Billion-Dollar Family Feud Threatens Wahaha's Future
A lawsuit against Zong Fuli, the chairwoman of Wahaha Group, has sent shockwaves through the Chinese beverage industry, as the company's sales have reportedly plummeted in the aftermath. The lawsuit, filed by three individuals claiming to be Zong Fuli's half-siblings, seeks approximately $1.8 billion in frozen assets and around 15 billion yuan in trust interests. The dispute has raised concerns about the company's control and future succession arrangements, with distributors and consumers alike closely watching the developments.
18 July 2025
At the center of the controversy is Zong Fuli, the daughter of Wahaha's late founder, Zong Qinghou. The lawsuit has sparked a heated public debate, with some defending Zong Fuli as a strong and independent leader, while others have criticized her as selfish and unfeeling. Zong Fuli's uncle, Zong Zehou, has publicly commented on the situation, presenting a family genealogy to refute claims of more children and making critical remarks about Zong Fuli's personality.
The lawsuit has significant implications for the industry, society, and even politics in China. Industry insiders suggest that the sudden family asset dispute could quietly stir the competitive landscape of the entire Chinese drinking water industry, creating opportunities for competitors to gain market share. The dispute has also raised concerns about the company's financial health, with reports indicating that Wahaha's net profit in 2022 was less than 20 million RMB.
The public reaction to the news has been one of intrigue and speculation, with a significant focus on familial drama and corporate ethics. Many netizens have expressed fascination with the "battle of the rich family's legitimate daughter against illegitimate children," with some defending Zong Fuli and others criticizing her. Despite the scandal, some consumers have expressed continued loyalty to Wahaha, stating they will only buy Wahaha products.
The lawsuit has also sparked a broader discussion about wealth inheritance and succession in prominent Chinese families. The details of the lawsuit revolving around a deceased patriarch's trust promises highlight the complexities and potential disputes surrounding wealth inheritance in China. The public is questioning why the alleged "illegitimate children" only surfaced after Zong Qinghou's death, with some suspecting that the news and public accusations are a deliberate attempt to discredit Zong Fuli or destabilize Wahaha.
As the situation continues to unfold, one thing is clear: the lawsuit against Zong Fuli has significant implications for Wahaha, the Chinese beverage industry, and the broader discussion about corporate governance and succession in China. With the public closely watching the developments, it remains to be seen how the situation will play out and what the ultimate impact will be on Wahaha and its stakeholders.
