Zong Qinghou

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Zong Qinghou (宗慶後), born 1945, is a Chinese entrepreneur, founder, Chairman and CEO of the Hangzhou Wahaha Group, the leading beverage company in China[1]. Ranked China’s 23rd-richest man[2] and 840th in the world[3] by Forbes, Hurun Report estimated him to have personal wealth of US$1 billion in 2006[4].

Zong is a delegate to the Chinese National People's Congress.

[edit] Biography

Zong is a native of Zhejiang, and has had little formal education. After graduating from secondary school, Zong worked at the Zhoushan salt farm. He returned home in 1979 on the retirement of his mother, who was a teacher[5]. He eventually returned to Hangzhou, and only found menial work at a local school due to the low level of his education. In 1987, he targeted a minigrocery in a school in Shangcheng district[5],Hangzhou, selling milk. Zong headed the embryonic Wahaha business, which distributed fizzy soft drinks, ice and stationery[5]. Together with two retired schoolteachers, he borrowed the sum of CNY 140,000, to start producing milk drinks for distribution.

He obtained independence from an early government partner by stressing his links with Danone[6]. With his autocratic style[6] and workaholic ethic, he built Wahaha into the largest beverage manufacturer in the People's Republic of China[4].

The joint venture WHH entered into with Groupe Danone, involved the inward investment of US$70 million in five WHH companies[1]in exchange for 51% Groupe DANONE ownership in each company. The trademark agreement signed on 29, 1996 gave the JVs the exclusive rights of production, distribution and sales of products under the Wahaha brand[7]. Collaboration has grown into 39 joint venture entities by 2007[4].

In 2007, the relationship had started to turn sour when Danone attempted to gain control of the company. Zong, who had been left to manage the business without any intervention from Danone, resigned as Chairman of the joint ventures on June 5, 2007[8].

[edit] Personal

His wife is Shi Youzhen (施幼珍), and his daughter is Zong Fuli (宗馥莉). Shi is the Purchasing Manager at Wahaha[6].

[edit] References

  1. ^ a b "Danone set to sue Wahaha over breach of contract", South China Morning Post, April 11, 2007, p. B3. 
  2. ^ Vivian Wai-yin Kwok, Danone's Chinese Food Fight Gets Messier, Forbes, June 14, 2007, Accessed 2007-06-21
  3. ^ Zong Qinghou, The World's Billionaires, Forbes, Accessed 2007-06-21
  4. ^ a b c "Danone and Wahaha vie for the last laugh", South China Morning Post, June 11, 2007, p. B3. 
  5. ^ a b c “娃哈哈”的新童話(轉載自証券日報) People's Daily, (Chinese)
  6. ^ a b c Russell Flannery, How To Lose In China, Forbes, June 18, 2007, Accessed 2007-06-21
  7. ^ Danone Group (April 10, 2007). ""Groupe DANONE confirms being in negotiations with its Chinese partner in beverages, Mr. Zong"". Press release.
  8. ^ Danone Group (June 12, 2007). ""current developments regarding Wahaha dispute"". Press release.
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