Executive Summary
Key insights from the ongoing Wanglaoji overseas trademark dispute:
- Jiaduobao and Wanglaoji are locked in a high-stakes legal battle over international trademark rights, with conflicting claims based on court rulings in multiple jurisdictions.
- The dispute reflects broader strategic shifts as Chinese herbal tea brands accelerate global expansion amid rising demand for plant-based beverages.
- Historical domestic conflicts between the companies have resulted in billions in legal claims, now extending to overseas markets.
- Market data shows robust growth in overseas segments, driving competitive pressures and intellectual property enforcement.
- Investors should monitor legal outcomes and international market penetration for impacts on parent company valuations and sector dynamics.
A New Chapter in a Longstanding Rivalry
The Wanglaoji overseas trademark dispute has erupted once again, capturing the attention of global investors and market analysts. Jiaduobao Group (加多宝集团) and Guangzhou Wanglaoji Da Jiankang Industry Co., Ltd. (广州王老吉大健康产业有限公司), two titans of China’s herbal tea industry, have renewed their legal hostilities, this time over the international rights to the cherished Wanglaoji brand. This conflict emerges at a pivotal moment, as both companies aggressively pursue overseas growth in response to shifting consumer trends and market opportunities. The Wanglaoji overseas trademark dispute not only threatens to disrupt expansion plans but also underscores the intensifying competition for global market share in the beverage sector.
With the global plant-based drink market experiencing explosive growth, particularly in regions like Southeast Asia and the Middle East, the stakes have never been higher. The Wanglaoji overseas trademark dispute represents a critical flashpoint that could reshape competitive dynamics and influence investment strategies in Chinese consumer goods. As legal teams prepare for prolonged battles across multiple continents, the outcome of this conflict will have far-reaching implications for brand valuation, market access, and international trade relations.
The Current Overseas Trademark Battle
The Wanglaoji overseas trademark dispute has escalated into a complex international legal confrontation, with both parties presenting starkly different narratives supported by court documents and regulatory filings. This conflict centers on the legitimate ownership and registration of the Wanglaoji trademark in key global markets, with each side leveraging legal victories to bolster their positions.
Jiaduobao’s Claims and Legal Victories
Jiaduobao Group has asserted its legal rights to the Wanglaoji trademark in overseas markets, citing historical agreements and recent court decisions that support its position. In an October 10 declaration, the company stated that it legitimately acquired the overseas Wanglaoji trademark rights in the early 2000s, following earlier arrangements with descendants of the Wanglaoji lineage who provided the ancestral herbal tea formula. Jiaduobao emphasizes that it has successfully registered the Wanglaoji trademark in over 60 countries and territories worldwide, establishing a substantial international footprint.
The company has pointed to significant legal victories that reinforce its claims. In June 2024, the Canadian Federal Court ruled that eight Wanglaoji trademark registrations held by Jiaduobao’s affiliate, Vanjet Limited (万捷有限公司), were legally valid and enforceable. Similarly, the General Court of the European Union upheld Vanjet Limited’s Wanglaoji trademark registrations within the EU jurisdiction. These decisions represent important milestones in the Wanglaoji overseas trademark dispute, providing Jiaduobao with legal ammunition to defend its international brand presence.
Wanglaoji’s Counterclaims and Legal Challenges
Wanglaoji, operated by Guangzhou Wanglaoji Da Jiankang Industry Co., Ltd., has mounted an aggressive response to Jiaduobao’s assertions, alleging improper registration tactics and asserting its own international rights. In a September 30 statement, Wanglaoji accused Jiaduobao of employing offshore affiliate companies to maliciously register the Wanglaoji trademark in numerous countries. The company emphasized that its parent, Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. (白云山) (stock code: 600332), along with Wanglaoji itself, has completed registration of Wanglaoji and WALOVI series trademarks in over 100 countries and territories.
Wanglaoji has actively challenged Jiaduobao’s trademark registrations through legal channels across multiple jurisdictions. The company reports having initiated维权 challenges in 21 countries against trademark registrations by Jiaduobao’s affiliated companies, with 10 countries already ruling to cancel Jiaduobao’s trademarks. A significant ruling from the Macau Special Administrative Region’s Court of Final Appeal determined that trademark registrations made primarily to exclude others from use, even with symbolic utilization, do not constitute genuine use and should therefore be revoked. This legal precedent could have substantial implications for the ongoing Wanglaoji overseas trademark dispute, potentially undermining Jiaduobao’s position in other markets.
Historical Context of the Trademark Dispute
The current Wanglaoji overseas trademark dispute represents merely the latest chapter in a conflict that has spanned decades, with roots in a complex business relationship that ultimately deteriorated into one of China’s most protracted corporate legal battles. Understanding this history is essential for contextualizing the current international confrontation and anticipating its potential resolution.
Origins and Past Legal Battles
The relationship between Jiaduobao and Wanglaoji began cooperatively in 1995 when Hongdao Group (鸿道集团), the controlling entity behind Jiaduobao, entered into an agreement with Guangzhou Pharmaceutical Holdings Group (广药集团) to obtain exclusive rights to the Wanglaoji brand and canned beverage production. Under Jiaduobao’s management, the Wanglaoji brand transformed from a regional specialty into a nationally recognized herbal tea phenomenon, achieving remarkable commercial success and market penetration throughout China.
As the original cooperation agreement approached its expiration, tensions began to surface, culminating in a complete breakdown of the relationship in 2011. Since that rupture, the companies have engaged in dozens of legal proceedings covering trademarks, packaging, and advertising slogans, with claimed damages reaching billions of yuan. These high-profile cases have attracted significant media attention and judicial scrutiny, establishing important precedents in Chinese intellectual property law. The domestic legal warfare has created a foundation of animosity and legal strategy that now informs the current Wanglaoji overseas trademark dispute.
Key Court Rulings and Implications
The domestic legal conflict between Jiaduobao and Wanglaoji has produced several landmark rulings that continue to influence the ongoing Wanglaoji overseas trademark dispute. In 2014, Guangzhou Pharmaceutical Holdings Group initiated trademark infringement litigation against Jiaduobao, resulting in a 2018 preliminary judgment from the Guangdong High People’s Court (广东省高级人民法院) ordering Jiaduobao to pay 1.44 billion yuan in compensation. Both parties appealed this decision, leading to a significant development in 2019 when the Supreme People’s Court (最高人民法院) overturned the ruling, citing major deficiencies in both content and form of evidence presented by Guangzhou Pharmaceutical Holdings Group.
In July 2023, the Guangdong High People’s Court issued a new first-instance judgment in the trademark rights dispute, finding six Jiaduobao companies jointly liable for infringement and ordering compensation of 317 million yuan. Jiaduobao expressed disappointment with this verdict and announced plans to appeal to the Supreme People’s Court. These domestic legal maneuvers demonstrate the persistent nature of the conflict and establish patterns of legal argumentation that are now being deployed in international venues as part of the Wanglaoji overseas trademark dispute.
Market Implications and Global Expansion
The Wanglaoji overseas trademark dispute occurs against a backdrop of rapidly evolving global beverage markets and strategic international expansion by both companies. As domestic growth potential shows signs of maturation, overseas markets represent crucial frontiers for revenue diversification and brand development, making the resolution of the Wanglaoji overseas trademark dispute particularly consequential for future growth trajectories.
Growth in Overseas Markets
International markets have emerged as battlegrounds for Chinese herbal tea brands, with both Jiaduobao and Wanglaoji reporting significant overseas expansion. According to data from Frost & Sullivan (沙利文), the global plant-based beverage industry has demonstrated explosive growth compared to cooling carbonated drink markets, achieving a compound annual growth rate of nearly 10% between 2019 and 2024. Emerging markets in Southeast Asia and the Middle East have become particularly important growth drivers, with Southeast Asian plant-based beverage sales increasing by 25% in 2023 alone.
Wanglaoji has capitalized on this trend, with Deputy General Manager Ye Jizeng (叶继曾) revealing during the August 2025 global launch of the WALOVI international can that the company’s overseas market scale has grown 6.5 times over the past decade, achieving a compound annual growth rate exceeding 25%. The company has intensified its overseas supply chain布局 and plans deeper cooperation with partners in key international markets to establish stable sales networks. This aggressive overseas push has contributed positively to financial performance, with Wanglaoji’s parent company Baiyunshan reporting first-half 2025 revenue of 6.499 billion yuan for Wanglaoji, an 8.38% year-over-year increase, and net profit of 1.295 billion yuan, up 15.87%.
Competitive Landscape and Strategic Moves
The Wanglaoji overseas trademark dispute reflects broader competitive dynamics as Chinese beverage brands internationalize their operations. Jiaduobao has similarly pursued overseas market development, with focused efforts in Southeast Asia and Hong Kong markets, including establishing production facilities in Malaysia. Both companies recognize that international expansion represents not only revenue opportunity but also strategic necessity in an increasingly globalized beverage industry.
The timing of the intensified Wanglaoji overseas trademark dispute coincides with Wanglaoji’s rebranding initiative using the WALOVI identifier for international markets, suggesting that trademark clarity has become increasingly urgent as both companies accelerate global deployment. Industry analysts note that resolution of the Wanglaoji overseas trademark dispute will significantly influence market entry strategies, partnership formations, and competitive positioning across multiple international regions. The outcome may determine which company can leverage the valuable Wanglaoji brand equity in high-growth markets versus being forced to develop alternative brand identities.
Financial and Economic Impact
The Wanglaoji overseas trademark dispute carries substantial financial implications for both companies and their stakeholders, including investors, suppliers, and distribution partners. The legal uncertainty created by the conflict affects valuation assessments, investment decisions, and strategic planning throughout the herbal tea sector and related industries.
Performance of Parent Companies
The financial health of the parent organizations involved in the Wanglaoji overseas trademark dispute provides important context for understanding the resources available for legal battles and international expansion. Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. (白云山), Wanglaoji’s parent company, has demonstrated robust financial performance, with its 2025 interim report showing strong growth in the Wanglaoji segment. The 8.38% revenue increase and 15.87% net profit growth in the first half of 2025 indicate the brand’s continuing commercial strength despite legal challenges.
While detailed financials for privately-held Jiaduobao are less transparent, the company’s significant investments in overseas trademark registration and international manufacturing facilities suggest substantial financial commitment to global growth. The costs associated with the Wanglaoji overseas trademark dispute, including legal expenses and potential damages or licensing fees, could impact both companies’ profitability and allocation of capital toward other strategic initiatives. Investors closely monitor these developments for signals about future earnings potential and management effectiveness in navigating complex intellectual property environments.
Investor Considerations
The Wanglaoji overseas trademark dispute presents several important considerations for institutional investors and financial analysts covering the Chinese consumer goods sector. Key factors include:
- Legal risk exposure: The potential for unfavorable court rulings that could restrict market access or require significant financial settlements.
- Brand valuation implications: Uncertainty regarding international rights to the valuable Wanglaoji trademark could affect company valuations and merger/acquisition scenarios.
- International expansion trajectory: Resolution of the Wanglaoji overseas trademark dispute will directly influence the pace and geographic focus of global market development.
- Competitive dynamics: The outcome may alter the balance of power between Jiaduobao and Wanglaoji, potentially creating opportunities for other market participants.
Financial professionals should maintain vigilant monitoring of legal developments in the Wanglaoji overseas trademark dispute, as court decisions in key jurisdictions could trigger significant stock price movements for publicly-traded entities like Baiyunshan. Additionally, the dispute highlights broader intellectual property considerations for investors in Chinese companies expanding internationally, where trademark protection regimes vary significantly across markets.
Strategic Outlook and Forward Guidance
The Wanglaoji overseas trademark dispute represents a critical inflection point for both companies and the broader Chinese beverage industry’s global ambitions. Several strategic considerations emerge from analyzing the conflict’s trajectory and market context. Legal resolution pathways will likely continue through multiple international jurisdictions, potentially requiring years of litigation before establishing clear trademark ownership boundaries. Both companies appear prepared for extended legal engagement, given the substantial commercial value at stake in international markets.
Market expansion strategies may increasingly diverge, with Wanglaoji emphasizing its WALOVI international brand identity while Jiaduobao leverages its existing Wanglaoji registrations. This bifurcation could ultimately benefit both companies by reducing direct competition in certain markets, though the current legal conflict suggests both parties believe significant value remains in controlling the original Wanglaoji brand internationally. The plant-based beverage market’s strong growth fundamentals provide sufficient opportunity for multiple successful competitors, suggesting that negotiated settlement remains a possibility despite current hostilities.
For investors and industry participants, continued attention to legal developments in key markets like Southeast Asia, Europe, and North America will provide important signals about the dispute’s direction. Additionally, monitoring both companies’ international sales figures, partnership announcements, and product innovation will help assess whether the Wanglaoji overseas trademark dispute is creating operational distractions or conversely driving more focused international strategies. The ultimate resolution will likely establish important precedents for how Chinese brands navigate international intellectual property environments during global expansion.