---
title: "Nongfu Spring Founder Exposed: Feud with Zong Qinghou Could Be a Movie"
description: "Nongfu Spring and Yangshengtang remain a hidden corner of the wealth circle, with no listings or financial disclosures, and their controller Zhong Shanshan never appearing on any rich list. His life has seen three turns—from mason to journalist to businessman—and his brands, built on unique concepts and event marketing, have faced repeated quality crises tied to those concepts."
author: "New Distribution"
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published: "2015-06-25"
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# Nongfu Spring Founder Exposed: Feud with Zong Qinghou Could Be a Movie

> Nongfu Spring and Yangshengtang remain a hidden corner of the wealth circle, with no listings or financial disclosures, and their controller Zhong Shanshan never appearing on any rich list. His life has seen three turns—from mason to journalist to businessman—and his brands, built on unique concepts and event marketing, have faced repeated quality crises tied to those concepts.

Nongfu Spring and Yangshengtang remain a hidden corner of the wealth circle.
Neither company is listed, nor have they disclosed financial statements; the actual controller, Zhong Shanshan, has never appeared on any version of the rich list.
Often, low profile is just camouflage on a giant crocodile.
**Zhong Shanshan's Three Turns**
Zhong Shanshan's life has experienced three turns: mason, journalist, businessman.
Born in 1954, Zhong Shanshan's family was originally a scholarly family settled in Hangzhou. But when he reached the fifth grade of elementary school, Zhong was forced to drop out. During the Cultural Revolution, his parents were labeled as rightists and sent back from Hangzhou to their hometown—Zhuji, Shaoxing. This also affected Zhong Shanshan's education.
After dropping out, it was an absolutely bleak period. From the late 1960s to 1977, Zhong moved between Jiaxing and Shaoxing, learning to be a mason and carpenter. His family, except during festivals, almost never visited others' homes in Zhuji.
In 1977, when the college entrance examination was restored, Zhong suddenly announced he would take it with his sister, and persisted for two years, but each time fell short by more than 20 points.
The first turning point in Zhong's life was the end of the Cultural Revolution.
As elders in his family entered the Zhejiang Radio and Television system, the Zhong family moved back to Hangzhou from Zhuji. Zhong's life experienced its first leap: first managing infrastructure at the Zhejiang Provincial Federation of Literary and Art Circles, then going to the Jiangnan Magazine and Zhejiang Daily.
Zhong spent five years at Zhejiang Daily. To this day, he still claims to have a 'Zhejiang Daily complex.'
His journalism career not only broadened his horizons but also accumulated many resources, and even his later business partners were met during early interviews.
In early 1988, the state officially approved the establishment of the Hainan Special Economic Zone, triggering a wave of gold rush in Hainan. Many well-known billionaires on today's wealth lists were gold diggers back then.
That same year, Zhong resigned from Zhejiang Daily and headed to Hainan, beginning his journey as a businessman.
**The Boss Who Can 'Give Birth' the Most**
Zhong's initial dream was to establish China's first private newspaper in Hainan, but even in the newly established special economic zone, newspaper publication numbers remained a forbidden area for private individuals.
Therefore, growing mushrooms became Zhong's earliest entrepreneurial project in Hainan, thanks to the connections he had built in the newspaper's rural department. But soon, this project drained all of Zhong's investment. Because Hainan is humid in the morning and evening, but especially dry at noon, 'the tender tips of the mushrooms just sprouted, and dried up in one noon.' The planted mushrooms simply couldn't survive.
After the mushroom failure, Zhong tried other businesses; some say he started in Hainan by selling curtains.
In 1991, Zhong had established a foothold in Hainan, becoming the general agent for Wahaha in Guangxi and Hainan.
What truly made Zhong soar was the later famous 'Yangshengtang Turtle and Soft-Shelled Turtle Pills.'
Zhong discovered that in Hainan, it was popular to drink a nourishing soup made from turtle and soft-shelled turtle, local specialties. This soup combined deliciousness and nourishment, becoming a dining trend. This trend inspired Zhong's product idea.
In October 1993, Hainan Yangshengtang Pharmaceutical Co., Ltd. (referred to as Hainan Yangshengtang) was established in Haikou. Hainan Yangshengtang launched 'Yangshengtang Turtle and Soft-Shelled Turtle Pills,' 'made from natural turtle and soft-shelled turtle, formulated according to traditional Chinese medicine theory, using modern ultra-low temperature freezing technology to make the whole turtle and soft-shelled turtle crisp into micro-powder at minus 196 degrees Celsius.'
Once launched, the product received a good market response, allowing Hainan Yangshengtang to carve a place among the many health product brands that rose in the 1990s, and also brought Zhong his true first pot of gold.
Over the next 20 years, Yangshengtang successively launched more than ten brands and products, including 'Nongfu Spring,' 'Duo'er,' 'Qingzui,' 'Mother's Beef Sticks,' and 'Growth Happiness.'
It's hard to imagine that many of the brands and marketing ideas, including 'Yangshengtang' and 'Nongfu Spring,' were all created by Zhong Shanshan alone. Planner Li Guangdong once commented on CCTV's 'Dialogue' program: 'Zhong Shanshan is the boss among Chinese entrepreneurs who can 'give birth' the most.'
Brands inherently contain power. In the pre-Qin era, among the Hundred Schools of Thought, there was a 'School of Names' that emphasized the study of 'names,' focusing on 'the name matching the reality,' and studying the power of 'names.'
It cannot be denied that every brand Zhong created has its own power, often setting aside product attribute constraints and seeking consumer resonance through unique emotional and conceptual planning. He has considerable talent in the study of 'names.'
**Unique Event Marketing**
Zhong summarized his business experience, once saying: 'For a small enterprise to develop and grow, the types of products it operates must be unique and highly profitable, because there is no scale effect to allow slow accumulation.'
This statement also represents Zhong's consistent product design and marketing style. Represented by 'Yangshengtang Turtle and Soft-Shelled Turtle Pills,' many of Yangshengtang's brands and foods have unique conceptual entry points in marketing. Because they are unique, they can refresh users and quickly carve out market space.
For example, 'Mother's Brand Original Beef Sticks,' behind the warm brand, there is a story full of exotic flavor: 'In the early 20th century, in the southern United States, in a small town called Pampa, 12-year-old Jamie had to go to boarding school 9 miles away every week. His loving mother worried about his nutrition at school. Every week when Jamie came home, she would bake a large amount of beef for him to take to school, enough to last a week. Through continuous practice, she selected the best beef, added black pepper and other seasonings, after mixing and air-drying, then carefully baked over cherry wood branches... Such beef was firm and chewy, rich and delicious. This beef made Jamie the most popular student in the school, and the children called it 'Mother's Beef.'
Unique conceptual entry points are usually combined with Zhong's favorite 'event marketing' to achieve maximum eyeball effect.
Around 2003, the domestic vitamin market had begun to take shape, with strong brands like 21 Jinweita, Centrum, and Theragran. Yangshengtang seized the opportunity to launch adult vitamins and children's vitamins.
When the adult vitamins were launched, the SARS virus was beginning to spread. Yangshengtang temporarily canceled all terminal activities and began intense 'SARS marketing':
First, paying tribute to medical staff, donating 5 million yuan worth of vitamin products to medical staff in severely affected areas.
Yangshengtang's 5 million yuan vitamin products were claimed to be the first health product donation received by the Ministry of Health during the SARS period. Many media outlets published reports like 'Let the frontline medical staff and their families become safe individuals first, Yangshengtang takes the lead in donating 5 million yuan of vitamins to the Ministry of Health.' Corresponding to these reports, Yangshengtang's advertisements for 'supplement vitamins, boost immunity' also bombarded major television media during the same period.
Despite the 'event marketing' of adult vitamins combining favorable timing, location, and people, Yangshengtang still failed to break into the first tier of the vitamin market. Surviving but not growing is the state of most brands under Yangshengtang.
What can serve as the financial pillar of the Yangshengtang system, besides 'Yangshengtang Turtle and Soft-Shelled Turtle Pills,' is only 'Nongfu Spring' drinking water. Barely ranking in the top four in its segment is the 'Scream' series of functional drinks.
**A Hundred-Billion Yangshengtang**
How big is the business map of Nongfu Spring-Yangshengtang?
An internal document obtained by 21st Century Net shows that in 2010, Nongfu Spring's sales of bottled drinking water were 2.82 billion yuan, surpassing Wahaha to take second place in China's bottled water market with a 17.5% share, second only to Master Kong.
Data released by consulting firm AC Nielsen shows that in 2012, the ranking of China's bottled drinking water was Master Kong 22.6%, Nongfu Spring 21.8%, and C'estbon 8.5%. Based on the annual growth rate of 8% in the bottled water market, in 2012, Nongfu Spring's bottled water sales would be close to 4 billion yuan.
But drinking water is not all of Nongfu Spring.
The latest information shows that Nongfu Spring Co., Ltd. was established in September 1996 with a registered capital of 360 million yuan, producing and operating four major series of dozens of products: drinking water, fruit and vegetable juice drinks, functional drinks, and tea drinks. In addition to Nongfu Spring bottled and barreled water ranking high in market share in the drinking water field, the 'Nongfu Orchard' series in the fruit and vegetable juice field and the 'Scream' series in functional drinks also hold a certain market share in their respective fields.
Nongfu Spring Co., Ltd. is just one corner of Zhong Shanshan's 'Yangshengtang system.'
Public information shows that the Yangshengtang system includes: Hainan Yangshengtang Pharmaceutical Co., Ltd., Hainan Yangshengtang Health Products Co., Ltd., Zhejiang Yangshengtang Natural Medicine Research Institute Co., Ltd., and Hainan Yangshengtang Drug Research Center Co., Ltd.; it holds a controlling stake in Nongfu Spring Co., Ltd.; acquired Beijing Wantai Biological Pharmacy Co., Ltd.; registered and established Xinchuang Biotechnology Co., Ltd. in Binjiang District, Hangzhou; in addition, it has subsidiaries for food, material supply, advertising, and a branch in the United States.
Under his Yangshengtang system, Zhong built three marketing systems: pharmaceuticals and health products, beverages and drinking water, and leisure foods, each with a flagship brand. Besides 'Nongfu Spring,' 'Yangshengtang Turtle and Soft-Shelled Turtle Pills,' 'Duo'er,' 'Qingzui,' 'Growth Happiness,' and 'Mother's Brand Beef Sticks' all lead in their respective segments.
Based on Nongfu Spring's bottled water sales data, 21st Century Net conservatively estimates that the Yangshengtang system, including Nongfu Spring, exceeded 10 billion yuan in sales in 2012.
(In fact, according to the 'Analysis Report on the Operation of China's Beverage Industry in the First Three Quarters of 2012' released by the China Industry Information Center (CIIIC) under the National Bureau of Statistics, Nongfu Spring's sales revenue from the drinking water business alone exceeded 10 billion yuan, but this report is for reference only, and there is no latest financial data from Nongfu Spring to support it.)
**Twenty Years of 'Water War' Grievances and Feuds**
Zhong's cultivation of the drinking water market predates his involvement in the health products industry. For twenty years, his grievances and feuds with Wahaha, the leader in the domestic beverage industry, and its founder Zong Qinghou, have never faded, enough to make a movie.
In 1990, after three years of entrepreneurship by Zong Qinghou, Wahaha had grown from a school-run enterprise distribution department in Hangzhou into a large enterprise with output value exceeding 100 million yuan. In 1991, Wahaha merged Hangzhou Canned Food Factory, one of the backbone enterprises in national canned food production, and established Hangzhou Wahaha Group Company.
That year, Zhong Shanshan was the general agent for Wahaha oral liquid in Hainan and Guangxi provinces. Perhaps because they were both Zhejiang merchants, the two had early contact.
Also in 1991, there was a dispute between the two.
Because Hainan was a newly developed special economic zone, Wahaha offered preferential prices to agents; on the other hand, Wahaha oral liquid was selling well in Guangdong at the time.
So Zhong Shanshan took the Wahaha oral liquid he had obtained at low prices in Hainan and sold it at high prices in Zhanjiang, Guangdong, which was neither Hainan nor Guangxi. Because of this, he had a falling out with Zong Qinghou.
As a businessman, the above profit-seeking tactics may not be right or wrong, but in Zhong's eyes at the time, the beverage industry had perhaps become a battleground in his career map.
While Wahaha continued to maintain its leading advantage in the domestic beverage market, Zhong also used the first pot of gold he earned in the health products industry to re-enter the beverage industry.
In September 1996, Zhejiang Qiandao Lake Yangshengtang Drinking Water Co., Ltd. was established in Hangzhou. With careful water source layout and event marketing, the slogan 'Nongfu Spring is a little sweet' resounded across the country.
In 2001, Zhejiang Qiandao Lake Yangshengtang Drinking Water Co., Ltd. was renamed 'Nongfu Spring Co., Ltd.' In 2003, Nongfu Spring launched the 'Nongfu Orchard' series of mixed fruit juice drinks, and 'Shake before drinking' became a temporary advertising highlight. In 2004, it launched the 'Scream' series of functional drinks, whose innovative bottle cap design and good taste gave 'Scream' a place in the functional drink market. In 2008, Nongfu Spring launched 'Water-soluble C100' lemon juice drink.
Twenty years later, in terms of product lines, Nongfu Spring has engaged in comprehensive competition with Wahaha in drinking water, juice, functional drinks, tea drinks, and other beverage segments.
But facing Wahaha's annual turnover of 55 billion yuan in the food and beverage industry chain (2010 data), Nongfu Spring's revenue of over 10 billion yuan is still far behind.
Only in the drinking water field, which Zhong personally oversees, after multiple 'water wars,' event marketing, and promotional battles, by the end of 2010, Nongfu Spring's market share had surpassed Wahaha, chasing the industry leader Master Kong.
In the twenty-year history of the 'water war,' behind the tit-for-tat main theme between Nongfu Spring and Wahaha, there are occasional moments of strange mutual appreciation between Zhong and Zong: Zhong has always admired Zong, and when Nongfu Spring faced the 'arsenic crisis,' Zong publicly voiced support.
The grievances and feuds between the two water giants spanning twenty years are hard for outsiders to fully understand.
**The PR Maze Behind the 'Water Quality Gate'**
In 2013, Nongfu Spring successively encountered the 'Water Quality Gate,' which soon became the 'Water Source Gate.' This was followed by a bizarre 'water war.'
On March 8, 2013, a Beijing consumer, Ms. Li, sent a box of unopened Nongfu Spring 380ml natural water to 21st Century Net. In all 24 bottles, black suspended matter could be seen to varying degrees. The water was produced by Nongfu Spring's Hubei Danjiangkou Co., Ltd.
Subsequently, Economic Voice's 'Daily 315' reported that a consumer in Ningxia, Mr. Wang, also found brown-red floating matter in a 550ml bottle of Nongfu Spring purchased on March 11. According to the report, the dealer of this water had stocked it from the factory in Danjiangkou, Hubei.
21st Century Net then sent investigative reporters to the Nongfu Spring Danjiangkou water source, and comprehensively displayed the garbage-strewn scene around the Hujialing factory area in Danjiangkou with photos and text.
After the problem was exposed, the market focus shifted strangely:
Nongfu Spring's spokesperson quickly characterized 21st Century Net's investigation and photos as malicious reporting, while stating that this negative outbreak was a carefully planned negative PR event.
Nongfu Spring's competitor, C'estbon, made a misstep.
During the sensitive period from March 22 to April 9, C'estbon conducted a series of promotions on the theme of water pollution and water source protection. It cannot be ruled out that C'estbon was using this 'Water Quality Gate' for event marketing.
In fact, since 2000, several giants in the drinking water industry have formed a competitive tradition of tit-for-tat, leaving no room for opponents: event marketing aimed at opponents is usually chosen at the most sensitive time and place for the opponent, and Nongfu Spring and Zhong Shanshan are definitely the initiators of this competitive tradition—on June 8, 2000, Wahaha held a press conference at the Xihu State Guesthouse during the day, and Nongfu Spring deliberately chose the same evening, in the same venue, to hold another press conference.
This time, C'estbon's untimely event marketing was seized by Zhong as a ladder to shift the topic and step down: on April 11, Nongfu Spring issued a statement saying: 'We have reason to believe that the recent series of reports against Nongfu Spring are deliberately planned, and the hidden force behind them is the state-controlled water company—C'estbon.'
Conspiracy theories and assertions against competitors cannot completely divert market attention.
After the incident, media discussions on the drinking water industry chain and even water standards gave Zhong another ladder to divert attention: Nongfu Spring is not only the founder of 'natural water' but also the only drinking water production enterprise that participated in drafting the 'Zhejiang Standard for Natural Drinking Water.' When it comes to discussing 'natural water' standards, few can match Zhong.
From April 8 to May 8, the market discussed Nongfu Spring's water standards for a full month without reaching any conclusion. With the help of the water standard debate, the focus of the entire discussion completely shifted away from the 'Water Quality Gate' and 'Water Source Gate.' During this period, a newspaper's '27 consecutive days, 67 pages of coverage' also became another 'conspiracy theory' topic that Zhong enjoyed discussing.
The press conference on May 6 was a climax of Nongfu Spring's crisis PR. The conference was full of gunpowder and also full of 'event marketing' tricks: Zhong, while making an impassioned speech, drank mouthfuls of Nongfu Spring bottled water placed prominently on the podium.
Another focus of the conference was Nongfu Spring's decision to withdraw from the Beijing barreled water market, which attracted great attention and also earned sympathy points from many commentators.
But the key question is: what does the 'Water Quality Gate' and 'Water Source Gate' caused by the sediment in Nongfu Spring's bottled water produced in Danjiangkou, Hubei, have to do with the 'barreled water factory' in Beijing? What does it have to do with Zhejiang's water standards?
From conspiracy theories about competitors, to the big debate on drinking water standards, to holding a press conference and announcing withdrawal from the Beijing 'barreled water' market, a series of skilled 'event marketing' completely overshadowed consumer complaints about Nongfu Spring bottled water and media doubts about the Danjiangkou water source.
To date, Nongfu Spring has not even apologized or compensated consumers who bought bottled water with suspended matter.
**The Water Source Gate Is Not the End**
Including the 'Water Quality Gate' and 'Water Source Gate,' the quality crises encountered by Yangshengtang and Nongfu Spring in recent years, no matter how the parties question the opponent's 'conspiracy theory,' are fundamentally related to the concept hype at the initial product design. The initial concept elements are unstable, leading to later product crises. Zhong has experienced this cycle of success and failure many times.
Nongfu Spring's differentiated marketing concept in bottled drinking water is to adhere to pure nature, 'never using a drop of urban tap water.' It has always promoted four main water source bases: Qiandao Lake in Zhejiang, Danjiangkou in Hubei, Wanlv Lake in Guangdong, and Changbai Mountain in Jilin.
After the 'Water Source Gate,' the water source issue at Danjiangkou has not been taken seriously by the public and the parties involved—Nongfu Spring's water source in Danjiangkou, Hubei, is not located in the main reservoir area of Danjiangkou Reservoir, but at the confluence of the Danjiang and Hanjiang rivers downstream of the reservoir. Geographically speaking, the water used by Nongfu Spring's Danjiangkou water plant is Hanjiang and Danjiang water, not Danjiangkou Reservoir water. This already involves the authenticity of Nongfu Spring's brand promotion.
Secondly, 21st Century Net found that with the deterioration of the ecological environment, the water quality of major reservoirs in China has shown signs of worsening. According to the monthly water quality reports published by the China National Environmental Monitoring Station, from November 2012 to March 2013, although the overall water quality of Danjiangkou Reservoir in Hubei was excellent, for five consecutive months, the total nitrogen content index was in a 'lightly polluted' Class IV state. If the water quality indicators in the upstream reservoir area deteriorate, how can the water quality at Nongfu Spring's water source, the 'Hanjiang-Danjiang confluence,' be good?
The total nitrogen index is an important indicator for evaluating the quality of national surface water and plays a significant role in assessing eutrophication. Urea fertilizers, artificially cast bait, fish excrement, industrial nitrogen-containing waste, and nitrogen-containing exhaust gases from fuel combustion can, under natural conditions, form nitrates through precipitation leaching and decomposition, which flow into rivers and lakes and seep into groundwater, causing nitrate pollution of surface and groundwater. These all increase the total nitrogen index. Nitrates can be reduced to nitrites by anaerobic microorganisms under anaerobic conditions, and long-term use can lead to esophageal and gastric cancer.
The same problem of excessive total nitrogen index had already erupted in 2009 at Nongfu Spring's most important water source, Qiandao Lake in Zhejiang, and evolved into another 'Water Source Gate' at that time.
Nongfu Spring initially focused on promoting 'natural water' and the four famous lake and reservoir water sources, which was equivalent to tying its brand to the water quality of the water sources, a gamble. Once the water quality of the water sources deteriorates, it is bound to impact the Nongfu Spring brand.
The two 'Water Source Gates' are not coincidental. The 2009 'Water Source Gate' was just the beginning. If the deterioration of the ecological environment does not change, Nongfu Spring's 2013 'Water Quality Gate' and 'Water Source Gate' will not be the end.
**The Causes and Consequences of Concept Hype**
The causes and consequences of product quality and concept hype also occurred with 'Nongfu Orchard.'
The earliest promotional concept of 'Nongfu Orchard' was: 100% natural fruit and vegetable juice, 'without adding any acidulants, pigments, or preservatives.'
But the pure natural 'Nongfu Orchard' has another major trait—the pulp in the juice is prone to fermentation and expansion. The humanized slogan 'Shake before drinking' brought huge risks to this natural product. From 2005, incidents occurred in Shenzhen, Qingdao, Huzhou, Beijing, Xiamen, and other places where shaking 'Nongfu Orchard' before drinking resulted in bottle explosions and consumer injuries. The most serious was a consumer surnamed Li in Xiamen, whose awning roof was blown a hole the size of a pizza.
Product crises caused by defects in concept elements, similar to Nongfu Spring and Nongfu Orchard, have also occurred frequently in Yangshengtang's product series.
Yangshengtang's flagship product, Yangshengtang Turtle and Soft-Shelled Turtle Pills, after initial hot sales, was once discontinued around 2001. The reason was that the pills used turtle and soft-shelled turtle as raw materials, and the concept of 'making the whole turtle and soft-shelled turtle crisp into micro-powder at minus 196 degrees Celsius,' although an extremely novel production process and marketing concept at the time, also caused disgust among many consumers and interference from the National Animal and Plant Protection Association, causing the company to suffer repeated impacts and the market to gradually shrink.
'Mother's Brand Beef Sticks,' behind its exotic brand story, claims to 'use foreign traditional recipes, carefully selected ingredients, select 10% of the best beef from a whole cow, add seasonings, salt, etc., and bake; the color is natural, the meat is dense and delicious.'
But this brand story and production process are equally fragile in the face of quality reality: in early 2009, the Guangzhou Consumer Committee conducted comparative tests on 46 batches of cooked meat products on the market. The results found that the 'Mother's Original Beef Sticks' (72g pack, production date 2008.08.23) from Yangshengtang Zhejiang Food Co., Ltd. had a bacterial count exceeding the standard by more than 6 times.
Behind Zhong's unrestrained product creativity and brand concepts, product crises caused by water sources, raw materials, and production processes have never ceased.
The key issue is that the elements behind these products are not sufficient to support Zhong's creative space.
Some elements, such as the raw material composition of 'Yangshengtang Turtle and Soft-Shelled Turtle Pills' and 'Nongfu Orchard,' are almost impossible to change. Once changed, these two products would be completely different. In fact, 'Nongfu Orchard' fruit and vegetable juice has begun to 'regret' its original 100% pure natural positioning, launching a revised version with added food additives and reduced fruit pulp content to 30%.
Some elements that cause problems in other products can be improved through active action, such as the process and hygiene control of Mother's Brand Beef Sticks.
After huge promotional costs and marketing investment, and 13 years of 'water war,' the brand and quality of 'Nongfu Spring' drinking water have become tied to the water quality of the water sources. It has become a gamble entered inadvertently.
From the water quality test reports of 2009 and 2013, water quality crises at Qiandao Lake in Zhejiang and the 'Hanjiang-Danjiang confluence' have shown signs. Subsequent environmental governance will require significant time and money.
The garbage-strewn scene around Nongfu Spring's Danjiangkou water plant indicates that Zhong seems not yet to realize that he has entered this environmental governance gamble with no end in sight.
In fact, the key to the 'Water Quality Gate' and 'Water Source Gate' issues lies only in whether environmental governance is done or not. Behind this, no competitor or 'conspiracy theory' can defeat Nongfu Spring.
Only Nongfu Spring itself can defeat Zhong Shanshan and Nongfu Spring.
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