Beverage Giant Wahaha to Abandon Eponymous Brand Name

Hangzhou Wahaha Group Co. Ltd., a major player in China’s beverage industry, is preparing to abandon its iconic “Wahaha” brand due to escalating internal disputes among shareholders and members of the founder’s family. This strategic shift comes as the company faces ongoing legal and operational risks linked to its complicated ownership structure. Specifically, continued use of the “Wahaha” trademark requires unanimous consent from all shareholders, a condition that has become increasingly difficult to fulfill amid the current discord [para. 1][para. 2].

Starting with the 2026 sales year, Wahaha Group will replace its historic label with a new brand name, “Wa Xiao Zong.” This change was communicated in a notice attributed to Hangzhou Wahaha Honghui Food & Beverages Co. Ltd., a subsidiary of Hongsheng Group Co. Ltd., led by Zong Fuli—the chairwoman of Wahaha Group and daughter of its late founder, Zong Qinghou. While Wahaha Group declined to comment officially, a party involved in a rights dispute confirmed the authenticity of the notice [para. 3][para. 4].

Since taking over leadership, Zong Fuli has implemented sweeping corporate reforms including transferring staff from Wahaha to Hongsheng. In 2024, Hongsheng filed for the “Wa Xiao Zong” trademark across various sectors such as food, beverages, apparel, pharmaceuticals, and furniture, reflecting extensive rebranding ambitions. Zong Fuli reportedly set a sales target of 30 billion yuan (about $4.2 billion) for the new brand—nearly 80% of Wahaha Group’s current annual sales [para. 5][para. 6].

This rebranding effort comes at a critical moment for Wahaha. The firm—once admired for its nationalist image and strong family branding—has been mired in inheritance struggles and legal disputes since Zong Qinghou’s death. The resulting leadership uncertainty and shareholder infighting have damaged Wahaha’s reputation and hampered Zong Fuli’s efforts to revitalize the business, which had faced sluggish sales before her tenure began [para. 7].

Ownership of the “Wahaha” trademark is fractured: Zong Fuli personally holds 29.4%, a staff shareholding union controlled by her possesses 24.6%, and a government investment vehicle under a Hangzhou district owns 46%. Lawsuits from employees about stock rights and disputes over governance further complicate the situation. The largest shareholder—controlled by the local government—has occasionally intervened but refrained from commenting publicly on recent controversies [para. 8][para. 17].

Trademark turmoil extended to affiliated entities, such as Shanghai Wahaha Yinyongshui Co. Ltd., operated by Zong Wei, a relative of the founder. In July 2024, Wahaha halted the Shanghai affiliate’s production over an expired trademark license, despite the unit’s strong financial performance: 127 million yuan in revenue and 26.5 million yuan in net profit for 2024, marking a year-over-year rise of 149% and 211%, respectively. Attempts by Zong Wei to communicate with Zong Fuli failed, and local government-backed shareholders denied any role in the plant’s closure [para. 9][para. 10][para. 11][para. 12]. Following an investigation, the government shareholder opposed the shutdown, but Wahaha suggested bankruptcy liquidation for the affiliate—a proposal that was rejected [para. 13].

The root issue stems from contractual disputes over trademark licensing. Although Wahaha Group offered an affiliation certificate, it withheld renewing the license needed for continued operations in Shanghai. Expert opinion notes that affiliation alone does not confer perpetual trademark use rights; such rights require active contracts. In response to its exclusion, the Shanghai affiliate launched its own brand, “Hu Xiao Wa” [para. 18][para. 19][para. 20].

Overall, Wahaha Group’s internal strife has forced a major rebranding and prompted significant upheaval within China’s beverage market [para. 1-20].