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Zong Qinghou’s Brother Launches Competing Beverage Brand “Wa Xiaozhi,” Heating up Family Feud

Summarized by NextFin AI
  • Zong Zehou has launched a new beverage brand, Wa Xiaozhi, to compete with his niece's brand, Wa Xiaozong, indicating a family feud over inheritance.
  • Zong Fuli resigned as Board Chair, which may impact the company's direction amidst the family rivalry.
  • Wa Xiaozhi aims to attract distributors by offering lower prices and no deposit requirements, with 153 distributors already signed up.
  • The brand's product lineup mirrors that of Wahaha, including popular items like AD calcium milk and coconut water, targeting major distribution channels.

Zong Zehou, the brother of late China’s beverage tycoon and Wahaha founder Zong Qinghou, has launched a new brand – Wa Xiaozhi – to rival with Wa Xiaozong, a brand created by his niece and former heiress of Wahaha, signalling the escalation of the family feud over inheritance.   

Zong Fuli stepped down as Board Chair on Friday after the Board of Directors and Shareholders’ Meeting approved her resignation.

According to promotional materials and confirmed by sales representatives, Wa Xiaozhi held a national distributor conference in Hangzhou on Friday, kicking off its franchise recruitment campaign. Distributors who purchase over 100,000 yuan (about $13,700 USD) in products can gain exclusive regional rights.

A sales representative told reporters that Wa Xiaozhi is intended to compete head-to-head with Zong Fuli’s Wa Xiaozong. “We started operations for the new brand last November,” the representative said. “Work on Wa Xiaozhi began around China’s National Day holiday this month. There’s no deposit required to become a distributor, just an initial order of at least 30,000 yuan.”

The Wa Xiaozhi product lineup mirrors that of Wahaha, including AD calcium milk, mineral water, coconut water, and eight-treasure porridge. “Our formulas are identical to Wahaha’s, but our prices are lower,” the representative claimed.

As of now, Wa Xiaozhi has signed up 153 distributors, mostly in Zhejiang province, with others in Hunan and Guizhou. The brand is currently targeting chain supermarkets and major distribution channels.

Business registry data from Tianyancha shows that Wa Xiaozhi Food (Hangzhou) Co., Ltd. was founded in 2025 and is based in Hangzhou city, Zhejiang province. The company is primarily involved in wholesale operations. Ownership records confirm Zong Zehou as the actual controller of the company.

This development adds a new layer to the ongoing internal struggle within the Zong family, as rival factions now compete not only for control of Wahaha’s legacy—but also for market share in China’s beverage market.

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Insights

What is the background of the beverage industry in China?

How did Zong Qinghou influence the beverage market in China?

What are the key features of the new brand Wa Xiaozhi?

What is the current market situation for beverage brands in China?

How are consumers reacting to the launch of Wa Xiaozhi?

What trends are emerging in China's beverage industry?

What recent developments have occurred regarding Zong Fuli's resignation?

How does Wa Xiaozhi compare to its competitor Wa Xiaozong?

What challenges does Wa Xiaozhi face in a competitive market?

How does the family feud impact the operations of their respective brands?

What are the potential long-term effects of this family rivalry on the beverage market?

Are there any legal implications involved in the family feud over Wahaha’s legacy?

How does pricing strategy differ between Wa Xiaozhi and Wahaha?

What products are offered by Wa Xiaozhi, and how do they compare to Wahaha's offerings?

What role do distributors play in the growth of Wa Xiaozhi?

What strategies is Wa Xiaozhi using to attract distributors?

How might the rivalry between Zong Zehou and Zong Fuli evolve in the future?

What lessons can be learned from this family feud for other businesses?

Are there historical precedents for family disputes affecting brand competition in the beverage industry?

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