Core Viewpoint - The control of Wahaha by Zong Fuli remains unstable, facing a significant challenge due to a sudden inheritance dispute involving 35 billion RMB, which could shake the financial foundation and family control of the company [3][5][6]. Group 1: Inheritance Dispute - An inheritance dispute has erupted, with three individuals claiming to be the illegitimate children of Zong Qinghou, initiating lawsuits in both Hong Kong and Hangzhou [4][5]. - The plaintiffs are seeking to reclaim $2.1 billion in offshore trust assets and to divide Zong Qinghou's 29.4% stake in Wahaha Group, with the total disputed amount reaching 35 billion RMB [5][6]. - If the plaintiffs succeed, the ownership structure of Wahaha could shift from a balance of state capital, employee shareholding, and Zong Fuli to a more complex arrangement involving multiple heirs, potentially leading to governance turmoil [6][10]. Group 2: Zong Fuli's Challenges - Zong Fuli has faced multiple crises since taking over Wahaha, including factory shutdowns and disputes over shareholding, indicating a strategic shift towards the Hongsheng system [9][12]. - The current shareholding structure consists of 46% state-owned shares, 29.4% held by the Zong family, and 24.6% by employee shareholding, which was maintained under Zong Qinghou's leadership [10][16]. - Zong Fuli's management style contrasts with her father's, focusing on institutional reforms that have led to dissatisfaction among long-time employees, complicating her leadership transition [22][24]. Group 3: The Role of Hongsheng Group - Zong Fuli's control over Wahaha is bolstered by her leadership of Hongsheng Beverage Group, which has become a key player in Wahaha's production and distribution [32][35]. - Hongsheng Group operates independently from Wahaha, allowing Zong Fuli to maintain significant influence over production and profit channels, despite the ongoing disputes [33][34]. - Recent actions to replace Wahaha's core departments with personnel from Hongsheng indicate a strategic pivot towards consolidating power within the Hongsheng framework [38][42]. Group 4: Brand Control and Future Implications - Despite Zong Fuli's control over production, the Wahaha brand remains under the group's ownership, which could limit her operational flexibility if disputes escalate [44][45]. - Attempts to transfer Wahaha trademarks to her controlled entities have been halted by state capital, reflecting a lack of trust in her management of complex interests [48][54]. - The ongoing inheritance dispute and control crisis represent the most significant challenge Zong Fuli has faced since taking the helm, with implications for both her future and the brand's trajectory [56][57].

Core Viewpoint - The inheritance dispute involving 35 billion yuan threatens the financial foundation and family control of Wahaha Group, marking a significant challenge for its current leader, Zong Fuli [1][2][6]. Group 1: Inheritance Dispute - Three claimants, identified as non-marital children of the founder Zong Qinghou, have initiated lawsuits in Hong Kong and Hangzhou, seeking to reclaim $2.1 billion in offshore trust assets and a share of Zong Qinghou's 29.4% stake in Wahaha Group, totaling 35 billion yuan [1][2]. - The outcome of this dispute could lead to a restructuring of Wahaha's ownership, potentially destabilizing Zong Fuli's control over the company [2][12]. - The current ownership structure consists of 46% state-owned shares, 29.4% held by the Zong family, and 24.6% by employee stock ownership, creating a delicate balance that may be disrupted if the claimants succeed [5][7]. Group 2: Zong Fuli's Leadership Challenges - Zong Fuli has faced multiple crises since taking over Wahaha, including factory shutdowns and disputes over production contracts, which have raised questions about her leadership capabilities [3][6]. - Her management style contrasts sharply with that of her father, focusing on institutional reforms and rapid changes that have alienated some long-standing employees [11][12]. - The complexity of the "external Wahaha empire," which controls over half of Wahaha's production capacity, poses additional challenges for Zong Fuli, as it relies heavily on her father's influence [12][20]. Group 3: Strategic Shifts and Brand Control - Zong Fuli's attempts to transfer 387 Wahaha trademarks to her own company, Hongsheng Group, were halted by state-owned stakeholders, indicating a lack of trust and complicating her strategic shift towards the Hongsheng system [5][19][22]. - The potential loss of trademark control could severely undermine Zong Fuli's position, as Wahaha Group retains the ability to revoke brand licenses, which are crucial for her operational strategy [18][22]. - The ongoing trademark and ownership disputes highlight the historical complexities of Wahaha's brand management, rooted in past agreements with foreign partners [20][22].