15
0Erinome: Hello dear friends! Welcome back to our podcast. Today, let’s chat about some big news in China’s beverage world. You know, Wahaha? That famous drink brand many of us grew up with. Enceladus, have you heard the recent news about it?
Enceladus: Oh, Wahaha! I remember their milk drinks from when I was a kid. What happened? Is everything okay with the company?
Erinome: Hmm, there’s a big change. Zong Fuli, the daughter of Wahaha’s founder Zong Qinghou, has resigned from her positions at Wahaha Group.
Enceladus: Resigned? Like, left her job? What positions did she have?
Erinome: She was the chairperson, legal representative, and director of Wahaha. And it’s official—she resigned on September 12th, and the company confirmed it in October.
Enceladus: Wow, that’s sudden! She just took over after her dad passed away last year, right? So she only stayed in those roles for a little over a year?
Erinome: Exactly! Her dad Zong Qinghou died last year, and she became chairperson in August 2024. Now, just a year later, she’s stepping down. Sad, isn’t it?
Enceladus: Oh no, that must have been tough. Why did she resign? Any specific reason?
Erinome: The main reason is about the “Wahaha” trademark. You know, the brand name. She couldn’t use it easily because of the company’s share structure.
Enceladus: Share structure? What does that mean?
Erinome: Let me explain simply. Wahaha’s shares are split three ways now: 46% owned by state-owned assets, 29.4% by Zong Fuli herself, and 24.6% by the company’s trade union. To use the “Wahaha” trademark, all three groups need to agree. She can’t decide alone.
Enceladus: Oh, so even if she was the chairperson, she couldn’t use the brand freely? That sounds really tricky.
Erinome: Exactly! The news says it’s a “trademark compliance issue.” Since the share structure needs all shareholders to agree, she couldn’t use “Wahaha” without their okay. So she chose to leave and focus on her own new brand.
Enceladus: Her own brand? What’s it called?
Erinome: It’s called “Wa Xiao Zong.” Sounds a bit like “Little Wahaha,” right? Cute name. And this brand is owned by Hongsheng Group, which Zong Fuli actually controls.
Enceladus: Hongsheng Group? I haven’t heard of that. Is it a new company?
Erinome: No, it’s not new! It started in 2003 as a contract manufacturer for Wahaha. Now it’s a big company covering the whole drink production chain. And Zong Fuli is the key person there—she’s the director, and Hongsheng is fully owned by another company she controls.
Enceladus: Oh, so she’s been building her own team for a long time? That makes sense. So leaving Wahaha isn’t starting from zero.
Erinome: Right! And there were signs before this. Since September, many Wahaha companies have changed their names to “Hongsheng” ones. Like, some local Wahaha factories are now called Hongsheng companies.
Enceladus: Oh! So that was her plan—preparing for Wa Xiao Zong?
Erinome: Probably! The news says those name changes were “铺路” (pū lù)—like paving the way for the new brand. She also did things like digital upgrades and team reforms before; now those can help Wa Xiao Zong grow.
Enceladus: But wait, why did her time at Wahaha end so fast? She took over only last year, right?
Erinome: Yeah, it was a tough year. She faced a lot of problems. First, after her dad died, there was a big fight over his遗产—like, 1.8 billion US dollars! Some people said they’re Zong Qinghou’s other children and wanted part of the shares and trust.
Enceladus: Oh no, family problems? That must have made things harder for her at work.
Erinome: Totally! And there were internal fights too. Last July, some shareholders questioned her management, and there were rumors she might resign then. But the company said she stayed. Then, she tried to replace old executives with new ones, which made some people unhappy.
Enceladus: Wow, so many struggles. No wonder she decided to leave. But does she still have any connection with Wahaha now?
Erinome: She still owns 29.4% of Wahaha’s shares—so she’s the second biggest shareholder. But she’s not in management anymore. Her focus is all on Wa Xiao Zong now.
Enceladus: So from “inheriting an empire” to “building a new brand”—that’s a big change for her, right?
Erinome: Exactly! The news says this choice might even change the competition in China’s beverage industry. Everyone is watching: Can Wa Xiao Zong take over Wahaha’s old sales channels? Can it be successful without the “Wahaha” name?
Enceladus: That’s a good question. Wahaha has such a long history and many loyal customers. Wa Xiao Zong is new—will people buy it?
Erinome: Maybe! She has the Hongsheng Group’s factories and her past reforms. But it won’t be easy. And what about Wahaha? Now, with state-owned assets holding 46%, and no Zong family in charge, what will happen to the brand we all know?
Enceladus: It’s like the end of an era, huh? The “family business” part of Wahaha might be over.
