Chinese beverage giant Wahaha is reportedly gradually cutting off distributors with annual sales below 3 million RMB (same below, equivalent to 1.7724 million MYR).
According to Yicai, since Wahaha's chairwoman and general manager Zong Fuli took office, many distributors saw significant increases to their sales targets. The report cites a Wahaha distributor in Hunan as saying the annual sales target has increased from this year, up 50% compared to 2024. This unnamed distributor said that if sales targets are not met within a certain time frame, if there is continuous negative growth, or if configuration thresholds are not met, distributor rights will be directly revoked.
A Wahaha distributor from Yuncheng, Shanxi, also stated that if sales targets are not met for two consecutive months, distributor status may be canceled.
Some distributors have reported that Wahaha's channels are currently undergoing a "major reshuffle," with insufficient freezer allocation becoming a flashpoint.
Wang Xin from Pingxiang City, Jiangxi Province, suddenly had his distributor qualifications revoked this April. He said, "I have worked with Wahaha for 15 years, and last year my sales exceeded 10 million, yet this year I was directly cut off."
Wang Xin said that from 2024, Wahaha began eliminating small distributors with annual sales below 3 million RMB, but he did not expect to be eliminated despite annual sales of ten million. "We received 83 freezers on March 27, but by the company's inspection on April 10, I had only deployed more than 40. How could all 80-plus freezers be deployed in just half a month? In a market like Pingxiang where Coca-Cola, Nongfu Spring, Eastroc Super Drink and others are battling, it's simply impossible."
Yicai reports that having large distributors take over some small ones is one of the models behind this "major reshuffle." This move could be to address issues such as cross-regional shipments or multi-sided debts among some regional distributors, letting a relatively smaller number of powerful large distributors operate in a unified way.
After Wahaha founder Zong Qinghou passed away in February last year, Wahaha's sales soared, buoyed by his patriotic entrepreneur image. Rival beverage giant Nongfu Spring, whose founder Zhong Shanshan's son holds US citizenship, became embroiled in public controversy and saw its market value shrink by 20 billion RMB at one point.
However, in July this year, after Wahaha became mired in an inheritance dispute, Nongfu Spring's stock price surged, even reaching its highest level in 42 months.
According to Yicai, since Wahaha's chairwoman and general manager Zong Fuli took office, many distributors saw significant increases to their sales targets. The report cites a Wahaha distributor in Hunan as saying the annual sales target has increased from this year, up 50% compared to 2024. This unnamed distributor said that if sales targets are not met within a certain time frame, if there is continuous negative growth, or if configuration thresholds are not met, distributor rights will be directly revoked.
A Wahaha distributor from Yuncheng, Shanxi, also stated that if sales targets are not met for two consecutive months, distributor status may be canceled.
Some distributors have reported that Wahaha's channels are currently undergoing a "major reshuffle," with insufficient freezer allocation becoming a flashpoint.
Wang Xin from Pingxiang City, Jiangxi Province, suddenly had his distributor qualifications revoked this April. He said, "I have worked with Wahaha for 15 years, and last year my sales exceeded 10 million, yet this year I was directly cut off."
Wang Xin said that from 2024, Wahaha began eliminating small distributors with annual sales below 3 million RMB, but he did not expect to be eliminated despite annual sales of ten million. "We received 83 freezers on March 27, but by the company's inspection on April 10, I had only deployed more than 40. How could all 80-plus freezers be deployed in just half a month? In a market like Pingxiang where Coca-Cola, Nongfu Spring, Eastroc Super Drink and others are battling, it's simply impossible."
Yicai reports that having large distributors take over some small ones is one of the models behind this "major reshuffle." This move could be to address issues such as cross-regional shipments or multi-sided debts among some regional distributors, letting a relatively smaller number of powerful large distributors operate in a unified way.
After Wahaha founder Zong Qinghou passed away in February last year, Wahaha's sales soared, buoyed by his patriotic entrepreneur image. Rival beverage giant Nongfu Spring, whose founder Zhong Shanshan's son holds US citizenship, became embroiled in public controversy and saw its market value shrink by 20 billion RMB at one point.
However, in July this year, after Wahaha became mired in an inheritance dispute, Nongfu Spring's stock price surged, even reaching its highest level in 42 months.