3: Competitive Landscape - Zong Fuli's uncle, Zong Zehou, has launched a competing brand "Wawa Xiaozhi," which has begun its own recruitment activities for distributors [5]. - "Wawa Xiaozhi" offers products with similar formulations to Wahaha but at lower prices, and has already signed contracts with 153 clients, primarily in Zhejiang and other provinces [12]. - The recruitment for "Wawa Xiaozhi" does not require a deposit, and the initial purchase requirement is set at a minimum of 30,000 yuan [8].

Core Viewpoint - The resignation of Zong Fuli has led to a decisive shift among distributors regarding whether to continue with the "Wahaha" brand or to pursue the new brand "Wawaixiaozong" Group 1: Brand Transition - Distributors have confirmed receiving notifications from the macro-controlled business personnel of Zong Fuli, requiring them to pay a deposit to continue selling "Wahaha" brand products next year [2] - Zong Fuli's resignation from her positions at Wahaha to fully focus on the new brand "Wawaixiaozong" has garnered significant attention [3] - Reports indicate that Zong Fuli's resignation was primarily due to the "non-compliance" of the Wahaha trademark usage rights, prompting her to establish her own brand "Wawaixiaozong" [4] Group 2: Brand Development - Over a month ago, it was reported that the macro-controlled beverage company decided to launch the new brand "Wawaixiaozong" [5] - An internal document from Hangzhou Wahaha Honghui Food and Beverage Co., Ltd. mentioned that starting from the 2026 sales year, the company would replace the "Wahaha" brand with the new brand "Wawaixiaozong" to ensure compliance [5] - A Weibo account named "Wawaixiaozong" was verified on October 11, with over ten thousand followers, indicating strong initial interest in the new brand [5] Group 3: Competitive Landscape - Following Zong Fuli's resignation and the launch of "Wawaixiaozong," a new brand "Wawaxiaozhi" has also been introduced by Zong Fuli's uncle, Zong Qinghou's brother [6]

Core Viewpoint - The resignation of Zong Fuli has led to a significant shift in the distribution landscape for the Wahaha brand, with distributors now facing a choice between continuing with Wahaha or switching to the new brand "Wah Xiaozong" controlled by Zong Fuli's Hongsheng Group [1][8]. Group 1: Brand Transition - Zong Fuli resigned from her positions at Wahaha Group on September 12, 2023, and the company plans to transition to the new brand "Wah Xiaozong" starting from the 2026 sales year [1][2]. - Hongsheng Group has filed numerous trademark applications for "Wah Xiaozong" across various categories, including food and beverages, indicating a strategic expansion into multiple product lines [2]. Group 2: Distributor Dynamics - Distributors have received notifications from Wahaha prohibiting them from representing "Wah Xiaozong," threatening to revoke their Wahaha distribution rights if they do so [8]. - The competitive landscape is intensifying, with Zong Fuli's uncle, Zong Zehou, launching a competing brand "Wah Xiaozhi," which is actively recruiting distributors [8][10]. Group 3: Product Offerings - "Wah Xiaozong" has introduced its first product, a sugar-free Oolong tea priced at 4 yuan, which differentiates itself from traditional Wahaha packaging [6]. - The product line for "Wah Xiaozhi" includes a variety of items such as AD calcium milk, mineral water, and coconut water, with claims that their formulations are identical to Wahaha's but offered at lower prices [10][14].