The influencer-backed global sensation, Prime Hydration, has seen its Australian arm collapse into administration.
Launched in 2022 by social media influencers Logan Paul and KSI, under parent company Congo Brands, Prime Hydration had the stated intention of taking on beverage giant Gatorade.
A wave of viral attention followed its launch. Due to its scarcity, the originally priced US$4 beverages once reached a peak resale price of US$1500. In the UK, the craze had gained so much momentum that supermarkets had to put limits of how many drinks could be bought by each individual customer.
Prime Hydration then became a headline sponsor of FC Barcelona, Arsenal FC, and the UFC organisation, just one year into its lifespan.
But the hype was short-lived. Its products started to appear on clearance shelves and, in the UK, its overall sales in 2024 were less than a third of the peak in the previous year.
And now, as of July 7, Congo Brands is seeking to wind up its operations in Australia.
Creditors are due to meet for the first time on July 17; Alice Ruhe has been appointed the administrator. A case is due to be heard in the Federal Court at the end of the month.
The Daily Telegraph reported that the Melbourne-based arm of Prime Hydration suffered a loss of $1.42 million in 2024, with $7.92 million in outstanding payments to suppliers.
The beverage brand has an array of distribution channels in Australia, including Coles, Woolworths, IGA, its own website, and specialist sports nutrition retailers.
