Summary of the Key Issues
Wangwang has recently become a hot topic on social media due to its products being described as “too sweet,” which reflects a significant operational crisis it is facing: profits declined by 11.5% in the fiscal year 2025, and revenue and profits in the first quarter of this year fell by 6% and 38% respectively. The reason lies in the surge in consumer demand for lower-sugar options, as Wangwang’s classic products (such as Wangzai milk and snow cakes) contain high levels of sugar. Although the company has launched a health-oriented sub-brand and sugar-free products, they have low recognition among consumers. Additionally, Wangwang is grappling with challenges such as rising raw material prices and changes in distribution channels. However, consumers still have fond memories of the brand, and management has responded by stating that improvements will be made, indicating that there may be an opportunity amidst this crisis.
1. Why Has “Being Too Sweet” Suddenly Become a Fatal flaw?
Today’s consumers are no longer just concerned with whether something is sweet or not. A report from Xinhua News Agency shows that 31% of people prioritize low-sugar or sugar-free options when making purchases, and over 60% find beverages too sweet. Sugar-free tea saw a counter-trend growth of 19.5% in the first half of 2026, accounting for more than 50% of the market share, while sugary sodas saw a decline of 12%.
Wangwang’s classic products have precisely hit a stumbling block: a 245ml bottle of Wangzai milk contains 24.5g of sugar, which is close to the recommended daily limit for adults; Xianbei (a type of snack) may seem salty, but it is actually a mixture of sugar and oil (rice, palm oil, and sugar). What was once considered a sign of quality (“sincerity” in terms of sweetness) has now become a downside—adults who drink Wangzai milk have to consider how much exercise they need after consuming it, and even when buying it for children, parents often scream at the ingredient list: “There’s too much sugar!”
2. Wangwang Is Not Doing Nothing; However, New Products Go Unnoticed
Wangwang has indeed made efforts to improve its health offerings: in 2019, it launched the FixXBody brand focused on calorie control, and in 2024, it introduced low-GI (glycemic index) egg rolls, as well as sugar-free black coffee and tea. The problem is that these products are simply unknown to most consumers!
FixXBody was initially designed to be an independent brand without the Wangwang logo, but consumers couldn’t associate it with the brand at all. On physical store shelves, only Wangzai milk and snow cakes are visible, making the health-oriented products hard to find. When asked about Wangwang’s products, people usually mention the same old three items. This means that despite the investment in innovation, the efforts have gone unnoticed.
3. Beyond Sweetness: The Dual Challenges of Costs and Channels
The decline in profits is not solely due to poor sales; it’s also because Wangwang is making less money and spending more:
- Rising costs: The prices of imported milk powder and palm oil have increased, reducing the gross profit margin from 47.6% to 46.3%.
- Increasing expenses: Sales and management costs are rising as the company invests in new products and changes its distribution channels.
Distribution channels have also changed significantly: in the past, it was enough to be available in supermarkets and convenience stores, but now consumers purchase snacks on platforms like TikTok, at bulk stores, or through community groups. Some retailers even launch their own brands (such as Walmart’s Woji Xian). Although Wangwang is trying to expand into e-commerce and bulk sales, the decline in traditional channels has been too rapid, resulting in a 6% drop in revenue in the first quarter of this year.
4. The Biggest Concern: The Ability to Pass on Childhood Memories
Wangwang enjoys high national recognition, but that nostalgia is limited to a specific generation. Our generation remembers Wangzai milk because of its presence in childhood convenience stores and New Year’s gift packs. However, for children born after 2015, Wangwang is just another ordinary sweet drink on the shelf, perhaps less appealing than starch-based snacks sold near schools.
The inability to pass on childhood memories means that Wangwang cannot rely solely on its loyal customers’ nostalgia. It needs to provide new reasons for young people to buy its products—perhaps by reducing sugar content in its offerings or making them more suitable for modern consumption scenarios (such as office snacks or post-workout snacks). Otherwise, if its loyal customer base continues to decline while new users don’t emerge, the brand will be in real danger.
5. Crisis Is Also an Opportunity: As Long as Consumers Are Still Concerned, There’s a Chance
The recent media attention is actually a good thing; people are still discussing Wangwang’s products, indicating that they care about the brand. Cai Yanming’s son (the company’s Chief Operating Officer) also responded to these concerns, showing a sincere attitude towards making improvements.
Wangwang’s strength lies in its widespread recognition among the public. By reducing sugar content in its classic products or integrating health-oriented lines with the Wangwang brand (such as combining FixXBody with the Wangzai logo), and by reaching out to younger consumers through popular channels like TikTok live streams and snack bulk stores, the brand could potentially regain popularity. After all, people don’t dislike Wangwang itself; they just dislike its excessive sweetness.
In summary, Wangwang’s problem is not that it has become obsolete, but rather that it hasn’t kept up with changing consumer preferences. With willing adjustments to its products and a focus on new markets, this brand that has been with us since our childhood could once again thrive.
(The entire analysis is written in plain language to make it easy for non-financial professionals to understand.)