Wahaha Hongsheng Factory Ceases Large-Scale Production: Involving 70% of Production Lines | Company Public Opinion Watch

After last year’s brand dispute, the production operations within the Wahaha system have stirred again. On the evening of March 26, news of a large-scale shutdown of production at Wahaha and Hongsheng factories spread within the industry, raising widespread concerns about the supply chain stability of this beverage giant.

Verbal Notification Issued Late at Night, Production Hits the “Pause Button”

An insider close to Wahaha revealed that on the evening of March 26, the company issued a temporary verbal notice to halt 70% of its factory production lines. This adjustment has a wide-ranging impact, affecting multiple factories of both Wahaha and Hongsheng.

As a result, factory shipments, aside from necessary orders, have been suspended. Some factory employees have received vacation notices, and according to informed sources, the recovery time for this production halt is expected around April 2. Regarding this sudden shutdown, another individual close to Wahaha explained that it is related to “production scheduling.”

Deep Adjustment or Short-Term Fluctuation?

This large-scale shutdown is not an isolated incident but rather a continuation of the deep adjustments to Wahaha’s production and sales system in recent years.

Since Zong Fuli took full control of Wahaha and Hongsheng Group, a series of reform measures she has implemented have been reshaping the landscape of this established beverage enterprise.

In fact, similar factory adjustments had already shown signs. According to previous media reports, since 2024, Wahaha Group has shut down at least 18 production lines of non-“Hongsheng” factories, located in places such as Shenzhen, Chongqing, Tianjin, Xianyang in Shaanxi, Quzhou in Zhejiang, and Ji’an in Jiangxi. Wahaha’s official response at the time stated that this was to “enhance the responsiveness of the terminal market,” necessitating adjustments to optimize the production and sales layout.

While shutting down some non-core factories, the Hongsheng Group controlled by Zong Fuli has been expanding against the trend. It is reported that Hongsheng Group has invested in constructing 18 high-speed production lines in Tianjin, Chengdu, and Xi’an, creating a scenario of “Wahaha closing factories, Hongsheng expanding production.” As Zong Fuli’s “independent kingdom,” Hongsheng Group now possesses a massive production network with an annual capacity exceeding 480 million boxes and has invested in the “Hongsheng Superlink Intelligent Manufacturing” project, attempting to establish a more efficient supply chain system.

Internal and External Challenges Intertwined, Zong Fuli Faces Multiple Pressures

This production halt comes at a critical time for Zong Fuli as she navigates internal management and external market challenges. In 2025 alone, Zong Fuli experienced several reversals, including resigning from Wahaha Group, launching the new brand “Wawaixiong,” and then reusing the “Wahaha” brand due to resistance from distributors.

At the same time, Zong Fuli is also focusing on business consolidation. Just this month, Hangzhou Wahaha Precision Machinery Co., Ltd. announced its dissolution and entered liquidation, having previously undertaken research and development of robots and smart equipment manufacturing. This move has been interpreted by the outside world as Zong Fuli’s intention to divest non-core businesses, strategically focusing resources on the food and beverage main business.

Despite the official attribution of this production halt to “production scheduling,” against the backdrop of recent trademark disputes, tense distributor relationships, and internal business adjustments, the large-scale shutdown of Wahaha and Hongsheng undoubtedly intensifies market concerns about its future direction. As of the time of publication, Wahaha’s official statement regarding this shutdown incident has not been released.

Southern+ Reporter Huang Xiaoyun

Author Huang Xiaoyun

Source Southern Media Group Southern+ Client