Once hailed as a viral sensation, Prime Hydration — the energy drink brand co-founded by YouTubers Logan Paul and KSI — is now facing serious growing pains. After enjoying blockbuster sales at launch, particularly in the UK, the brand has seen a steep decline in revenue, waning consumer interest, and mounting legal disputes with its suppliers.
According to public filings, Prime’s UK revenue dropped by over 70% in 2024, falling from £120 million (approximately $163 million) in 2023 to just £33 million ($45 million). While the brand remains profitable in the region, earnings plummeted to £312,000 — a 92% decrease compared to the prior year.
From Viral Craze to Market Saturation
Prime burst onto the global beverage scene in 2022 with a marketing strategy driven by the social media clout of its founders. The launch sparked frenzied demand — especially among younger consumers in the UK — where some schools even banned the drink, and students resorted to trading bottles like collectibles.
However, that early hype has proven difficult to sustain.
In a statement, the company acknowledged the shift in consumer behavior, saying it had entered a “strategic review process to transition from an initial hyper-growth phase to a more sustainable, long-term presence in the market.” It also noted that brand interest had “moderated” over the past year.
The challenges haven’t been limited to the UK. In the US, sales have also dipped. According to data from market insights firm Numerator, Prime’s US sales were down 40% year-over-year as of June 2024. The firm attributed the decline to fewer new customers, reduced purchase frequency, and lower spending per unit — all signs that the brand’s early momentum has slowed considerably.
The Influencer Marketing Dilemma
Prime’s early success was a textbook example of how influencer marketing can supercharge a product. In its first full year, Prime reportedly brought in $1.2 billion in global sales, placing it in the ranks of other influencer-driven brands like MrBeast’s Feastables and Alex Cooper’s Unwell drinks.
But experts warn that what goes viral quickly can also fade fast.
“The upside of the influencer-led, social approach to beverage marketing is that it allows you to capitalize quickly on short-term cultural trends,” said beverage analyst Howard Telford. “But there is a big risk that this turns into a short-term viral fad unless the product itself, rather than the celebrity of the founders, can serve a real consumer need.”
This may be the core issue Prime is now confronting. As the novelty wears off and online buzz diminishes, maintaining consumer loyalty and consistent sales becomes more difficult — especially in an already saturated energy and sports drink market.
Legal Troubles Add to Headaches
Compounding its business woes, Prime has also become embroiled in a series of legal disputes with key vendors.
In one notable case, Refresco, a bottling supplier, sued Prime’s parent company for $68 million, alleging that Prime failed to fulfill its contractual obligation to purchase 18.5 million cases annually over three years. The lawsuit blamed the shortfall on “fading social media buzz” and “a series of lawsuits,” stating that sales were falling well below projections. The case was eventually dismissed on jurisdictional grounds.
Another vendor, Agrovana — a Massachusetts-based ingredient importer — also took legal action against Prime, accusing the company of failing to pay for product orders under binding purchase agreements. The complaint cited Prime’s “cash-flow issues” and efforts to secure new credit lines as signs of financial strain.
Prime has denied the claims and filed a counter-lawsuit, arguing that Agrovana failed to meet product quality standards. Agrovana has refuted those accusations, maintaining that Prime’s struggles were rooted in market dynamics, not vendor performance. That case is still ongoing.
A Crucial Crossroads for Prime
Despite the downturn, Prime has not publicly commented on the sales slump or legal issues. Still, the numbers paint a clear picture: the brand is facing a critical test of resilience. What started as a viral phenomenon now needs to evolve into a durable, scalable business — one that can survive beyond the social media cycles that helped launch it.
As Logan Paul and KSI look to steady the brand, Prime’s future may hinge less on internet fame and more on traditional fundamentals: consistent product quality, dependable business practices, and customer loyalty that can’t be bought with clicks alone.