Strong leader

Zong was also known for his firm leadership style, exemplified by his resoluteness during lengthy business disputes between Wahaha and French dairy giant Danone. A joint venture was formed in 1996 with the company producing bottled water and congee products and Wahaha's production doubled from 1996 to 1997.

However, a decade later, tensions arose when Danone tried to acquire a 51-percent stake in Wahaha's non-joint venture company at a net asset price of 4 billion yuan, along with the Wahaha trademark.

Zong strongly opposed the move and often faced the media alone.

In 2009, a settlement was reached and the Wahaha trademark remained with the Wahaha Group. "Let's not be afraid of international lawsuits. We don't bully others, but we also can't let others bully us," Zong said at the time.

Under his leadership, the Wahaha Group flourished. It diversified its portfolio to more than 200 products, including packaged drinking water, and protein, carbonated and tea beverages.

Since its founding 35 years ago, Wahaha has accumulated sales of 860.1 billion yuan, profits and taxes of 174 billion yuan, and tax payments of 74.2 billion yuan. The company now has 81 production bases and 187 subsidiaries in 29 provinces, municipalities and autonomous regions across the country, with nearly 30,000 employees.

Fluctuating fortunes

A State-owned investment company in Hangzhou holds 46 percent of the shares in the Wahaha Group while Zong and Wahaha's shareholding platform hold 53.2 percent.

The group operates without a deputy general manager, with production, sales, and other responsibilities handled by various directors. In 2012, Zong said in an interview that: "It (Wahaha) is my entire life, my dreams, values, label and purpose. It is proof of my existence in this world."

Last November, Zong made his final public appearance at a dealers' conference, the company's annual flagship event. Addressing attendees, he discussed his health issues and his decision to quit smoking. He added that retirement is a concept foreign to him.

In recent years, Zong's daughter Zong Fuli, 42, has emerged as a prominent figure in the company, gradually assuming key roles and responsibilities.

Since 2007, Zong Fuli, who studied in the United States from the age of 14, has managed the Hongsheng Beverage Group and invested in upstream businesses including sugar-free tea drinks and sparkling water products. In 2020, she was appointed deputy general manager of Wahaha's marketing unit.

Since 2015, Wahaha has grappled with shifting consumer behavior, tastes and the rise of online shopping. The new trend challenged its traditional distribution methods, leading to an 8-year sales decline and subsequent recovery efforts.

From 2015 to 2020, the company's performance hovered around 46 billion yuan, marking a 25 percent decrease from its peak in 2013.

In recent years, Wahaha has made efforts to diversify its interests, including the launch of shopping malls and forays into children's formula milk. It also expanded into health products and franchised Wahaha milk tea rights.

Despite a revenue decline from over 70 billion yuan in 2013 to above 50 billion yuan in 2021, Wahaha is still a formidable player in the industry and boasts revenues twice that of its closest competitor, Nongfu Spring. "Innovation of its product portfolio is still what Wahaha needs the most," said Zhu, the analyst.

Concern for others

Social responsibility was at the top of Zong's agenda.

Having personally experienced poverty and hardship, he remained deeply connected with less fortunate people. In 2020, the company allocated 942 million yuan to build over 1,360 apartments for their employees in Shangcheng district, Hangzhou.

In 2013, during the two sessions, the annual gatherings of the National People's Congress and the Chinese People's Political Consultative Conference, Zong, who was an NPC deputy, proposed establishing a tiered housing supply system to reduce housing costs. He also advocated exempting working-class people from paying personal income tax.

In 2020, when businesses in China encountered headwinds due to the COVID-19 pandemic, he called for enterprises to shoulder more responsibility to ensure the interests of employees are met and to keep employment steady.

Last year, he urged private enterprises to keep investing and developing their businesses to protect jobs.

Lily Xia, who operates a consultancy in Singapore for Chinese companies going overseas, said Zong had a deep impact on her personal and professional journeys. She began her career as a junior cashier with the Wahaha Group after graduating from a leading university in 1999.

When Xia won a running competition at the annual Wahaha Games, a corporate sports event, Zong presented her with a medal and gently patted her on the shoulder. "Keep going. You have great potential," he said. His words gave the young woman newfound confidence.

"He is a father to all of us, a guiding light," Xia said. "His sincerity, diligent work ethic and humble demeanor are inspirations for us as employees."

After four years with Wahaha, Xia was able to buy her first apartment in Hangzhou and pay for her MBA tuition fees in Singapore.

In 2012, Xia completed her overseas studies and later returned to work for Zong for a second time helping expand the group's international business.

Zong's real legacy was his ability to impart knowledge and values to his employees, teach them the importance of hard work and help others achieve their dreams, Xia said.

Ren Weifeng, a former secretary of Zong, said in a WeChat post that the businessman diligently looked at all the reports given to him. "Every night at nine, documents and reports would be printed out for him. With a pen, a pack of cigarettes and a cup of tea, he would review all the reports, making notes until midnight. The next morning, all departments would carry out their work according to his instructions. He did this every day," wrote Ren.

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