Billionaire founder of beverage giant dies at 79
Zong Qinghou's death evokes memories of a long-gone era
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Zong Qinghou, a self-made entrepreneur and founder of China’s largest beverage company, died on Sunday.
His death was announced by his company, Wahaha Group:
Comrade Zong Qinghou, founder and chairman of Wahaha Group, passed away at 10:30 on February 25, 2024 due to illness at the age of 79.
娃哈哈集团创始人、董事长宗庆后同志，因病医治无效，于2024年2月25日10时30分逝世，享年79岁
Born into poverty in 1945, his rags to riches story tracks China's remarkable changes through the reform era.
Zong began selling popsicles on a three-wheeler in Hangzhou in the 1970’s.
Selling drinks to school kids in the 1980's, Zong saw how undernourished students were. He saw an opportunity and a solution to that problem: nutritional drinks for kids.
In 1987, he founded Wahaha Group (娃哈哈集团) at the age of 42, at a time when China’s economy had just begun to open up and allow private enterprise. The name of the business roughly translates as "children” (娃 wá) “laughing" (哈哈 hāhā).
He launched his first product in 1988, Children's Nutrient Solution (儿童营养液), which became an iconic brand.
Wahaha grew into China’s largest drinks company, and Zong was named China’s richest man in 2008, and again in 2012.
His battle with Danone in 2007 over a trademark dispute put Zong in China’s entrepreneurial hall of fame. It ended with the French food giant exiting the China market, and selling its 51% stake in the Danone-Wahaha joint venture, founded in the 1990's, back to Zong.
The “Danone - Wahaha battle” (达娃之争) is seen as one of the great early wins of Chinese business against a much stronger international competitor.
The news of Zong's death led to tributes flooding social media feeds, with comments like:
A true entrepreneur, and not an opportunistic businessman (一位真正的企业家，而不是投机的商人)
The first generation of entrepreneurs after China opened up. The end of an era (改革开放后的第一代民营企业家，一个时代落幕 )
Zong was running his business right to the very end, still involved in Wahaha company operations. In his final days, as he lay on his hospital bed on oxygen, Zong discussed company operations with his colleagues, with printers next to his bed, and piles of documents ready for discussion.
Visitors asked him why he didn't task someone else to do it. Zong said, "The company is like my own child. And as the parent, I always worry about its future."
探望他的人问他，为什么不安排其他人代劳，宗庆后说，公司如同自己的小孩一样，放心不下。[1]
Zong is described as simple (朴素), and low-key (低调) in the media. Often seen in all-black outfits and cheap shoes, he was dubbed the "Billionaire in canvas shoes" (布鞋首富).
Zong Qinghou was an advocate for being frugal. He wore canvas shoes, flew economy class, and didn't play golf. After quitting smoking, his annual living expenses were no more than 50,000 yuan.
宗庆后还崇尚节俭，穿布鞋，坐经济舱，不打高尔夫，戒烟后的生活开销每年不过五万元。 [4]
The role of Zong and Wahaha in China's opening up cannot be underestimated. He’s referred to as a “Zhang Qian-style entrepreneur” (张骞式的企业家).
Zhāng Qiān 张骞 was an explorer, politician, and imperial envoy during the Western Han dynasty (2nd century BC), revered for his role in opening China to trade and global alliances at that time.
Like Zhang Qian two millennia ago, Zong Qinghou was at the forefront of the country’s market reforms and growing private sector.
So now that Zong Qinghou has passed, what will happen to his drinks empire?
He’s been planning for this for some time:
Zong Qinghou made plans early. His daughter, Zong Fuli (Kelly Zong), returned to China after her graduation in 2004. She single-handedly founded Hongsheng Beverage Group, and in 2018 became the Director of Public Relations at Wahaha. She currently serves as the Vice Chairman and General Manager of the Wahaha Group.
宗庆后对此进行了较早的谋划，其女宗馥莉2004年毕业归国，一手创办宏胜饮料集团，2018年出任娃哈哈公关部部长，目前担任娃哈哈集团副董事长兼总经理。[2]
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Favourite Five
1. 蹚路 tāng lù
to explore uncharted territory
在市场大局中找准定位和优势，才能奋力在高质量发展上蹚出一条新路来 - To find a new path in high-quality development, one must define its position and advantages in the market. [2]
2. 摸爬滚打 mō pá gǔn dǎ
overcoming difficulties through hard work and perseverance
那是他在几十年摸爬滚打中学会的 - That's what he learned during decades of crawling, rolling, and tumbling [figuratively: overcoming difficulties through hard work and perseverance]. [1]
3. 白手起家 bái shǒu qǐ jiā
to build from nothing
这位42岁白手起家，三次问鼎中国首富的企业家劳模 - He started from scratch at 42 and became a star entrepreneur who was crowned China's richest person three times. [1]
4. 一代宗师 yí dài zōng shī
grandmaster, master of the generation
一代“宗”师在最后时刻 - The grandmaster of the generation in his final moment. [1]
More: This is clever pun in our Phrase of the Week which we’ll be discussing more in Sinica tomorrow.
5. 路虽远，行则将至 lù suī yuǎn, xíng zé jiāng zhì
the road may be long, but with each step, you are approaching the end
路虽远，行则将至；事虽难，做则必成 - The road may be long, but with each step, you are approaching the destination; the task may be difficult, but with hard work, you will get it done. [4]
More: The whole sentence is a quote from philosopher, Xún Zǐ 荀子, a Confucian philosopher during the Warring States period.
Consuming the Conversation
Useful words
6. 缔造 dì zào
create
更幸运的是，我获得了一个机会，缔造了一家公司 - Even more fortunately, I seized an opportunity to establish a company. [1]
7.下乡 xià xiāng
to go to the countryside for rural work or education
宗庆后生于1945年，初中毕业就下乡，在农村一待就是15年 - Born in 1945, Zong Qinghou went to the countryside after middle school, and stayed there for 15 years. [1]
8. 登顶 dēng dǐng
to reach the summit, to climb to the top
宗庆后也以116亿美元的身价登顶福布斯2013年华人富豪榜 - Zong Qinghou also topped the Forbes 2013 Chinese Rich List with a fortune of 11.6 billion US dollars. [4]
Related:
问鼎 wèn dǐng - to vie for the title of, to aspire to
9. 接班 jiē bān
to take over
随着宗庆后逝世，“接班”成为宗馥莉必须面对的课题 - After the death of Zong Qinghou, taking over the business is the challenge which his daughter, Kelly Zong, needs to rise up to. [1]
Three character phrases
10. 人情味 rén qíng wèi
human touch, warmth of human feelings
宗庆后人情味很浓 - Zong Qinghou has a strong human touch. [1]
11. 大锅饭 dà guō fàn
a system where resources are shared equally regardless of individual contribution
光是“家文化”，也会造成“大锅饭” - If we only follow the corporate culture of being like a “family", people might become unmotivated. [1]
Note: 家文化 is the corporate culture of Wahaha, where 家 refers to "小家" (family)，"大家" (Wahaha group) and "国家" (nation).
More: A pre-reform era phrase which Zoe explains more about in the member podcast.
12. 家长式 jiā zhǎng shì
paternalistic, patriarchal
对于企业内部，宗庆后则一直秉持“大家长式”的管理方式 - Within the company, Zong Qinghou has always adhered to a paternalistic management style. [4]
Idioms
13. 滴水穿石 dī shuǐ chuān shí
dripping water wears away a stone, perseverance leads to success
只要有愚公移山的志气、滴水穿石的毅力，就一定能把目标变为美好现实 - With the determination of the old man moving mountains and the perseverance of dripping water wearing a stone, you will be able to achieve your goals. [4]
Related:
自强不息 zì qiáng bù xī - constantly strive for self-improvement
永不之倦 yǒng bù zhī juàn - never tired of, never get weary
14. 筚路蓝缕 bì lù lán lǚ
build something step by step with great effort
他一路走来，筚路蓝缕的中国饮料创业史 - His entrepreneurship reflects the painstaking history of China's beverage industry. [1]
More: Part of a longer eight-character idiom: 筚路蓝缕，以启山林.
15. 雷打不动 léi dǎ bú dòng
unwavering, stable or consistent
中午休息一小时，直到夜幕降临才下班，雷打不动 - He would always take a one-hour break at noon and work until nightfall. [1]
16. 定海神针 dìng hǎi shén zhēn
the person who have control over a situation; the central figure
宗庆后是集团的“定海神针”，亲自管理大小事务 - Zong Qinghou is the central figure of the group, personally managing all matters big and small. [1]
Background: 定海神针 is the magic staff wielded by Sun Wukong 孙悟空 in Journey to the West 西游记
17. 风风雨雨 fēng fēng yǔ yǔ
ups and downs, trials and tribulations
这像是宗庆后对自己70多年来风风雨雨的人生总结 - This seems to be Zong Qinghou's summary of his ups and downs over the past 70 years. [2]
18. 毁誉参半 huǐ yù cān bàn
mixed reviews, both praise and criticism
尽管在多元化业务上并不顺利，甚至让宗庆后“毁誉参半”，但他始终未放弃探索与尝试 - Despite the difficulties in diversifying the business, which even brought Zong Qinghou mixed reviews, he never gave up exploring and experimenting with new ideas. [4]
19. 只争朝夕 zhǐ zhēng zhāo xī
seize every moment
我还有“只争朝夕”的精神 - Have the spirit of seizing every moment. [2]
Background: From famous Mao poem, With Comrade Guo Moruo (满江红·和郭沫若同志).
Phrases
20. 姓资姓社 xìng zī xìng shè
to have a capitalist or socialist orientation
彼时，社会上仍有很多“姓资姓社”的讨论 - At that time, there were still many public objections to the capitalist leaning of a company. [4]
More: A phrase which dates back to the early 1990’s when there were tensions between reformers and conservatives within the party about the extent of market reforms.
21. 毛细血管 máo xì xuè guǎn
capillary, tiny blood vessel
这个品牌是较早打通下沉市场“毛细血管”的企业之一 - This brand is one of the enterprises that penetrated the market of small cities relatively early on. [4]
Note: Meaning to penetrate deeply into markets
22. 小鱼吃大鱼 xiǎo yú chī dà yú
small fish eat big fish (idiom: smaller entities overpowering larger ones, often in business)
在多次企业家论坛上，宗庆后都谈到过这场“小鱼吃大鱼”的并购 - At many entrepreneur forums, Zong Qinghou talked about this "small fish eat big fish" acquisition. [4]
More: A reversal of the phrase, “a big fish eats a small fish” (大鱼吃小鱼)
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