Zong Qinghou, the founder and chairman of Hangzhou Wahaha Group Co., Ltd. (Wahaha Group), a leading beverage company in China, passed away on February 25, 2024, at the age of 79. The cause of death has not been publicly disclosed.
A Life Intertwined with China’s Transformation
Born in 1945, Mr. Zong’s life mirrored China’s remarkable economic journey. He witnessed the nation’s transformation from a predominantly agricultural society to a global economic powerhouse, and his entrepreneurial spirit flourished under the reforms initiated by Deng Xiaoping. Leveraging a $22,000 family loan, Mr. Zong established Wahaha in 1987, capitalizing on the burgeoning consumer demand in China’s rapidly developing market. While Wahaha faced challenges in recent years due to evolving consumer preferences, Mr. Zong leaves behind a legacy as a pioneer in China’s food and beverage industry.
A Complex Legacy: The Danone Dispute and Beyond
Mr. Zong’s international foray involved a complex legal battle with French food giant Danone. In 1996, the two companies formed joint ventures in China, which involved the transfer of the Wahaha brand to entities majority-owned by Danone. However, the partnership ultimately dissolved over control and intellectual property rights, culminating in a decade-long legal saga. In 2009, Danone relinquished its stake to Mr. Zong, solidifying his control over Wahaha and marking a significant victory for the Chinese entrepreneur.
Beyond Business: Championing Traditional Enterprises
Mr. Zong’s influence extended beyond the business realm. As a member of China’s National People’s Congress, he advocated for policies supporting traditional brick-and-mortar businesses facing competition from the e-commerce industry. He championed the “real economy,” characterized by physical stores and manufacturing, over the “internet economy,” due to its perceived impact on job creation and the well-being of small businesses.
A Man of Simple Tastes
Despite amassing significant wealth, Mr. Zong was known for his unpretentious and frugal lifestyle. He prioritized practicality and functionality, leading by example and shunning extravagance. This down-to-earth demeanor resonated with many Chinese consumers who admired his rags-to-riches story and grounded approach to success.
Zong Qinghou’s remarkable journey, from a young man during China’s early years of economic reform to a prominent business leader, leaves an indelible mark on the nation’s economic and social landscape. His legacy as a visionary entrepreneur, who navigated the complexities of China’s dynamic business environment, will continue to inspire future generations.
Image—Wang Zhao/Agence France-Presse — Getty Images
