2024-02-26 13:14:56
The founder of Wahaha, the Chinese food giant, died on February 25 following a long illness. Formerly the greatest fortune in China, the self made man is also known for having chased away its ex-partner, the French Danone.
Published on: 02/26/2024 – 2:14 p.m.
2 mn
With our correspondent in Beijing, Stéphane Lagarde
It is a story that embodies the Chinese dream, underlines the state press on February 26. That of the first entrepreneurs who took the train of reform and opening up under Deng Xiaoping. In 1978, Zong Qinghou became a street vendor. Ten years later, he opened a soda and ice cream stand near a school. A marketing ace, recalls The Paperwho was among the first business leaders from the private sector to be able to buy a state company.
The death of the “first” Chinese entrepreneur. Zong Qinghou died yesterday of lung cancer at the age of 79. The founder of the Wahaha group embodies the figure of the “1st generation entrepreneur” after the opening of the country to red capitalism. ????
???? pic.twitter.com/BmjstOvltF— Stéphane Lagarde (@StephaneLagarde) February 26, 2024
Another big move in his career, this Bernard Tapie of drinks (water, tea, fruit juice, milk drinks) and yogurt managed to end his partnership with a foreign group, reaping all the benefits of the breakup. The separation of Whahaha and Danone has even become a benchmark in terms of risks and what to avoid for investors, in so-called “technology versus market” agreements often imposed on foreign companies wishing to set up in China.
Conflict with Danone
In 2006, ten years after the establishment of the Wahaha joint venture (“the laughing child” in Chinese), Danone attempted to acquire the entire group. Refusal from Mr. Zong who, facing the R&D director and the marketing director of Danone, despite being a 51% shareholder, imposes that the brand and the president remain unchanged, that social benefits are not touched and prohibits the dismissal of employees over 45 years.
The next year, Danone files a complaint against its partner for reselling identical products via other companies, underlines the New York Times, way of siphoning off the joint venture. Zong Qinghou talks lies and swears revenge. He mobilizes Chinese public opinion and the company’s employees, playing the card of the patriotic businessman involved in the strategies to combat poverty and the country’s development.
Nicolas Sarkozy, VRP of the French company Danone
The strategy of opening highly profitable companies in Western China to support ” poor children and their families » would, say Wahaha’s advisors, have been refused by Danone. The Frenchman denounces for his part a non-compliance with the initial joint venture. The conflict is rising at the state level. The dispute is raised during the meeting between the presidents Nicolas Sarkozy and Hu Jintao, until the signing of a “ amicable agreement », According to the Chinese press. In 2009, Danone finally gave up and sold its shares to its ex-partner.
A year later, Forbes named Zong Qinghou the richest man in China.
Also read: China: an economy that is slowing down and worrying
#Death #Zong #Qinghou #entrepreneurs #red #capitalism #China