Watch Out, Coke and Pepsi – Here Comes Wahaha

Wahaha, whose main products are milk drinks, bottled water and mixed congee, is the number one beverage company in China, with revenues of 11.4 billion yuan ($1.37 billion) and profits of 1.35 billion yuan ($162.7 million) in 2004. The company was started in 1987 by Zong Qinghou, its 60-year-old chairman and CEO. In an interview with Wharton marketing professor John Zhang, Zong talks about his first entrepreneurial ventures selling beverages and ice cream, the success of his first major product, “Wahaha nutritional liquid,” his joint venture with the French giant Danone Group, and his rapid growth over the past eight years through the establishment of 40 subsidiaries in 16 Chinese provinces. In 1998, Wahaha launched its own brand, “Future Cola,” to compete against Coke and Pepsi.