Prime energy drink, which is founded by YouTube influencers KSI & Logan Paul, has seen a 77% revenue drop to just $300M.

The drinks brand that drove $1.3B in global sales in 2023 has suffered a massive correction. Analysts stated a few reasons as to why this occurred.

Why Prime lost $1B:

• The first reason is hype – the initial craze for the energy drink as faded completely and the buzz is dead, lowering the demand.
• In the UK demand fell drastically as revenue dropped by 70% and profits nosedived by 90%.
• Legal disputes regarding issues with supplier lawyers and contracts have hindered operations.
• Concerns about the amount of caffeine in the drink as well as marketing towards their young audiences has led to regulatory scrutiny and Government attention.

Prime stated that they’re to do a strategic review to shift away from a hypergrowth model and find a more sustainable business model.