Australian company behind Prime drinks enters voluntary administration

The Australian company responsible for distributing and marketing Prime Hydration, the popular drink backed by YouTubers Logan Paul and KSI, has entered voluntary administration following mounting financial difficulties.

Congo Brands Australia, which manages the Prime and Lunchly brands in Australia, has appointed an administrator to oversee its operations while options for the business are explored. The first meeting of creditors is expected to take place in the coming days.

Financial documents show the company experienced a significant decline in sales, falling from A$31 million to A$14.5 million in a year. It also reported a net loss of A$1.42 million, debts of A$7.92 million, and had less than A$85,000 in cash available at the time of its latest filing.

The administration follows legal action launched by packaging supplier Orora Group, which has applied to wind up the Australian business over alleged unpaid debts. A court hearing is scheduled for later this month.

Prime became a global sensation after launching in 2022, with bottles selling out across several countries thanks to the popularity of Logan Paul and KSI. The brand later secured major sponsorship agreements with sports teams and organisations worldwide. Despite its success internationally, the Australian business has struggled amid falling sales and financial pressure.

The appointment of administrators does not necessarily mean the business will close permanently. Administrators will now assess whether the company can be restructured, sold or placed into liquidation. Neither Logan Paul nor KSI had publicly commented on the Australian administration at the time of publication.