Beijing, October 10, 2025 – In a move that has sent ripples through China’s consumer goods sector, Zong Fuli, the heiress to the Wahaha Group empire, has officially resigned from her roles as chairman, legal representative, and director of the Hangzhou-based beverage giant. The resignation, confirmed on September 12, 2025, through the company’s shareholder and board procedures, marks the end of a tumultuous period for one of China’s most iconic family-run businesses. This development comes amid ongoing inheritance disputes, legal battles, and investigations that have plagued the company since the death of its founder, Zong Qinghou, in February 2024.
The Legacy of Wahaha: From Humble Beginnings to Beverage Behemoth
Founded in 1987 by Zong Qinghou in Hangzhou, Wahaha Group quickly rose to prominence as China’s largest bottled water and soft drinks producer. Starting with a modest loan of 140,000 yuan (about $20,000 at the time), Zong built the company into a powerhouse with annual revenues exceeding 50 billion yuan ($7 billion) by the early 2020s. Known for its affordable, mass-market products like purified water, nutrition drinks, and juices, Wahaha became a symbol of China’s economic boom, employing over 30,000 people and dominating the domestic beverage market.
Zong Qinghou, often dubbed the “canvas shoe billionaire” for his frugal lifestyle despite a personal fortune estimated at $2 billion, steered the company through fierce competition with global giants like Coca-Cola and PepsiCo. His daughter, Zong Fuli (also known as Kelly Zong), joined the family business in 2004 after studying abroad in the United States. She gradually took on key roles, including vice chairman and general manager, positioning her as the natural successor.
A Timeline of Succession Drama
The saga began with Zong Qinghou’s passing in February 2024 at age 79, triggering a wave of consumer nostalgia that boosted Wahaha’s sales temporarily. 1 Zong Fuli assumed control as vice chairman and general manager, but cracks soon emerged. In July 2024, she abruptly resigned, citing shareholder doubts about her management abilities. This brief exit lasted only weeks; by mid-August 2024, she reclaimed her position as chairman and gained board control, seemingly stabilizing the ship.
However, the respite was short-lived. Reports surfaced of deeper family rifts, including a December 2024 lawsuit filed in Hong Kong by three half-siblings against Zong Fuli, leading to a temporary injunction. By July 2025, she faced another lawsuit, prompting Wahaha to issue a public statement defending her. The inheritance battle escalated, spotlighting the complexities of wealth transfer in Chinese family firms.
Tensions peaked in August 2025 when Zong Fuli’s bank account in Hong Kong was frozen amid the disputes. More recently, in early October 2025, rumors swirled that she had been “taken away for a probe,” though insiders confirmed she was on duty normally the previous day. Adding fuel to the fire, Yan Xuefeng, a senior executive and close confidant of Zong Fuli, along with the director of Hongsheng Group’s production center, came under investigation for disciplinary violations.
The culmination was her formal resignation on September 12, 2025, which has been described as “nailed down” by sources close to the matter. Speculation abounds that this exit signals the Zong family’s complete withdrawal from Wahaha, with Zong Fuli’s younger half-brother still too young to take over.
Underlying Causes: Shareholder Pressure, State Influence, and Family Feuds
Analysts point to a confluence of factors driving Zong Fuli’s departure. Shareholder skepticism over her leadership style—described as more Western-influenced and aggressive compared to her father’s paternalistic approach—has been a recurring theme. Wahaha’s ownership structure, which includes stakes from Hangzhou Shanglv (a state-linked entity) and government shares, suggests potential state intervention in the transition. This has led to quips that Wahaha is transforming into “State Haha,” implying a shift toward greater public or governmental control.
The inheritance disputes reveal broader challenges in China’s private sector, where family businesses often grapple with succession in a regulatory environment favoring stability and state oversight. Zong Fuli’s personal assets, including a $35 million mansion in San Marino, California, and properties in the US and Canada, indicate the family has diversified holdings outside Wahaha, potentially softening the blow of her exit.
Legal experts highlight lessons from this case: the need for clear succession planning to avoid shareholder revolts and family infighting. As one commentator noted, “The peaches have been picked by others,” referring to the family’s perceived loss of control over the empire they built.
Market Impact and Industry Ripples
Wahaha, though privately held, influences a vast supply chain and competes in a $100 billion-plus Chinese beverage market. Zong Fuli’s resignation could lead to leadership voids, potentially eroding market share amid competition from Nongfu Spring and emerging health-focused brands. Stock prices of related suppliers and competitors fluctuated in response to the news, with some analysts predicting a short-term dip in Wahaha’s sales due to uncertainty.
Broader implications extend to China’s family enterprises, which account for over 80% of private firms. Cases like Wahaha underscore the risks of opaque ownership and the growing role of state entities in “reforming” legacy companies. Comparisons have been drawn to other conglomerates like Lenovo, questioning if similar “black histories” from early privatizations could invite scrutiny.
Looking Ahead: Wahaha’s Future Without the Zongs
With Zong Fuli’s departure, attention turns to who will steer Wahaha next. Potential successors include internal executives or state-appointed figures, given the shareholder mix. The company has yet to announce a replacement, but insiders suggest a focus on stabilizing operations amid the probes.
For Zong Fuli, this may not be the end. At 43, with international experience and substantial personal wealth, she could pivot to new ventures, perhaps leveraging her family’s overseas assets. Her story serves as a cautionary tale for China’s next generation of business leaders: in the interplay of family, finance, and state power, succession is rarely straightforward.
As Wahaha navigates this transition, the beverage industry watches closely. Will it retain its market dominance, or will this mark the dilution of a once-unassailable family legacy? Only time—and perhaps further boardroom battles—will tell.