Recently, the use of Wahaha’s trademark has become controversial again. It was learned from people familiar with the matter that Wahaha issued an internal document stating that in order to maintain compliance with the use of the "Wahaha" brand, the company decided to switch to the new brand "Waxiaozong" starting from the new sales year of 2026. Internally, it is generally believed that changing the trademark is a very dangerous decision, "a matter of life and death."
Text | "BUG" column Zhang Ao
In fact, since Zong Fuli took office, Wahaha has begun drastic reforms internally. In the past six months, the group has "made a move" twice: In April, the group suddenly issued eight notices of personnel dismissal, involving a large number of former mid-level and senior managers of Wahaha Group; in July, the group made major adjustments to the national sales market, including the removal or replacement of regional managers in 12 regions including Northern Hebei, Southern Hebei, Hubei, Anhui, and Northern Henan.
As of press time, Wahaha has not responded to multiple documents.
It was revealed that the trademark will be changed suddenly, insiders: It is a dangerous move, a matter of life and death
Recently, the "BUG" column learned from people familiar with the matter that Wahaha issued an internal document: Since the death of the founder of Wahaha Group, the company has been working hard to resolve various historical-related legacy issues. In order to maintain the compliance of the use of the "Wahaha" brand, the company has decided to switch to the new brand "Waxiaozong" starting from the new sales year of 2026.
At the same time, the document also pointed out that "because complex historical-related issues cannot be effectively resolved in the near future, the company's operations are always exposed to relevant legal risks. Therefore, the above arrangements have to be made."
Once the document was exposed, some dealers said they did not know about it in advance, and some dealers said they only saw the notice.
A senior employee who has been working at Wahaha for eleven years explained to the "BUG" column, "Under normal circumstances, announcements will be sent internally first, and news from dealers will be delayed by about two or three days."
It is understood that the "Wahaha" trademark is now owned by Wahaha Group, but the group's equity structure is complicated - among them, Hangzhou Shangcheng District Cultural and Commercial Tourism Investment Holding Group Co., Ltd. holds 46% of the shares and is the largest shareholder of Wahaha Group; Zong Fuli inherited the shares held by Zong Qinghou during his lifetime and currently holds 29.4%; Hangzhou Wahaha Group Co., Ltd. Grassroots Trade Union Joint Committee holds 24.6% of the shares.
According to the above-mentioned documents, under the current equity structure, the use of the Wahaha trademark must obtain the unanimous consent of all shareholders of Wahaha Group, otherwise no party has the right to use it.
Previously, Zong Fuli had tried to transfer the Wahaha trademark to Hangzhou Wahaha Food Co., Ltd., which she actually controlled, saying "it was to improve the compliance of the group's operations." However, because multiple shareholders of the trademark transfer had voting rights, the transfer ended in failure.
In fact, Zong Fuli started preparations for "establishing a new branch" as early as February this year. The Tianyancha App shows that on February 19, multiple categories of Waxiaozong trademarks were applied for registration, belonging to Hongsheng Beverage Group Co., Ltd., which is actually controlled by Zong Fuli. During the same period, Hongsheng also applied for the registration of trademarks such as Zong Xiaoha and Wa Xiaoha. In May, it applied for the registration of multiple categories of goods under the trademark "Wa Xiao Zong".
Wahaha has publicly stated, "Due to the early transfer of the Wahaha trademark, it is still in the registration process and is uncertain. For this reason, our company does not rule out the launch of a new private brand in the near future and has made relevant preparations for this transformation."
And this is not the first time Zong Fuli has built her own brand. As early as 2016, Zong Fuli founded her own beverage brand KELLYT ONE. "KELLY" is Zong Fuli's English name. The brand focuses on the new generation of people in first- and second-tier cities and covers products such as fruit and vegetable juices, tea drinks, and sparkling water.
In terms of marketing and marketing strategies, KELLYONE promotes its brand through film and television promotion, KOL matrix promotion, music festival cooperation, creative pop-up stores and other younger methods. It has also invited artists Wang Yibo, Chen Kun and Xu Kai to endorse different series of its products. Although it has gained a certain degree of popularity among young people through marketing, the KELLYONE brand has always been accused of failing to successfully penetrate the mass market. Currently, KELLYONE’s online Taobao flagship store and Douyin store have been closed, and all products have been removed from the shelves.
For various reasons, veteran employees believe that changing the trademark is a "dangerous move" and a very dangerous decision, "a matter of life and death."
Major staff adjustments twice a year
Since Zong Fuli took office, Wahaha has begun drastic reforms.
On the one hand, there are frequent transfers of management personnel. In April, Wahaha Group issued eight dismissal notices, involving a large number of former mid-level and senior managers of Wahaha Group. People familiar with the matter told the "BUG" column that this adjustment is true and a formal notice has been issued internally. This adjustment involves multiple regions including central China, northwest, southwest, northeast, etc., and also includes personnel adjustments in various sales markets and functional departments.
At the same time, the "BUG" column also learned that Wahaha made major adjustments to the national sales market in July, including the removal or replacement of regional managers in 12 regions including Northern Hebei, Southern Hebei, Hubei, Anhui, and Northern Henan.
On the other hand, a large number of old employees at the grassroots level have had their salaries reduced and their positions transferred. Discussions about Wahaha Group are common on social platforms, mainly through job transfers, salary reductions and changing work locations. People familiar with the matter gave an example, such as transferring employees from a new factory to an old factory 70 kilometers away. If the employees can't stand it, they will leave.
Some former Wahaha employees confirmed that many changes occurred after employees changed their contracts, such as layoffs, pay cuts, low wages, etc. Some of them couldn't hold on and left on their own. Even if the company proposes layoffs, the company's main body will be different after the change, and the compensation will be less.
Another person who has been in contact with Wahaha's resigned employees for a long time revealed that the cost for old employees is higher. Even if the labor contract is renewed or the entity is transferred, many terms are set. "Some employees are lucky enough to get compensation, but it is still 30%, 50% or 30% off."
Amid internal and external troubles, Wahaha's sales are also declining. There are reports that Wahaha's sales this year have declined compared with previous years. An old employee said, "Under normal circumstances, a slight decline is acceptable."
"I don't want to inherit a company, but I can own it. If I succeed, I hope to acquire Wahaha." Zong Fuli once said to the outside world. At that time, the industry, including those within Wahaha, were looking forward to Zong Fuli's arrival, believing that she might lead Wahaha to new heights.
But right now, this wish may come true. On the one hand, Zong Fuli has to weigh the relationship between Wahaha and Hongsheng, and on the other hand, she has to resolve the conflicts between old employees. This process is destined to be difficult for Wahaha.