Kelly Zong, the daughter of the Late Chinese Billionaire Zong Qinghou, Takes Over as CEO of the Wahaha Group

Kelly Zong, also known as Zong Fuli, the daughter of the late Chinese billionaire Zong Qinghou, has officially assumed control of Hangzhou-based beverage giant Wahaha Group, according to a local business registration system. The Qichacha business registration platform confirms that Zong is now the company’s chairman and CEO and has acquired a significant stake in the privately held company, which was the foundation of her father’s $5.9 billion fortune, as estimated by Forbes. Zong Qinghou founded Wahaha nearly four decades ago.

A graduate of Pepperdine University in the United States, Zong joined Wahaha Group in 2004, initially leading the marketing and public relations department before becoming vice chairman in 2021. Though she had been groomed to succeed her father, her journey to leadership has not been without difficulties.

Following her father’s death in February, a resignation letter, reportedly written by Zong, began circulating on Chinese social media. The letter suggested that Zong had decided to resign from her roles as vice chairman and CEO after certain shareholders challenged her authority to manage the company. However, in late July, Wahaha released a statement on its website affirming that Kelly Zong would continue to fulfill her management duties after what the company described as “friendly negotiations with various shareholders.”

Zong now faces the task of reviving Wahaha Group’s sales, which peaked at 78 billion yuan ($11 billion) in 2013. Her father had been recognized as China’s richest man in 2010, with a net worth of $8 billion, and returned to the top spot in 2012 with a fortune of $10 billion, according to Forbes. However, as competition intensified and consumer preferences shifted away from the company’s core products, such as bottled water and milk-based drinks, Wahaha’s revenues fell to 51.2 billion yuan in 2022, based on data from the All-China Federation of Industry and Commerce.

Analysts have noted that Wahaha Group is currently restructuring its distribution network, which is heavily focused on lower-tier towns and cities, a strategy that may hinder efforts to attract younger, health-conscious consumers with newer products like energy drinks and tea-based beverages.

Harry Han, a research analyst at Euromonitor International, a London-based market research firm, indicated that the company is making progress, with sales showing “healthy growth” in 2023. He noted in an emailed statement that Wahaha is moving towards new markets and consumers and building trust. He added that stable expansion of offline shelf space, along with new products and aligned marketing strategies, is expected to help Wahaha strengthen its position in the future.

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