Wahaha has its origins in the sales department of the Shangcheng District School in Hangzhou, which was founded in 1987. A factory, the "Hangzhou Wahaha Nutritional Foods Factory" (杭州娃哈哈营养食品厂), was created in 1989 to tap a niche in the market for a "children's liquid nutrient" 儿童营养口服液. Although there were 38 producers of liquid nutrients on the market, none were specifically for children. The advertising campaign struck a note with single child Chinese parents, and was a runaway success. In 1991, the factory was merged with the ailing "Hangzhou Canned Food Factory" (杭州罐头食品厂) in a social restructuring, but which increased the overheads of the business.