Exclusive: Wahaha Halts Production Amid Control Reshuffle
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Nearly all of Wahaha’s plants have halted production, except those producing its red-labeled bottled water. Photo: VCG
Hangzhou Wahaha Group Co. Ltd.’s main production and sales operator has ordered several of its factories to suspend production for a week, multiple sources told Caixin, as the late founder’s family finalizes a complex deal to consolidate control of the beverage giant.
Hongsheng Group Co. Ltd. notified the factories on Thursday to halt assembly lines, with one source expecting work to resume after April 2. “Besides the factories that produce Wahaha’s red-labeled bottled water, almost all other plants have halted production,” another source said.
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- Wahaha temporarily halted most factory production as the late founder’s family negotiates control and settles inheritance disputes after Zong Qinghou’s death in February 2024.
- Zong Fuli is acquiring a 46% state-owned stake for over 2 billion yuan ($289 million), with Du Jianying contributing 300 million yuan, and government approvals are in process.
- Inheritance battles continue abroad, with asset preservation ordered by a Hong Kong court on a $2.1 billion trust for Zong's three other children.
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Who’s Who
- Hangzhou Wahaha Group Co. Ltd.
- Hangzhou Wahaha Group Co. Ltd. is a Chinese beverage giant. Following the founder's death in February 2024, the company has faced a complex power struggle involving consolidating control and settling a multibillion-dollar inheritance dispute. Production at most factories was temporarily suspended. The founder's daughter, Zong Fuli, is working to acquire a state-owned stake and resolve conflicts with her half-siblings, who are now expected to become involved in the company's affairs.
- Hongsheng Group Co. Ltd.
- Hongsheng Group Co. Ltd. is the main production and sales operator for Hangzhou Wahaha Group Co. Ltd. and controls Wahaha's production, sales, and operations. The company recently ordered several factories to suspend production, reportedly to address excess inventory, though other theories suggest it relates to changes in Wahaha's shareholding structure.
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What Happened When
- 2004：
- Zong Fuli returns from her studies in the U.S. and begins to be groomed as successor.
- 2008：
- Du Jianying officially leaves Wahaha.
- February 2024：
- Wahaha founder Zong Qinghou dies.
- February 2024：
- Zong Qinghou entrusts Zong Fuli to hold assets and create a $2.1 billion trust for his three other children.
- By 2025：
- The family’s secrets are revealed during an inheritance case in Hong Kong.
- September 2025：
- The Hong Kong High Court dismisses Zong Fuli’s appeal and upholds an asset preservation order on the trust funds.
- March 2026：
- Zong Fuli reaches a compromise with the state shareholder to pay over 2 billion yuan for the state-owned equity.
- March 26, 2026：
- Hongsheng Group notifies Wahaha factories to halt assembly lines.
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