Revenues at energy drinks sensation Prime have crashed after early hype in the brand fronted by YouTubers KSI and Logan Paul faded.
Powered by internet fanfare and schoolgate competition, the sports drinks’ UK subsidiary leapt from a standing start to £112m turnover in just a single year from its launch in June 2022.
However, newly filed Companies House accounts for the 12 months to 31 December 2024 reflect a waning interest in the brand, revealing a 71% drop in turnover to just £32.9m.
Prime Hydration UK’s profits also vanished as revenues slumped last year, with the bottom line dropping from £4.4m in 2023 to £940k.
Data compiled for The Grocer’s Top Products Survey 2024 showed the collapse was well on its way, with till sales value already down 46.2% to £73.4m from £136.6m year on year [NIQ 52 w/e 7 September 2024].
Strategic review
Prime has kicked off a strategic review in response to the plummeting top line as it sought to “transition from an initial hyper-growth phase to a more sustainable, long-term presence in the market,” according to the accounts, signed off by Max Clemons, who co-founded Prime in collaboration with KSI and Paul.
Acknowledging the “considerable attention” the brand’s launch had attracted, the business review admitted consumer interest had “moderated”.
After struggling to keep up with initial demand, retailers began slashing prices to get rid of stock last year, with one senior sector source telling The Grocer at the time “you almost can’t give them away”.
By the start of 2024, weekly Google searches for the drink had fallen to around a tenth of the level they had been from October 2022 to March 2023, with interest tailing off slowly thereafter.
Prime highlighted its future developments as the business planned for trading at a slower pace following the early hype.
“As the company works on its transition to a phase of more sustainable, long-term presence in the market, it continues to launch new product lines and keeps innovating,” the accounts added.
“The latest launch of the Prime Ice range in the beginning of 2025 is a testament to this. Additional product launches are scheduled for 2025 and beyond, with specific details currently under review.”
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