Core Viewpoint - The article discusses the recent strategic changes at Wahaha, focusing on the shift in e-commerce operations and the internal power dynamics between the company's leadership, particularly between Zong Fuli and Du Jianying [4][6][45]. Group 1: E-commerce Strategy Shift - Wahaha's official flagship store on Tmall has been renamed to "Tongyuan Kang Food Specialty Store," indicating a significant change in online channel management [7][11]. - The new flagship store is now directly operated by a company controlled by Zong Fuli, ensuring that products are officially authorized and produced by the group [28][29]. - This change reflects a broader strategy to reclaim control over e-commerce channels and enhance brand management, moving away from reliance on third-party distributors [30][40]. Group 2: Internal Restructuring - Zong Fuli has initiated a series of reforms, including the termination of partnerships with small distributors and the closure of 18 factories, many of which were linked to Du Jianying [33][35]. - The closure of Zhejiang Hongzhen Intelligent Chip Co., a company previously associated with the founder, signifies a decisive move to eliminate Du's influence [37]. - Zong Fuli's actions are aimed at consolidating control over production and distribution, thereby streamlining operations and enhancing efficiency [41][44]. Group 3: Market Position and Challenges - Wahaha's e-commerce sales have reportedly dropped by 50% in Q2 2025, highlighting the urgency for Zong Fuli to address declining market performance [48][50]. - The company is at a critical juncture, needing to adapt to changing consumer preferences while maintaining its core product lines [56][58]. - The ongoing internal conflict and restructuring efforts are seen as necessary steps to reposition Wahaha for future competitiveness in the beverage market [66][68].

Core Viewpoint - The article discusses the ongoing power struggle within Wahaha, focusing on the actions of Zong Fuli, who is taking significant steps to assert control over the company amidst a family inheritance dispute [3][5]. Group 1: Changes in Brand and Operations - Zong Fuli has rebranded the former Wahaha flagship store on Tmall to "Tongyuan Kang Food Specialty Store," indicating a strategic move to distance the brand from previous associations and control [8][14]. - The rebranding has raised questions among consumers about the authenticity and management of the flagship store, highlighting a potential shift in consumer trust [22][24]. - The new flagship store has a significantly smaller follower base compared to the previous one, suggesting a risky move in abandoning an established customer base [15][16]. Group 2: Major Investments and Strategic Moves - Zong Fuli has made a bold investment of 1 billion yuan in a new factory in Xi'an, aimed at consolidating Wahaha's market resources in Northwest China [28][30]. - The new facility will include multiple production lines for various beverage categories, reflecting a strategic shift towards a more diversified product offering [28][30]. - The location in Xi'an is strategically advantageous for logistics, allowing for efficient distribution across several provinces [31]. Group 3: Supply Chain and Operational Reforms - Wahaha has shut down 18 production lines in various cities, which were previously associated with a key rival in the inheritance dispute, effectively cutting off their revenue stream [37][38]. - The company has shifted production to outsourcing partners, with a fee structure that benefits Zong Fuli's controlled entities, indicating a significant restructuring of the supply chain [38][41]. - Wahaha is also revamping its distribution network by eliminating smaller distributors and consolidating operations under larger ones to streamline processes and reduce conflicts [41]. Group 4: Vision for the Future - Zong Fuli's actions are not merely about defending her position but are aimed at modernizing Wahaha and establishing a new operational framework [44][46]. - The changes reflect a broader strategy to adapt to the e-commerce landscape and improve operational efficiency, moving away from traditional business models [46][48]. - The success of these transformations will depend on market reception and the ability to navigate internal and external challenges [49].

Core Viewpoint - The article discusses the strategic moves by Zong Fuli, the daughter of the founder of Wahaha, to regain control over the brand and its operations, indicating a significant shift in the company's management and structure amid ongoing family disputes over ownership and control [1][26]. Group 1: Brand and E-commerce Changes - The official Wahaha flagship store on Taobao has been replaced by a new store named "Tongyuan Kang Food Specialty Store," indicating a termination of the partnership with the previous operator [1][4]. - The new Wahaha flagship store is now operated by Hangzhou Hengyi E-commerce, a subsidiary of Hongsheng Beverage Group, which is controlled by Zong Fuli [8][9]. - Zong Fuli's actions are aimed at severing ties with Du Jianying, the previous operator, and consolidating brand control [7][10]. Group 2: Corporate Restructuring - Since June, multiple companies under the "Wahaha Changsheng" name have been renamed to "Hongsheng," reflecting a broader restructuring strategy [11]. - The renaming is seen as a move to distance the brand from Du Jianying and her family, who have significant stakes in various Wahaha subsidiaries [13][14]. - Wahaha has shut down 18 production lines across several cities, which were closely linked to Du Jianying's interests, indicating a strategy to reduce her influence [15][17]. Group 3: Investment and Production Strategy - Wahaha plans to invest 1 billion yuan to establish a new beverage production base in Xi'an, aiming to fill the capacity gap left by the closed factories [17]. - The new production base will include multiple high-speed production lines covering a range of beverage categories, reinforcing Zong Fuli's control over supply chains [17][26]. Group 4: Internal Reforms and Market Strategy - Zong Fuli is implementing reforms within Wahaha, including the elimination of underperforming distributors and a focus on core products, reducing the SKU count to around 30 [28][30]. - New product lines, such as sugar-free tea and double pomelo juice, are being introduced to cater to changing consumer preferences and attract younger demographics [31][34]. - The company is also focusing on a strategic plan for 2025, emphasizing breakthroughs in water and tea categories and multi-channel network development [33][34]. Group 5: Challenges and Future Outlook - Zong Fuli faces significant challenges, including internal resistance to reforms, competition from rivals like Nongfu Spring, and potential legal disputes over ownership and control [35][37]. - The ongoing family disputes and the need to stabilize internal operations while enhancing brand competitiveness are critical issues that Zong Fuli must address moving forward [37][38].

Group 1 - The core point of the article revolves around the power struggle within Wahaha, particularly focusing on Zong Fuli's strategic moves amidst the inheritance dispute with her half-siblings [1][20] - Zong Fuli has rebranded the former Wahaha flagship store on Tmall to "Tongyuan Kang Food Specialty Store," indicating a significant shift in the company's branding strategy [2][5] - The rebranding is part of Zong Fuli's efforts to eliminate the influence of Du Jianying, a key figure in the company, and to assert her control over Wahaha [11][14] Group 2 - Zong Fuli has made a substantial investment of 1 billion yuan in a new factory in Xi'an, which aims to consolidate Wahaha's market resources in the northwest region [21][22] - The new factory will include multiple production lines for various beverage categories, reflecting a strategic shift towards a more diversified product offering [21][22] - Recent changes in the company's operational structure include the closure of 18 factories and a shift to outsourcing production, which has raised concerns about the impact on profit distribution among stakeholders [27][29] Group 3 - Zong Fuli's actions, including the closure of old factories and the overhaul of the distributor system, signal a move towards modernizing Wahaha and breaking away from traditional operational models [30][33] - The company is focusing on enhancing its online presence and addressing consumer trust issues following the shift from direct management to a distributor model [31][33] - Zong Fuli's strategic decisions are aimed at transforming Wahaha into a modern enterprise, indicating her desire to establish her own legacy separate from her father's influence [30][33]

Core Viewpoint - The article discusses the strategic shift of Wahaha Group, particularly under the leadership of Zong Fuli, following the closure of 18 factories, including those in Shaanxi, and the establishment of a new beverage production base in Xi'an, indicating a significant restructuring and market expansion effort in the northwest region of China [1][7]. Group 1: Company Restructuring - Zong Fuli has transitioned from a major shareholder to the actual controller of Xi'an Hengfeng Beverage Co., Ltd., which is a key supplier for Wahaha [1][8]. - The new Xi'an beverage production base project has been approved, with a total investment of 1 billion yuan, covering a construction area of approximately 80,878.89 square meters [3][5]. - The project will include production lines for purified water, tea beverages, coffee, fruit juices, and dairy products, indicating a comprehensive product range [5][10]. Group 2: Market Strategy - The establishment of the new production base aligns with Zong Fuli's broader strategy to consolidate control over the northwest market, following the closure of several factories [7][10]. - The management team of the new base consists of key figures from the "Hongsheng System," suggesting a strategic integration of resources and management [10]. - The restructuring includes a shift in distribution partnerships, with adjustments in the sales network to favor the "Hongsheng System," indicating a move towards vertical integration in the northwest market [9][10].

Core Viewpoint - Wahaha Group's Xi'an Hengfeng Beverage Co., Ltd. has been approved to build a new beverage base project in Xi'an with a total investment of 1 billion yuan, marking a strategic shift towards optimizing production capacity and enhancing supply chain networks [1][3]. Group 1: Project Details - The new project will cover over 80,000 square meters and include five production lines, with space reserved for two additional lines, focusing on a full range of products including purified water, tea, coffee, juice, and dairy beverages [1]. - This is Wahaha's first investment project in Xi'an, led by Hongsheng Beverage Group, with the site located in the Jingwei Industrial Park of Xi'an Economic Development Zone, an area already home to major food and beverage companies like Pepsi and Coca-Cola [1][3]. Group 2: Strategic Implications - The location in Xi'an is strategically positioned to serve the Northwest market, reflecting Wahaha's intent to enhance its supply chain network [1]. - The closure of 18 production lines this year indicates a necessary restructuring process, with the new base representing a significant step towards optimizing production capacity and upgrading the company's industrial structure [1][3]. Group 3: Company Background - Xi'an Hengfeng Beverage Co., Ltd. was established in December 2017 and has a registered capital of 45 million USD, with Hongsheng Beverage Group holding a 90% stake [3][4]. - Despite a change in the legal representative, the actual control remains with Zong Fuli, who continues to guide the company's strategic direction [5]. Group 4: Financial Performance - In 2024, Wahaha reported a 53% year-on-year increase in beverage sales net income, achieving the highest growth rate since its establishment, indicating a successful recovery to performance levels seen a decade ago [6].

Group 1 - The core point of the article is the approval of the new beverage production base project by Xi'an Hengfeng Beverage Co., Ltd., which is a significant investment in the beverage industry in Xi'an, China [1] - The project includes the construction of one high-speed water production line, two milk production lines, and one sterile production line, along with supporting facilities for bottle caps, bottle preforms, and logistics [1] - The total investment for the project is 1 billion yuan, indicating a strong commitment to expanding production capacity in the beverage sector [1] Group 2 - Xi'an Hengfeng Beverage Co., Ltd. was established in 2017 and is a member of Hangzhou Wahaha Very Cola Beverage Co., Ltd., indicating its affiliation with a well-known brand in the beverage industry [1] - The company primarily engages in wholesale activities and has a registered capital of 45 million USD, reflecting its financial foundation for future growth [1]

Core Viewpoint - Wahaha is undergoing a significant restructuring by eliminating distributors with annual sales below 3 million yuan, leading to disputes over payments and a reshuffling of the distribution network [1][4][5]. Group 1: Distributor Strategy - Wahaha is cutting off distributors with annual sales below 3 million yuan, which has caused some distributors to end their partnerships and others to be merged into larger distributors, resulting in payment disputes [1][4]. - The sales targets for distributors have increased significantly, with some reporting a 50% increase in sales targets for 2025 compared to 2024, leading to heightened pressure and anxiety among distributors [3][6]. - The restructuring aims to consolidate smaller distributors into larger ones to address issues like debt and product distribution, but it also raises concerns about the management of larger distributors [6][7]. Group 2: Market Performance - Despite the restructuring, Wahaha's beverage sales net income increased by 53% year-on-year in 2024, returning to market levels seen over a decade ago [7]. - However, the increase in sales is attributed to a surge in consumer sentiment following the passing of the founder, which may not be sustainable as consumer interest wanes [8][9]. - The company faces challenges with brand aging and a lack of innovation in product development, which could impact future sales if not addressed [8][9]. Group 3: Financial and Operational Issues - Distributors have reported issues with inventory management, with some facing stockpiles exceeding 3 million yuan due to increased sales targets and market competition [3][6]. - There are ongoing disputes regarding unpaid sales fees and the handling of equipment like iceboxes that were purchased for promotional purposes but became redundant after the cancellation of distributor qualifications [5][6]. - The management of the consolidation process has been criticized for its lack of clarity and organization, leading to further complications for affected distributors [5][6].

Core Viewpoint - The recent inheritance dispute surrounding Wahaha has raised concerns about its market performance and sales strategies under the leadership of Zong Fuli, who has implemented strict measures against underperforming distributors [2][10]. Distributor Management - Wahaha is eliminating distributors with annual sales below 3 million yuan, leading to sudden terminations and disputes over unpaid dues [3][4]. - Sales targets for distributors have increased significantly, with some facing a 50% rise in annual sales goals starting from 2025 [4][5]. - The management of distributors has become more stringent, with specific sales targets assigned to each product category, and digital management systems implemented for better oversight [5][6]. Market Performance - Despite the challenges, Wahaha's beverage sales net income grew by 53% year-on-year in 2024, returning to market levels seen over a decade ago [9]. - However, there are concerns about the sustainability of this growth, as it may be linked to a temporary surge in consumer sentiment following the passing of the founder, rather than long-term brand strength [10][11]. Industry Dynamics - The consolidation of smaller distributors into larger ones is a strategy to streamline operations and manage debts more effectively, but it raises concerns about the control over larger distributors [6][8]. - The fast-moving consumer goods (FMCG) industry often employs such consolidation strategies to enhance market reach and reduce operational costs [8]. Future Outlook - The ongoing inheritance dispute may impact consumer trust and brand perception, particularly for products that rely on emotional connections [11]. - Wahaha is investing in new production facilities to diversify its product offerings, indicating a potential shift towards innovation and modernization [11].

Core Viewpoint - The article discusses the recent challenges faced by Wahaha Group under the leadership of its chairperson, Zong Fuli, particularly focusing on the impact of a heritage dispute and the company's aggressive strategy to streamline its distribution network by eliminating underperforming distributors [2][3][5]. Group 1: Business Operations and Distributor Management - Under Zong Fuli's leadership, Wahaha has adopted a stringent approach, cutting off distributors with annual sales below 3 million yuan, leading to sudden terminations and unresolved payments for some distributors [3][6][7]. - Distributors report increased sales targets, with some facing a 50% increase in their annual sales goals starting from 2025, and the threat of losing their distributor status if targets are not met [6][7]. - The company is undergoing a significant restructuring of its distribution network, with larger distributors taking over smaller ones to address issues like debt and product distribution [9][10]. Group 2: Market Performance and Sales Challenges - Despite being in a peak sales season, Wahaha's product presence in retail stores is reportedly low, facing stiff competition from brands like Nongfu Spring [5][6]. - Some distributors have experienced stockpiling issues, with inventory levels exceeding normal limits due to increased sales targets and market conditions [7][8]. - The company's sales performance has shown a significant increase, with a 53% year-on-year growth in beverage sales revenue in 2024, returning to market levels seen over a decade ago [13]. Group 3: Brand Perception and Future Outlook - The heritage dispute surrounding the company has raised concerns about consumer trust, particularly affecting products that rely on emotional connections, such as AD Calcium Milk and bottled water [15]. - Experts suggest that the recent sales surge may be more related to emotional consumer spending following the founder's passing rather than the effectiveness of the distributor restructuring [14][15]. - To sustain growth, Wahaha must focus on brand rejuvenation, product innovation, and modern marketing strategies to regain consumer trust and adapt to changing market demands [14][15].