The Downfall Of Logan Paul And KSI's PRIME Drink Explained

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PRIME Hydration is the much-discussed and much-publicized drink cofounded in 2022 by two of the most popular YouTubers and social media influencers in the United States and beyond. The brand had a shockingly fast and meteoric success. Just less than two years in, PRIME sold its 1 billionth bottle, a milestone that's undeniably impressive by any standard.

"In a short period of time, we've become the fastest-growing beverage company in history," the brand's cofounders, Logan Paul and KSI, said in a press release, according to HypeBeast. "We do everything big. Since we created PRIME, we've made our own blueprint when it came to marketing, scaling, and building the brand."

PRIME indeed went big and exceeded everyone's expectations, achieving newsworthy milestones only a few companies can match. Unfortunately, PRIME has also become known for hype that doesn't guarantee value or longevity. Today, marketing and business gurus use the brand as an example of what not to do to avoid crashing and burning.

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PRIME Hydration was marketed with so much hype, and a lot of that hype rested on the popularity of its two YouTube-star founders, Logan Paul and KSI. Logan Paul started his influencer career on the deceased short-form video social media app Vine, before moving to YouTube. He quickly amassed a large following and had become one of the platform's biggest content creators by 2017. He's famous for his exuberance and go-getter attitude, and even landed some acting roles on TV and film. He then started boxing and professional wrestling while building a business empire.

KSI, whose full name is Olajide Olatunji, is a content creator, professional boxer, musician, and entrepreneur from Hertfordshire, U.K. He started on YouTube at 15 and won over audiences with his comedic video game commentaries. Like Logan Paul, KSI later branched out to other fields, mainly music, professional boxing, and business.

A fierce rivalry developed between the two, which started with public insults and culminated in two rounds in the ring. Their first match in 2018 was a draw; KSI won the second by split decision a year later. Three years later, they surprised the public with an announcement. "We've ended our rivalry and have officially become business partners #primefounder," Logan Paul said on Instagram. The once-rivals became business partners to launch a new sports drink, and they promoted it with the same fervor as they did their respective entertainment careers: With lots of fanfare and buzz.

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The first hurdle to PRIME Hydration's sustainable growth — although it wasn't apparent in the beginning, thanks to how effective Logan Paul and KSI are at attracting audiences — was that the sports drink industry already has many established and well-positioned brands. It's a $25 billion industry, projected to grow to $32.2 billion by 2029. With recognizable brands like Gatorade, Sportwater, and Powerade already dominating the industry, and many smaller companies fighting for a chunk of the market, it's challenging for any newcomer to enter the fray.

Gatorade is firmly on top of the sports beverage market, and has been for many years. Reporting on the YOY sales of sports drink brands, Beverage Industry noted Gatorade led the market with over $7.5 billion in sales from April 2024 to April 2025, nearly six times the sales of the second-placer, Bodyarmor. PRIME ranks fifth at $415 million, which is nothing to scoff at, by any means. However, compared to its second-year sales of $1.2 billion, as reported by Bloomberg, and in light of the massive publicity it generated, the current numbers are disappointing.

Paul and KSI benefited massively from hype marketing, but branding for PRIME is rather unclear. For instance, PRIME's first products were hydration drinks, but initial advertising focused on selling PRIME as a lifestyle brand. Just watch the promo video for PRIME's Central Cee edition on TikTok. It shows rapper Central Cee and KSI lounging in a private jet emblazoned with the brand's logo. It looks more like a lifestyle flex instead of an ad for a hydration drink.

Additionally, PRIME signed huge deals with UFC, WWE, and Arsenal, and assembled a PRIME Team of athletes that includes Kevin Durant. But instead of cultivating meaningful, Nike-level partnerships with them, PRIME continued to do hype marketing (i.e., running a contest with a $1 million prize, which Paul awarded just recently), promotional stunts, and content collabs with influencers like iShowSpeed and Mr. Beast. It also doesn't help that the company has not addressed concerns about PRIME not being a good hydration drink for people who exercise, let alone for athletes (we dive deeper into this issue later in the article). 

This unclear positioning put PRIME between the lifestyle and sports drink categories. Being in the in-between eventually hurt the company because customers who want proper hydration drinks end up choosing brands backed by nutritionists and athletes, while those who simply want refreshing drinks have a ton of other options.

Arguably, one of the biggest issues that has dogged PRIME is the legitimacy of its health claims. Physicians on social media like Dr. Brian Sutterer and Dr. Mike Varshavski, and well-known fitness trainers like James Smith, have claimed PRIME is not a good hydration drink.

The problem lies with PRIME's formulation. Logan Paul likes to highlight its low sugar and calorie counts, especially in comparison with Gatorade Blue. "Gatorade has 36 grams of sugar in it, as opposed to PRIME's two grams. That is a lot of sugar compared to not a lot of sugar," Paul points out. In a TikTok video, he also compared the time it takes to burn the 140 calories in Gatorade, compared to Prime's 20 calories.

Anyone who watches their calorie intake should indeed be mindful of Gatorade's calories. However, if we're talking about hydration, Gatorade is better formulated. It has lots of sugar because glucose promotes faster electrolyte absorption. It is high in sodium, having 270 milligrams, while PRIME only has 10 to 30 milligrams. PRIME, however, has 700 milligrams of potassium. Sodium and potassium are both electrolytes, but it is sodium that the body loses in large amounts during intense physical activity like exercising or playing sports. PRIME is essentially "low-calorie, tasty, coconut water. The problem is that it's marketed with athletes as an optimal hydration drink when its actual composition doesn't hold up," said Dr. Sutterer in an explanation video.

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Since its launch, PRIME has mostly appealed to young audiences. Driven by Logan Paul and KSI's youth-centered marketing approach, PRIME became the "cool" drink that all the famous people on social media know and buy. It gave the younger demographic a drink to call their own, something to set them apart from mom and dad's energy and sports drinks. Kids and teenagers would post videos and selfies with PRIME on TikTok as though a status symbol.

The packaging also spoke to the younger crowd. PRIME is colorful with a large, attention-grabbing typeface that registers well on Instagram and other social media platforms. The brand's promotional videos show kids frolicking about while holding the colorful bottles, and the drinks are brightly colored according to their flavors. Aesthetically, PRIME appeals largely to Gen Z.

Capturing this social media-savvy cohort is advantageous for any brand. But kids and teens are not always a sustainable market because of their limited buying power. PRIME tried to target adults with its WWE partnership and eventual venture into powdered drinks and energy drinks, but the "kids' drink" image has stuck to this day. Adults who don't want the association avoid PRIME, many find it too sweet, and those who understand hydration drinks know that there are better choices in the market.

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There's a lot of online speculation about the truth behind the massive demand for PRIME, especially in light of its sharp decline in 2025. When you have millions of people tuned in for a new product release and the actual inventory delivered to regional distributors is just in the tens of thousands, the demand would surely exceed supply. It wasn't long before industry insiders, including some TV show hosts, took notice.

Source PR, a digital marketing agency in the U.K., cites PRIME as an example of successful scarcity marketing, a strategy that fuels FOMO through catchphrases like "limited supply" and marketing centered around a product being constantly sold out. The agency claims that even if the founders did not intend to create artificial demand, that was exactly what happened in the U.K. Stocks were always in low supply in convenience stores and supermarkets. It heightened the perception of demand exceeding supply and created an urgency to buy PRIME while it was available. But KSI denied purposefully keeping supplies low. "We have tried to increase the supply as much as possible," he told The One Show. "And it's just... it's still not enough."

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It was pandemonium when PRIME first hit the shelves. Kids, and later even adults, got carried away by the craze. It became a case of too much hype creating a negative perception of a brand because it is deemed exploitative. For instance, The Guardian ran a story about how adults and kids alike ferociously fought over the colorful bottles, with "scenes of carnage" inside various stores. Soon after, news outlets started reporting about the outrageous re-sell prices, which reached as much as £100 a can in the U.K. The Robin Report revealed even higher rates of $1,500 a bottle, claiming this incredible hype is why the brand failed.

KSI wasn't happy about the reselling controversy at all. When talkSport asked him about the issue, he said, "People [who are] bulk buying and selling [PRIME] at stupid prices are taking advantage of the hype. I hate it."

For context, a bottle of PRIME retails for £2 in the U.K., and buying wholesale can bring the price down to less than $2 each on Amazon. The energy drinks are more expensive, at $2.50 a can. You can now buy PRIME at these retail prices or less today, but at the height of its hype, fans had been willing to spend hundreds, even thousands of dollars for one bottle.

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In July 2023, New York Senator Chuck Schumer, who was then Senate Majority Leader, raised the issue with the FDA, saying PRIME Energy exceeded the caffeine limits for children, a demographic that comprises a large chunk of its customers. Every 12-ounce can of PRIME Energy contains 200 milligrams of caffeine, which physicians warned is equivalent to six cans of Coca-Cola and two cans of Red Bull.

However, PRIME's 200 milligram caffeine content is standard for energy drinks. Celcius and Gatorade Fast Switch have the same amount of caffeine. Bang Energy actually has more, at 300 milligrams. Additionally, PRIME Energy cans have "For ages 18+" warnings on the label. Paul pointed out that if caffeine is truly dangerous and concerning, there should be regulatory laws requiring retailers to ask for customers' IDs, just like they do for alcoholic drinks. "If we think caffeine is as unsafe as people are saying," he told FOX Business, "then why aren't we controlling [the sale of energy drinks] at the point of purchase?"

PRIME Energy follows industry standards, so why did it get singled out? The problem was in the packaging and marketing. PRIME Energy doesn't look too different from PRIME Hydration, save for the tiny print warning against underage consumption. As a result, kids and their parents are easily confused by the two. And so, the FDA investigation and extensive news coverage on the issue landed a heavy blow on PRIME's reputation.

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As if a widely-publicized FDA investigation wasn't enough, PRIME was also banned in schools in the U.S., U.K., Canada, and Australia. The reasons ranged from kids fighting over PRIME, to the brand failing to sufficiently differentiate its hydration drinks from its energy drinks.

In Canada, Parkside Elementary School Principal Nick Martin agreed that PRIME is an unhealthy distraction and obsession among students. Speaking to CBC, Martin also mentioned a black market in operation among school kids wanting to buy and be seen with the drink. "Some students were bringing bottles of it to school and selling it for profit. While I appreciate their entrepreneurial spirit, I do feel that school is not meant for business transactions," he said.

Meanwhile, in Australia, school officials published health advisories about PRIME's caffeine content on top of banning the product on school premises, according to ABC News. Warnings about the detrimental effects of excessive caffeine in kids under 15 were also released, reminding parents and consumers at large that caffeine is addictive and highly stimulating in ways that children are not physiologically prepared for.

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With controversy pelting PRIME on all sides, it was only a matter of time before the company would face legal trouble. In July 2023, a consumer class action lawsuit was filed in Kentucky citing the company's alleged deceptive marketing practices. The lawsuit held PRIME accountable for advertising its energy drinks to children despite the drink being unhealthy for them.

A second lawsuit was filed that same year, alleging that Prime Energy Grape contained high amounts of per-and polyfluoroalkyl substances (PFAS). These are "forever chemicals" that stay in the body and are not easily expelled. PFAs have been linked to cancer, obesity, sterility, and compromised immune systems. A similar class action suit was filed in January 2024, addressing PRIME's alleged false advertising about the health benefits of their grape-flavored drink for athletes.

PRIME's bottling partner, Refresco, also pressed charges and demanded $67.7 million in compensation. Refresco invested in a dedicated bottling line for PRIME to meet its initial projection of 55.5 million cases within three years. Unfortunately, the sharp decline in demand meant PRIME could not fulfill those orders, and the company says it made no such commitment to Refresco. More recently, in January 2025, a new lawsuit alleged that PRIME falsely advertised having 200 milligrams of caffeine when it actually has 215 to 225 milligrams per can.

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When things started to calm down and PRIME lasted long enough on the shelves for more people to buy it, genuine customer reviews from those who bought the product and did not receive it as a PR package deal started trickling in online. A cursory search on TikTok and YouTube shows opinions on the taste are split. Some say it tastes like medicine, others like some flavors just fine. Gordon Ramsay, who tasted Tropical Punch live on Heart Radio, was hilariously unimpressed. He said, "It's like swallowing perfume. I'll send it to Nigella to cook her pork ribs in."

Many also found the drink a tad too sweet. A guest brought PRIME to Joe Rogan's and said, "It's just like the most sugary drink that doesn't have sugar in it. [PRIME flavors] taste amazing, but they also taste like Kool Aid with three times the sugar in it."

Everything else about the drink (the health benefit claims, questionable hydration formulation, and branding) don't seem to offer anything better than what bigger and more established brands already provide. And so, for all its hype, PRIME did not live up to the promise of being the "better for you" drink.

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From 2022 to 2023, PRIME was a rare sight in supermarkets and retail stores. Customers wiped retailers clean of their stocks as soon as the bottles hit the shelves. But as 2024 progressed, PRIME started staying longer on the shelves, eventually taking up more space as sales started to slow down.

By June 2025, news erupted about PRIME's jaw-dropping sales decline. The company reportedly had a 91.6% decline in net profits. According to industry news site, The Grocer, there had already been signs of the company's downward sales and revenue trends in the U.K. as early as September 2024. From around that period to the present, interest in the drink waned, and retailers started selling PRIME at a discount. An anonymous source of the retail news site allegedly said the demand had gotten so low, they could almost give the drink away.

Amidst allegations of creating artificial demand, purposefully withholding supply to retailers, false advertising, and creating promo contents targeting underage customers even though some of its products are not safe for children to consume, PRIME's meteoric rise stuttered. And yet, its influential co-founders remain in high spirits and are looking positively into the future. In May 2025, Logan Paul proudly gave a tour of the company's 1.2 million square feet production facility. It is a high-tech operation, boasting high-speed assembly machines that could blow, fill, and cap 20 PRIME bottles per second. Individual packaging and palleting are just as efficient, promising that the facility can produce hundreds of millions of bottles per year.

As for partnerships, PRIME lost Arsenal to Coca-Cola, but they did land a sponsorship deal with FC Barcelona and Bayern Munich. The LA Dodgers also chose the brand as their official sports drink. The company also recently released two new products in the U.S. and Europe: KSI The Nightmare, a limited edition, strawberry-and-cream hydration drink, and Peso Pluma. The energy drink collab with the Mexican rapper Peso Pluma himself, with the drink being sold last year as a Mexico-exclusive limited edition.

With PRIME powering through with production, marketing, and product development, only time will tell if the industry spoke too soon about the brand's downfall. We look forward to see what else the beverage company has in store.