The rhythmic hum of bottling lines has fallen silent across most of Wahaha’s manufacturing empire. Reports indicate that the beverage giant, a household name in China for decades, has suspended production on roughly 70% of its lines, including its flagship AD Calcium Milk and Nutri-Express products. While the company characterizes the move as a routine production adjustment, the scale of the shutdown—extending across both Wahaha Group and Hongsheng Group facilities—has sent ripples of concern through China’s consumer sector.
Company insiders and seasonal logic suggest that the hiatus is a response to the post-Spring Festival inventory cycle. In this view, the early 2026 production surge met a later-than-usual holiday, leaving warehouses overflowing and necessitating a cooling-off period to digest stock. Officials claim that production will resume by early April, positioning the pause as a tactical maneuver rather than a structural failure.
However, industry analysts are less convinced by the narrative of seasonal normalcy. Food industry veteran Zhu Danpeng notes that while inventory management is standard, a month-long lull following the Spring Festival usually signals a lack of market pull. If consumer demand were robust, distributors would already be clamoring for restocks. The prolonged silence at the factories suggests that Wahaha’s products may be lingering on shelves longer than the company cares to admit.
This industrial friction arrives at a precarious moment for the company’s leadership. Following the passing of legendary founder Zong Qinghou, the transition of power to his daughter, Zong Fuli, has been anything but smooth. By late 2025, Zong Fuli had reportedly stepped back from her roles as legal representative and chairwoman of the main group, focusing instead on the Hongsheng Group subsidiary. This fragmented leadership structure, now headlined by General Manager Xu Simin, faces the daunting task of modernizing a legacy brand in an era of hyper-competition.
Internal sources reveal a disconnect between the corporate headquarters and the factory floor. While some specialized facilities, such as those producing five-gallon water barrels in Zhejiang, remain operational, the broad shutdown of 'milk lines' indicates a significant strategic retreat. The tension between the Zong family legacy and the new management team under Xu Simin continues to manifest in public absences and organizational reshuffling, casting a shadow over the company's modest 2025 revenue growth.