China Wahaha heiress Kelly Zong Fuli back at the helm after ‘friendly negotiations’

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Last week’s resignation turns out to be a non-event and the company apologising ‘for the issue that unnecessarily led to a lot of media coverage’

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Daniel Renin ShanghaiandZhang Shidongin Shanghai

Published: 12:56pm, 23 Jul 2024Updated: 1:10pm, 23 Jul 2024

Last week’s resignation tendered by Kelly Zong Fuli, heiress of once China’s largest soft drink producer, turned out to be a non-event as the company announced that she would retain her role as general manager of Hangzhou Wahaha Group.

Following “friendly negotiations” with shareholders, Zong decided to continue to perform her management responsibilities, Wahaha said in a statement on Monday evening.

“We appreciate the recent attention from the public and media, and apologise for the issue that unnecessarily led to a lot of media coverage,” said the statement.

It snuffed out speculations about a management reshuffle at the soft drink giant after Zong, daughter of Wahaha’s late founder Zong Qinghou, handed in her resignation letter, complaining about shareholders’ lack of trust in her leadership.

The Post reported on Thursday that it was uncertain whether the board or the local state-owned assets watchdog had accepted Zong’s resignation. She is the company’s vice-chair and general manager.

An investment arm of 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.

Two sources briefed on the matter said Zong, 42, who was put in charge of the drinks company in February after her father’s death, had differing views about the growth path of Wahaha, which has lost market share due to increased competition from the likes of Nongfu Spring.