Chinese Beverage Tycoon Zong Qinghou Dies at 79

Zong Qinghou, the renowned founder and chairman of Hangzhou Wahaha Group, a leading Chinese beverage giant, passed away at the age of 79, as confirmed by his company. Zong, a self-made billionaire, rose from humble beginnings to become China’s wealthiest individual in 2010, 2012, and 2013.

Starting his journey in 1987, Zong ventured into business at the age of 40, initially selling snacks in a local school canteen in Hangzhou. His entrepreneurial spirit and keen business acumen led him to expand his business, eventually establishing Wahaha as a household name in China.

Under Zong’s leadership, Wahaha diversified its product portfolio to include bottled water and nutritional drinks for children, leveraging the company’s name, which translates to the sound of a child’s laughter. Zong’s strategic acquisition of a state-owned factory and the establishment of a vast distribution network contributed significantly to Wahaha’s success, enabling the brand to reach consumers nationwide.

In 2010, Zong’s wealth peaked at $8 billion, marking his first reign as China’s richest person. However, his journey was not without challenges. A partnership dispute with French food and beverage giant Danone in 2007 tested Zong’s resolve. Despite initial success, the partnership soured, leading to a buyout of Danone’s stake in their joint ventures.

Zong regained the top spot on Forbes’ China wealth rankings in 2012 with a net worth of $10 billion. However, increasing competition, particularly from Nongfu Spring, led by billionaire Zhong Shanshan, posed challenges to Wahaha’s market dominance. Zhong eventually surpassed Zong to become China’s richest person, highlighting the evolving landscape of China’s beverage industry.

Despite facing setbacks, Zong remained committed to traditional sales channels, expressing skepticism towards e-commerce’s impact on the “real economy.” However, Wahaha’s digital marketing efforts increased under his daughter Kelly Zong’s leadership, who took on a more prominent role in recent years.

Kelly, appointed CEO and vice chairman of Wahaha in 2021, has spearheaded initiatives to appeal to a younger demographic, launching social media campaigns and introducing new tea-based and sugar-free beverages. Zong had expressed his willingness to hand over the reins to Kelly or groom professional management, recognizing the changing dynamics of leadership succession in family businesses.

Wahaha, a privately held company, generated revenues of 51.2 billion yuan ($7.1 billion) in 2022, down from its peak of $11 billion in 2013. With Kelly at the helm, Wahaha aims to rejuvenate its growth trajectory, catering to evolving consumer preferences and embracing digital transformation.

Zong’s legacy as a visionary entrepreneur and pioneer in the Chinese beverage industry will endure, with his daughter poised to carry forward his entrepreneurial spirit and drive for innovation.