Nearly a year after the passing of her father, the legendary founder of Wahaha, Zong Fuli (Kelly Zong) is making a definitive move to step out of the patriarch's shadow. Her latest product launch, a mixed-fruit carbonated drink called "Guoran Bobo," is not just a new beverage but a strategic signal. The product prominently features the branding of Hongsheng Group, the subsidiary Zong has controlled for nearly two decades, rather than the core Wahaha brand that made her family a household name across China.
This shift highlights a deepening rift between the legacy of the elder Zong’s "deep distribution" model and Kelly’s vision for a modern, digital-first enterprise. By utilizing Hongsheng as the primary vehicle for growth, Zong is attempting to bypass the traditional, often cumbersome, network of distributors that defined Wahaha’s success in the 1990s. Instead, she is pivoting toward a "light" model focused on e-commerce, instant retail platforms like Dingdong Maicai, and high-end convenience stores in Tier-1 cities.
However, this transformation is proving to be a painful one, marked by significant internal organizational trauma. Reports indicate that the once-robust R&D department has been hollowed out, shrinking from over 130 staff to fewer than 20 during a forced transition to Hongsheng contracts. This loss of institutional knowledge is palpable; the new carbonated line was reportedly developed by a skeleton crew with little experience in the category, relying on technical advice from former colleagues who had already departed the firm.
The friction extends beyond the laboratory to the balance sheet. Recent internal documents reveal a staggering 83% year-on-year decline in shipments as of May 2026, with the company meeting only a fraction of its performance targets. While Zong characterizes the relationship between Wahaha and Hongsheng as two pillars of the same ecosystem, the market sees a "dual-track" system in crisis. Legacy distributors, neglected in the new strategy, are reportedly seeing a lack of presence from sales representatives, allowing rivals like Nongfu Spring to seize valuable shelf space.
Zong’s challenge is emblematic of the broader struggle facing China’s second-generation entrepreneurs: how to modernize a "traditional" industry titan for a Gen-Z audience without destroying the foundation that built it. While her KELLYONE brand has experimented with celebrity endorsements and trendy packaging for a decade, it has yet to achieve the mass-market penetration required to sustain the empire. As she pushes Hongsheng to the forefront, the question remains whether she is building a new future or simply presiding over the fragmentation of a national icon.