Core Points - The recent management changes at Hangzhou Wahaha Group have seen Zong Fuli resign from her roles as legal representative, chairman, and general manager, with Xu Simin taking over [1][3] - Zong Fuli remains the second-largest shareholder with a 29.4% stake, indicating a complex relationship with the company as she exits management [3][4] - The resignation is linked to ongoing disputes over the "Wahaha" trademark, a matter that dates back to the late 1990s involving a joint venture with Danone [3][4] Management Changes - Xu Simin, born in 1994 and a law graduate from Zhejiang University, has been appointed as the new general manager of Wahaha Group [5] - Xu has a background in legal affairs, having previously worked on significant trademark disputes between Wahaha and Danone [5][7] Trademark Disputes - The trademark issue stems from a 1996 joint venture with Danone, which sought ownership of the "Wahaha" trademark but was denied due to regulatory violations [3][4] - A 1999 agreement allowed Wahaha Group to retain trademark ownership while granting usage rights to the joint venture [3][4] Shareholding Structure - Wahaha Group's ownership is divided among three parties: Hangzhou Shangcheng Cultural Tourism Investment Holding Group (46%), Zong Fuli (29.4%), and an employee shareholding association (24.6%) [4][7] - The employee shareholding association is primarily represented by Zong Fuli, following a significant buyback of shares in 2018 [4][7] Strategic Shifts - In response to the trademark challenges, Zong Fuli has initiated a new brand, "Wah Xiaozong," set to launch in the 2026 sales year, indicating a strategic pivot to maintain business operations [7][8] - The success of "Wah Xiaozong" will be crucial for Zong Fuli's efforts to establish an independent business identity separate from her father's legacy [7][8]

Core Points - The resignation of Zong Fuli from Wahaha Group is seen as a significant development in the ongoing power struggle within the company, with her uncle Zong Ze commenting that she has mishandled the brand [1][3] - Zong Fuli's resignation is interpreted as a strategic retreat rather than a tactical maneuver, as she has been consolidating power within the company over the past year [1][4] - The impact of her departure is expected to be profound, leading to a power vacuum and potential disruption of the reforms she initiated [4][5] Company Overview - Zong Fuli's resignation comes as she shifts her focus to her own brand "Wah Xiaozong," having already begun transferring resources from Wahaha to her wholly-owned Hongsheng Group [2][3] - Wahaha experienced a 36.7% revenue increase in 2024 due to a nostalgia wave following the death of its founder, but is now facing management instability [3][4] - The current ownership structure remains unchanged, with Zong Fuli holding 29.4% of the shares, allowing her to still influence company operations [5][6] Management Changes - Zong Fuli's departure has created a power vacuum, and the reforms she implemented may not continue without her leadership [4][5] - Key executives who supported her, such as Ye Yaqiong and Hong Chanchan, remain in their positions, which may influence the transition [4][5] - The company will likely undergo prolonged personnel adjustments in the core management team following her resignation [5][7] Brand and Market Implications - The separation of Wahaha and Wah Xiaozong could lead to brand dilution and competition similar to past cases in the beverage industry [6][7] - The immediate priority for Wahaha is to appoint a new leader and clarify its asset and equity structure [7][9] - Zong Fuli's attempt to transfer 387 Wahaha trademarks to her new company was halted by the local government, indicating ongoing disputes over brand ownership [8][9] Future Prospects - Zong Fuli's new venture, "Wah Xiaozong," will depend on her existing supply chain and distribution channels, which she has partially retained from Wahaha [11][12] - Despite her experience, Zong Fuli faces challenges in establishing a successful new brand, as her previous attempts have not yielded positive results [16][21] - The competitive landscape for beverage brands in China remains fierce, and maintaining brand value will be crucial for both Wahaha and Wah Xiaozong [27][28]

Core Points - Zong Fuli has resigned from her positions at Wahaha Group, including legal representative, director, and chairman, effective September 12, 2024, following a series of controversies and management challenges after the death of founder Zong Qinghou [1][2][3] - Despite her resignation, Zong Fuli remains a significant shareholder in Wahaha Group and is focusing on her new brand "Wawa Xiaozong" [1][4] - The transition to "Wawa Xiaozong" comes amid legal complexities regarding the use of the Wahaha trademark, which requires unanimous consent from all shareholders for its usage [5][6] Company Background - Zong Fuli, born in 1982, has been a prominent figure in the beverage industry since 2004, leading Hongsheng Beverage Group to become one of China's top private enterprises [2][3] - She has held various leadership roles within Wahaha Group, including Vice Chairman and General Manager, and has been involved in significant reforms and expansions within the company [2][3] Brand Development - The new brand "Wawa Xiaozong" is seen as a response to the inability to use the Wahaha trademark, with the company planning to shift its branding strategy to mitigate legal risks [5][6] - Zong Fuli previously launched the KELLYONE brand, which has since faded from the market, raising questions about the viability of her new venture [7][8] Market Implications - The ongoing changes within Wahaha Group and Zong Fuli's departure may impact the company's market position and brand identity, as stakeholders assess the future of both Wahaha and "Wawa Xiaozong" [1][5][8] - The complexities surrounding trademark usage and shareholder agreements highlight potential challenges for the company's operational continuity and brand strategy [5][6]

Core Viewpoint - The article discusses the ongoing power struggle within Wahaha Group, focusing on Zong Fuli's attempts to assert control over the brand and the company amidst internal conflicts and external pressures [1][11]. Group 1: Zong Fuli's Leadership and Strategy - Zong Fuli initiated a significant power play by resigning last year, which ultimately led to her becoming the chairman of Wahaha and acquiring all shares held by her father, Zong Qinghou [2][5]. - Recently, Zong Fuli has proposed to replace the iconic "Wahaha" brand with a new brand called "Wawa Xiaozong," which she controls through Hongsheng Beverage [3][4]. - The Wahaha brand is valued at over 90 billion, and changing it could erase decades of brand equity built during Zong Qinghou's era [4][5]. Group 2: Internal Conflicts and Brand Control - Zong Fuli currently holds 29.4% of Wahaha Group, while the employee stockholding committee owns 24.6%, limiting her control over the brand [5][12]. - Attempts to transfer the Wahaha trademark to a company she controls were unsuccessful, prompting her to accelerate the rebranding process [5][6]. - Zong Fuli's strategy includes phasing out Wahaha-related enterprises and promoting new brands, indicating a significant shift in the company's direction [6][7]. Group 3: Market Challenges and Dealer Resistance - The introduction of "Wawa Xiaozong" faces skepticism from dealers, with reports indicating that 99% of Wahaha dealers are unwilling to sell the new brand [8][9]. - Despite a projected revenue increase to 700 billion in 2024, dealers are under pressure to meet higher sales targets without new hit products [9][10]. - The previous brand KELLYONE, also launched by Zong Fuli, failed to gain traction, raising concerns about the viability of new brands [10][11]. Group 4: Legal and Inheritance Issues - Zong Fuli is embroiled in a legal battle over inheritance rights, which complicates her control over Wahaha Group and its assets [12][13]. - The ongoing inheritance dispute with her siblings poses a significant threat to her leadership and the company's future direction [13][14]. - The brand change may be a strategic move to mitigate the impact of these legal challenges and assert her authority [13][14].

Core Viewpoint - The recent announcement regarding the brand change from "Wahaha" to "Wawaixiong" has raised concerns among distributors and stakeholders, highlighting the complexities of brand ownership and the implications of the current shareholding structure [1][3][12]. Group 1: Brand Change Announcement - A document titled "Notice on the Communication Work of Distributors for the 2026 Sales Year" indicates that starting from the 2026 sales year, the "Wahaha" brand will be replaced by the new brand "Wawaixiong" [1]. - The document was signed by several companies under the Hongsheng Group, which is controlled by the current chairman and general manager, Zong Fuli [1][3]. - The brand change is attributed to the requirement for unanimous consent from all shareholders of Wahaha Group for the use of the "Wahaha" trademark under the current shareholding structure [3][12]. Group 2: Trademark Applications - Hongsheng Beverage Group applied for 45 "Wawaixiong" trademarks across various international categories in May 2025 [2]. Group 3: Distributor Reactions - Distributors have expressed mixed reactions to the brand change, with some showing willingness to try the new brand while others are hesitant due to lack of market recognition [6][9]. - Many distributors have not received formal notifications regarding the brand change, leading to confusion and uncertainty about future sales strategies [7][9]. Group 4: Shareholding Structure and Legal Implications - The shareholding structure of Wahaha Group includes 46% held by Hangzhou Shangcheng Wen Shang Travel Investment Holding Group, 29.4% by Zong Fuli, and 24.6% by the employee shareholding committee [13]. - The employee shareholding committee's status is complicated due to ongoing litigation regarding the 2018 stock buyback, which has not been fully resolved [13][14]. Group 5: Historical Context and Brand Management - Hongsheng Beverage Group, established in 2003, was originally a contract manufacturer for Wahaha, and has since expanded its production capabilities significantly [14]. - Previous attempts by Zong Fuli to transfer "Wahaha" trademarks to her company were halted, indicating ongoing challenges in brand management and ownership [15][16]. - The history of brand management in the beverage industry, including the case of Jianlibao, serves as a cautionary tale for Wahaha regarding brand inheritance and market positioning [20][22].

Core Viewpoint - Wahaha is planning to change its brand name to "Wah Xiaozong" starting from the 2026 sales year to ensure compliance with brand usage, which has raised concerns internally about the potential risks associated with this decision, deemed critical for the company's survival [1][4][15]. Group 1: Brand Change Decision - The decision to change the brand name is attributed to unresolved historical issues that expose the company to legal risks, necessitating this strategic shift [7][5]. - The current ownership structure complicates the use of the "Wahaha" trademark, requiring unanimous consent from all shareholders for its use [9][8]. - Previous attempts by the company's leader, Zong Fuli, to transfer the trademark to a controlled entity failed due to the need for shareholder approval [10]. Group 2: Internal Restructuring - Since Zong Fuli's appointment, the company has undergone significant restructuring, including two major rounds of personnel changes within six months, affecting numerous mid-level and senior management positions [2][17]. - In April, the company issued eight dismissal notices affecting various regional managers across multiple areas, followed by further adjustments in July [19][18]. - Reports indicate that many long-term employees are facing salary reductions and job relocations, leading to increased turnover and dissatisfaction among staff [21][20]. Group 3: Market Performance and Future Outlook - The company's sales have reportedly declined compared to previous years, raising concerns about its market position and future growth prospects [21]. - Zong Fuli has expressed a desire to own the company rather than inherit it, indicating a potential shift in strategy, but the current challenges may hinder this ambition [21].

Core Viewpoint - Wahaha is planning to change its brand name to "Wah Xiaozong" starting from the 2026 sales year due to compliance issues related to the "Wahaha" trademark, which has raised concerns internally about the potential risks associated with this decision, described as a matter of "life and death" for the company [3][9][13]. Group 1: Brand Change and Compliance Issues - The decision to change the brand name is driven by the need to address historical compliance issues and legal risks associated with the "Wahaha" trademark, which is owned by a complex shareholding structure [7][9]. - The current shareholding structure requires unanimous consent from all shareholders for the use of the "Wahaha" trademark, complicating any attempts to transfer the trademark to a different entity [9][10]. - The company has been preparing for this brand change since February 2023, with multiple trademark applications for "Wah Xiaozong" and related names filed under a company controlled by the founder's daughter, Zong Fuli [10][11]. Group 2: Internal Restructuring and Management Changes - Since Zong Fuli took over, Wahaha has undergone significant internal restructuring, including two major rounds of personnel changes within six months, affecting many mid-level managers [4][15]. - In April 2023, the company issued eight dismissal notices affecting various regional managers and departments, followed by further adjustments in July that impacted sales managers across twelve regions [15][16]. - Reports indicate that many long-term employees have faced salary reductions and job relocations, leading to increased turnover and dissatisfaction among staff [17]. Group 3: Market Performance and Future Outlook - Wahaha's sales have reportedly declined compared to previous years, raising concerns about the company's future performance amid ongoing internal challenges [17]. - Zong Fuli has expressed a desire to own and potentially acquire Wahaha, indicating a vision for revitalizing the brand, but the current situation presents significant hurdles [17].

Core Viewpoint - Wahaha is planning to change its brand name to "Wah Xiaozong" starting from the 2026 sales year to ensure compliance with brand usage, which has raised concerns internally about the decision being a "dangerous gamble" that is critical to the company's survival [2][4][12]. Brand Change Decision - The decision to change the brand name is attributed to unresolved historical issues that expose the company to legal risks, necessitating this change [6][12]. - The current ownership structure complicates the use of the "Wahaha" trademark, requiring unanimous consent from all shareholders for its use [6][12]. Internal Restructuring - Since the appointment of Zong Fuli, Wahaha has undergone significant internal reforms, including two major personnel adjustments within six months [12][14]. - In April, the company issued eight dismissal notices affecting many mid-level managers across various regions [12][14]. - In July, further adjustments were made to the sales market, resulting in the dismissal or replacement of regional managers in twelve areas [14]. Employee Impact - There have been reports of salary reductions and job relocations for many long-term employees, leading to dissatisfaction and increased turnover [16]. - Employees have experienced changes in contracts that result in lower compensation and reduced severance pay [16]. Market Performance - Wahaha's sales have reportedly declined compared to previous years, indicating potential challenges in maintaining market position amid internal and external pressures [16].

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].

Core Viewpoint - Wahaha is planning to transition to a new brand "Wah Xiaozong" starting from the 2026 sales year due to compliance issues related to the historical legacy of the brand following the founder's passing [1][8]. Brand Transition - An internal notice indicates that Wahaha will replace its brand with "Wah Xiaozong" to address compliance concerns and historical issues [1][2]. - The trademark for "Wah Xiaozong" was applied for earlier this year, alongside other names like "Wah Xiaohai" [8]. - The first product under the new brand, a sugar-free tea named "Ningxiang Oolong," was launched in May but received lukewarm market reception due to brand recognition issues [10]. Corporate Restructuring - Several Wahaha subsidiaries have undergone name changes to "Hongsheng" or "Hengfeng," indicating a shift towards a new corporate identity [4][12]. - The ownership structure of these companies has also changed, with significant shifts in shareholder control towards entities associated with Zong Fuli [6][19]. - The restructuring appears to be a strategic move by Zong Fuli to consolidate control and distance the company from past associations, particularly with Du Jianying and his family [25]. Legal and Financial Context - The changes come in the wake of ongoing legal disputes regarding inheritance and control of the company, particularly following a court ruling on asset preservation involving Zong Fuli and her siblings [6][22]. - The company has emphasized the need for compliance and risk management in its operations, indicating that the brand transition is part of a broader strategy to mitigate legal risks [8][25]. E-commerce Strategy - Wahaha has shifted its e-commerce operations, reclaiming control from previously associated entities, which is seen as a move to strengthen its online presence and brand authority [20][21]. - The new flagship store on e-commerce platforms is now fully controlled by Zong Fuli's associated companies, enhancing direct consumer engagement [21][26].