Zong Qinghou, the self-made billionaire founder of the Chinese beverage giant Wahaha Group, has passed away at the age of 79. He is known for leading Wahaha to become a household name in China and for navigating a high-profile dispute with French food giant Danone.
Zong co-founded Wahaha in 1987, and through his shrewd business sense, the company quickly grew into a major player in China’s beverage market. However, his journey wasn’t without its challenges. In 2007, a souring partnership with Danone led to a public dispute. Zong accused Danone of attempting a hostile takeover, and Danone countered with accusations of Wahaha operating competing companies. The high-profile saga eventually ended in 2009 with Danone selling its stake in the joint ventures to Wahaha for an undisclosed sum.
Beyond the boardroom disputes, Zong also faced personal threats. In 2013, he was attacked by a disgruntled job seeker, highlighting the pressures faced by prominent figures in China.
As Zong aged, concerns around succession planning grew. In 2021, his daughter Zong Fuli, with her international education and understanding of global markets, was appointed vice-chairman and general manager, positioning her to eventually take over the reins of the group. Her focus lies in revitalizing the brand and attracting younger generations through improved sales channels.
Wahaha, like many companies, encountered challenges in recent years. Intense competition and evolving consumer preferences put pressure on their revenue. Notably, Nongfu Spring, a major rival, gained significant market share with innovative marketing strategies. Additionally, China’s economic slowdown, impacted by COVID-related restrictions and broader industry regulations, posed further challenges. Despite these difficulties, Zong remained optimistic about the country’s future, expressing public support for the government’s plan to bolster private businesses.
Zong, a member of the Communist Party of China, actively participated in Chinese politics, serving as a delegate to various national and provincial congresses. His legacy extends beyond business, encompassing a successful career in politics and a strong influence on China’s beverage landscape.