The plaintiffs, Jacky, Jessie, and Jerry Zong, are seeking an injunction to stop Kelly from managing assets in an HSBC bank account, according to Bloomberg.
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Kelly Zong (Fuli Zong) delivers a speech while attending a forum event in Hangzhou, Zhejiang Province, China, Nov. 24, 2020. Photo by CFOTO/Sipa USA via Reuters |
These assets were transferred to Kelly last year when her father and founder of the beverage empire, Zong Qinghou, passed away at 79.
Known as the “Princess of Wahaha” in China, Kelly, 43, has so far been considered the sole child of Qinghou.
The plaintiffs are engaged in a legal battle in a Hangzhou court to claim rights to trusts – each valued at $700 million – which they assert were promised to them by their late father.
They allege that Qinghou instructed his subordinates to establish trusts for them at HSBC in Hong Kong and later directed assistants to convert yuan into U.S. dollars when the funds were insufficient.
They are demanding that Kelly honor their father’s will, pay millions in interest on their assets, and compensate them for losses resulting from the transfer of their funds.
The plaintiffs’ lawyer stated they are seeking to prevent Kelly from disposing of, dealing with, or reducing the value of the assets in the HSBC account, which held about $1.8 billion as of early 2024.
Kelly’s lawyer countered that she does not accept the evidence and that Qinghou’s instructions were not communicated to her. She also stated she is unaware of the source for converting the yuan.
A judge is reviewing the case and is scheduled to deliver his decision in around two months.
Qinghou, once China’s richest man, founded Wahaha in 1987. The beverage empire began with a milky nutrition drink and later grew to include bottled water, tea, and fruit juices across the country.
The Zong family’s fortune is at least $3.3 billion, according to the Bloomberg Billionaires Index.
Kelly, 43, has been managing a difficult business landscape amid a broader economic slowdown in China, with the company facing growing competition from rivals such as Nongfu Spring Co. and emerging bubble-tea and coffee chains.
Kelly has spent two decades at the firm and became vice chair and general manager in December 2021, according to Fortune.
A graduate of Pepperdine University in the U.S., Zong had been involved in developing marketing strategies to tap younger consumers, including picking a new brand ambassador, working on TV product placement and hiring influencers.
Zong has her own brand of tea drinks, KellyOne, launched via the separate Hongsheng Group beverage and packaging-service business which she has helmed since 2007.
