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Wahaha is reportedly suspending 70% of its production lines, and AD Calcium Milk and Nutritional Fast Line are also urgently halted.
Ask AI · How do the management differences between Zong Fuli and Zong Qinghou affect Wahaha operations?
On March 27, according to Caixin, multiple sources said that on March 26, Hongsheng Group notified several of its factories to shut down for one week. One source said that, apart from the factory producing Red Wahaha bottled water, almost all other factories were shut down, including branch facilities nationwide (even) those producing AD calcium milk and Nutrition Express. Another source said that production was expected to resume after April 2. Other media also reported that the shutdown capacity accounted for around 70%.
According to Southern Metropolis Daily, multiple sources said that the reason for this shutdown might be to help the market absorb excess inventory. Others speculate that the real reason for the shutdown could be that the equity of the Wahaha Group will change.
Also, according to Daily Economic News, people close to Wahaha revealed that it may be because Zong Fuli’s management style is indeed different from Zong Qinghou’s. Previously, Zong Qinghou did not adjust inventory using this kind of approach, but this time the adjustment definitely was not a work stoppage or shutdown; it was a normal scheduling adjustment.