Zong Fuli (Kelly Zong), the daughter of the late Wahaha Group founder Zong Qinghou, has reportedly stepped down from her positions as vice chairman and general manager of the Chinese beverage giant. This development follows months of internal discord and shareholder unrest since her father's passing earlier this year.
According to a resignation letter circulating online, Zong Fuli cited shareholder concerns about the company's management as the reason for her departure. The letter, dated July 15, states that the questions raised by shareholders made it impossible for her to continue fulfilling her management responsibilities. "I have submitted my resignation letter to the company and all shareholders, urging them to promptly appoint a new general manager to ensure the normal operation of the group and protect the interests of the company, customers, and employees," Zong wrote.
Zong Qinghou, who founded Wahaha in 1987, passed away in February at the age of 79. Under his leadership, Wahaha grew into one of the world's leading food and beverage companies, becoming a prominent name in the industry and a major player among China's top 500 enterprises.
Since Zong Qinghou's death, Wahaha has faced significant challenges. Zong Fuli, born in 1982, assumed the roles of vice chairman and general manager but has struggled to maintain stability within the company. Reports indicate that her leadership was met with skepticism from shareholders, particularly those representing the state-owned capital of Hangzhou's Shangcheng district, which holds a 46% stake in Wahaha. The remaining shares are held by Zong Qinghou's estate (29.4%) and an employee committee (24.6%).
它（娃哈哈集團）是我爸一手創下的江山，
作為他女兒來講，我應該有責任去守護它。
—— 宗馥莉 Kelly Zong （2019.11） pic.twitter.com/tjpgd7PLhC — LJ 論見 (@DiscussLJ) July 18, 2024
Despite her efforts, Zong Fuli's tenure was marked by growing tensions and resignations from other senior executives. The situation reportedly came to a head with her resignation, which has yet to be officially confirmed by Wahaha. Several subsidiaries of the company have indicated that they have not received any formal notification regarding her departure.
The State-owned Assets Supervision and Administration Commission of Shangcheng district is currently verifying the resignation, adding another layer of complexity to the unfolding situation. A spokesperson for an investment company under the local government, when asked about Zong's resignation, deflected the inquiry back to Wahaha, which has remained silent on the matter.
Yang Yiqing, executive president of Business Seminar Zhejiang, commented on the difficulties Zong Fuli likely faced in her role. "Zong Fuli probably faces challenges in handling integration with the major state-owned shareholders, the existing management model, and the management team during the company's transition. It is crucial to explore and establish a new institutional framework that aligns with the interests and beliefs of all parties involved. This is definitely not an easy task," Yang said.
Public reaction to the news has been mixed, with some expressing sympathy for Zong Fuli's predicament, while others view it as an inevitable consequence of the pressures she faced from shareholders and the company's complex internal dynamics.
The resignation of Zong Fuli raises significant questions about the future direction of Wahaha. The company, which produces popular beverages such as Hello-C, U-Yo, and Nutri-Express, will need to navigate this leadership transition carefully to maintain its market position and operational stability.
As Wahaha seeks to appoint a new general manager, the company's ability to reconcile the differing interests of its stakeholders will be crucial. The ongoing discussions among shareholders and the management team will determine the path forward for one of China's most iconic beverage brands.
