In a move that has sent shockwaves through China’s fast-moving consumer goods sector, Kelly Zong (Zong Fuli), the president of Hongsheng Beverage Group and heiress to the Wahaha empire, has initiated a radical purge of her company’s top brass. An internal memo reveals the dismissal of four core executives—the heads of marketing, administration, legal, and production—alongside a wholesale dismantling of the marketing department’s middle management. This is not a mere reshuffle; it is a declaration of 'wartime control' by a leader who is now directly overseeing the company’s sales operations.
The restructuring comes at a moment of existential crisis for Hongsheng, which has long functioned as the 'shadow factory' for the beverage giant Wahaha. While Hongsheng operates 16 massive production bases, it lacks the absolute right to use the Wahaha trademark, which remains under the control of the parent Hangzhou Wahaha Group. As the successor to her late father, Zong Qinghou, Kelly Zong is moving aggressively to decouple Hongsheng from its legacy dependencies, a strategy insiders are calling 'De-Wahaha-fication.'
Pressure on the ground is reaching a boiling point as the industry enters the critical summer peak season. Internal data indicates that Hongsheng’s national collection targets reached only 66% as of early May, a 24% year-on-year decline. Most alarming, however, is the shipping completion rate, which has cratered to a mere 15%, representing a staggering 83% drop compared to the previous year. This suggests a total breakdown in the company's distribution channels and dealer confidence.
The purge targets those deeply entrenched in the traditional 'Joint Sales System'—a legacy model built on personal relationships and loyalty that defined her father’s era. By removing veterans like Marketing Director Wu Tingyan and Chief of Staff Ye Yaqiong, Zong is clearing the path for a flatter, data-driven organization. New appointees face a grueling six-month probationary period, a rarity in an industry that typically prioritizes stability over such aggressive performance-based vetting.
Beyond personnel, Zong is gutting the company’s operational overhead by outsourcing non-core functions such as logistics, utilities, and warehouse management. This leaner model is designed to pivot Hongsheng from a passive OEM manufacturer into an independent brand powerhouse capable of launching its own labels, such as the nascent 'Wa Xiao Zong' line. The goal is to build a self-sustaining ecosystem that can survive even if the rights to the core Wahaha brand are eventually severed.
However, this 'shock therapy' carries immense risks. Thousands of dealers are currently sitting on mountains of unsold inventory, with many actively refusing new shipments. Zong’s response has been characteristically iron-fisted, closing the accounts of 22 non-compliant dealers and issuing formal warnings to hundreds more. Whether this administrative blitz can revive sales in time for the summer heat, or if it will simply alienate the very partners the company needs to survive, remains the defining question of Zong’s early tenure.