Wahaha heiress Kelly Zong Fuli quits Chinese drinks giant 5 months after founder’s death

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In an internal letter, Zong blames her resignation on the district government and some shareholders who questioned her legitimacy as leader

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Zhang Shidongin ShanghaiandDaniel Renin Shanghai

Published: 6:00pm, 18 Jul 2024

Kelly Zong Fuli has tendered her resignation as vice-chair and general manager of China’s Hangzhou Wahaha Group, according to an internal company letter, in a surprising move less than five months after her father’s death put her in charge of the drinks company he founded.

In the letter seen by the Post, Zong said Hangzhou’s Shangcheng district government and some of Wahaha’s shareholders had questioned her legitimacy as the company’s leader, leaving her unable to perform her duties of managing Wahaha and its subsidiaries.

“I have already tendered the resignation letter to Hangzhou Wahaha Group and all the shareholders and urged related parties to take responsibility of hiring a new general manager,” she said in the letter, dated Monday.

Calls to an official in Wahaha’s public relations department went unanswered. Two sources with knowledge of the matter said it was still uncertain whether the company’s board or the local state-owned assets watchdog had accepted Zong’s resignation.

The shake-up adds to the tumult at Wahaha, which was once China’s biggest drinks maker but has lost market share as a lack of products catering to younger customers collides with increased competition from the likes of Nongfu Spring.

Zong assumed control of the privately held company after her father Zong Qinghou died in February, and was expected to be appointed as chairwoman.

An investment arm under the Hangzhou Shangcheng district government is the biggest shareholder in Wahaha, with a 46 per cent share. Zong’s family has a 29.4 per cent interest, followed by a stockholding party representing Wahaha’s employees with 24.6 per cent.