BRIEF: Wahaha to rebrand its drinks amid ongoing shareholder conflict

Wahaha Group, one of China’s largest beverage companies and most famous brands, has launched a campaign to gradually replace its namesake brand with the new “Wa Xiao Zong” starting from next year, as it faces turbulence related to trademarks and its shareholders. The change is taking place under the leadership of Zong Fuli, as turbulence surrounds the company after the death of founder Zong Qinghou last year, according to Caixin.

An internal notice said that “complex historical issues cannot be resolved in the short term,” leaving the company exposed to ongoing legal risks. Under its current shareholding structure, use of the “Wahaha” trademark requires unanimous approval of all shareholders. Otherwise, no party may exercise the right to use it independently.

Wahaha Group’s present shareholders include Hangzhou Shangcheng District State-owned Assets with a 46% stake, Zong Fuli with 29.4%, and the company’s employee shareholding association holding 24.6%. Some employees have filed lawsuits against Zong Fuli over shareholding ownership disputes.

The new Wa Xiao Zong brand was registered by Hongsheng Beverage Group, a company controlled by Zong Fuli, in May 2025. Sources cited in the report said Zong has set an annual sales target of 30 billion yuan ($4.2 billion) for the brand, equivalent to about 80% of Wahaha’s yearly sales.

At the same time, the company has also begun “cleaning up” family-affiliated subsidiaries. Shanghai Wahaha Drinking Water Co., which had operated for more than 20 years, was forced to shut down in July after its trademark license expired. The company’s legal representative, Zong Wei — cousin of late founder Zong Qinghou — owns 30% of its shares, while the remainder is held by Zhejiang Wahaha Industrial Co. and social investors.

Zong Wei said the water affiliate had remained profitable for years. But without a renewed authorization contract, it was ultimately shut down by market regulators. Wahaha Group, for its part, stressed that the trademark authorization contract had expired and was not renewed.

By Lee Shih Ta

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