Wahaha Joint Venture Company
| Company type | private |
|---|---|
| Industry | Food |
| Founded | 28 March 1996 |
| Defunct | 2009 |
| Successor | Hangzhou Wahaha Group |
| Headquarters | Hangzhou, China |
Area served | China |
Key people | Emmanuel Faber (Chairman) |
| Products | Dairy products, Water, Soft drinks |
| Revenue | €100 million |
| 5% | |
| Parent | Groupe Danone, Hangzhou Wahaha Group |
| Website | wahaha.com.cn |
The Wahaha Joint Venture Company was a food and beverage joint venture company established between the Hangzhou Wahaha Group, the largest beverage producer in China, and Danone, one of the world's largest food conglomerates.
The companies became partners in 1996 in a business model Forbes magazine hailed as a "showcase" joint venture.
As the businesses expanded and became more complex, Danone made several attempts to buy out Wahaha, but was rebuffed. Danone and Wahaha's general manager Zong Qinghou signed a deal in December 2006, allowing Danone to buy a majority stake in the non-JV operations. However, Zong had second thoughts about the deal and reneged, claiming the offer was underpriced. It is alleged that he wanted to squeeze a higher price out of Danone.
In a trademark dispute, Danone filed for arbitration in Stockholm on 9 May 2007. Danone took further legal action by filing a suit in Los Angeles Superior Court against Ever Maple Trading and Hangzhou Hongsheng Beverage Co Ltd on 4 June 2007, companies controlled by Zong's wife and daughter.
On 21 December 2007, Danone and the Chinese partner agreed to suspend their legal battle and resume negotiations. In 2009, Danone Group exited the joint venture by selling their 51% stake to Wahaha Group for an estimated $500 million.