China Mourns Loss of Self-made Billionaire Founder Zong Qinghou, Dies at 79

Self-made Chairman Zong Qinghou of Wahaha died at 79
Once the wealthiest businessman in China
“A first-generation entrepreneur after China’s reform and opening up”

Zong Qinghou, the founder of China’s largest food and beverage company, Wahaha Group, died at the age of 79 on the 25th, according to China Daily. The memorial service will be held in Xia Sha, Hangzhou, Zhejiang province, on the 28th.

Zong is considered one of the most respected figures among China’s first-generation entrepreneurs who emerged after China began its reform and opening up in 1978. His realistic style and innovative spirit have left a strong impression on the public.

China Daily emphasized that Zong’s self-made story will inspire more Chinese entrepreneurs to focus on the real economy and operate their businesses practically and consistently.

Born in 1945 in Suzhou, Jiangsu province, Zong took over a small grocery store at a school in Hangzhou, Zhejiang province, in 1987 and worked as a children’s soft drinks and ice cream distributor. Then, in 1989, he established the Hangzhou Wahaha Nutritional Foods Factory. Two years later, he acquired a local canning factory on the verge of bankruptcy and launched the Wahaha Group.

In particular, the launch of Wahaha AD Calcium Milk in 1996 gained great popularity among Chinese consumers. However, since 2020, it has been evaluated as being on the decline, overtaken by successful competitors such as Nongfu Spring, which has continuously launched food and beverages tailored to the tastes of the younger generation.

The current Wahaha product brand includes over 200 items, including mineral water, milk and yogurt drinks, carbonated drinks, fruit and vegetable juices, tea, and coffee beverages.

In 2022, the revenue was 51.2 billion yuan (approximately $7.1 billion), and it is one of the top 500 companies in China, with 81 production bases nationwide and 30,000 employees.

Zong, known for his frugal life, was selected as the wealthiest person in China by Forbes in 2010, 2012, and 2013.

He once said, “Without reform and opening up, there would be no Wahaha.” He also emphasized that Chinese entrepreneurs should fulfill their social responsibilities and create wealth for the people. He also mentioned that they should create more employment opportunities and participate in public welfare activities to contribute to the country’s economic and social development.

Zong was a deputy at the 10th, 11th, and 12th National People’s Congress, China’s highest legislative body.

Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University’s International Business School, said, “Zong, representing the first generation of Chinese entrepreneurs after the reform and opening up, has always focused on the real economy and did not get involved in finance or real estate.”

“He grew a small beverage business into a beverage giant,” and “His practical entrepreneurial spirit, patience, and courage in the face of difficulties will serve as a model for the next generation of Chinese entrepreneurs to gradually expand their businesses,” he explained.

While Wahaha has not yet disclosed its next management team, it is speculated that Chairman Zong’s only daughter, Zong Fuli (English name Kelly Zong), appointed vice chairman in December 2021, will succeed the management rights and become the CEO. Zong was known to have expressed complete confidence in Vice Chairman Zong, noting her remarkable management achievements during his lifetime.