In 2023, Bloomberg reported that Prime Hydration was set to do $1.2 billion in sales during its first year of operation. Logan Paul and KSI‘s beverage brand was flying high, but like with many energy drinks, that boost was followed by an epic crash.
The latest Prime data is concerning, to say the least. Citing Circana Food, business journalist Darren Rovell reported on X that Prime sales are down 42% year-over-year. Some other outlets have recently claimed that Prime’s year-over-year decline could be as steep as 90%.
So what happened? There are a few obvious issues. Scrutiny from the FDA — which questioned Prime’s combination of potent ingredients and kid-friendly marketing — didn’t help. Neither did claims about the “harmful chemicals” in Prime bottles or lawsuits related to alleged breaches of contract.
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Those scandals didn’t help Prime, but the brand’s strategy was always designed to be boom-or-bust. It was born out of a boxing rivalry and had headline-grabbing drama in its DNA from the start.
Because of Prime’s origins, viral marketing seemed to make sense as a promotional strategy, and that’s exactly the lane KSI and Paul stepped into. Electric blue NASCAR vehicles, Los Angeles Laker slam dunks, and Super Bowl commercials all contributed to Prime’s first-year boom, but the beverage company’s founders have struggled to turn that momentum into a sustainable, long-term business strategy.
To salvage Prime, KSI and Paul should take some lessons from MrBeast. His first foray into consumable products, MrBeast Burger, had a bold marketing strategy that was marred by behind-the-scenes disputes. MrBeast has supported Feastables with a fully-organized business behind it, and sales traffic has been strong so far.
KSI and Paul could still get a lot out of Prime if they choose to rethink their marketing strategy — and maybe reformulate their beverage. It worked for MrBeast, and it would be nice if Prime could become Gordon Ramsay-approved.
