Prime, the celebrity-founded brand that took social media – and the beverage market – by storm has run into hardship as consumer interest is slipping right along with sales. It is a reminder that no matter how much of a social media hype you manage to create around your brand, building a business that will last in the long term is never easy – especially not if your product doesn’t actually fill a gap in the market.

Prime Hydration was launched by influencer Paul Logan and rapper/boxer KSI in 2022 to challenge the likes of Gatorade. The product quickly became viral among the younger generation, no doubt thanks to its founders’ already strong social media presence, and people could be seen fighting over bottles in US supermarkets while in some markets the craze caused the product to be sold at a whopping €15 per 500ml bottle.

The original product, which is essentially a coconut water-based beverage with added electrolytes and BCAAs sold in very sweet fruity flavours, was complemented with a range of energy drinks launched in 2023. These two ranges, totalling 17 products in total, make up Prime’s portfolio today.

The brand was off to a strong start with global sales of around $250m (€212m) in 2022 and $1.2bn (€1bn) in 2023. But a 70% decline in UK sales has now forced the company to enter a “strategic review process to transition from an initial hyper-growth phase to a more sustainable, long-term presence in the market", the company said in a statement. UK sales dropped from £112m ($153m) in 2023 to £33m ($45m) in 2024 while profits fell 92% from £3.9m ($5.3m) to £312,000 ($426,000).

In the US, sales are believed to have fallen by approximately 40% in 2024, which according to market insights firm Numerator mostly depends on a lack of new buyers and fewer purchases by established customers. Prime’s targeting of young consumers – consumers who have now aged, matured and perhaps grown out of habits and interests they had two years ago – is likely to blame for much of this. This didn't stop the brand from launching America's 6th most successful product in 2024 (according to Circana) however – the Prime energy drink. 

However, one of the most important reasons why Prime is waning is that its product has failed on one of the most important aspects of marketing: differentiation. Yes, the brand was created by two unsually successful influencers and has a very strong social media presence, but the product itself is by no means unique. There is a myriad of electrolyte drinks and energy drinks in the US market and beyond, most of which probably taste better than Prime (taste is another issue the brand has been struggling with, with some consumers comparing the flavour to perfume).

For Prime it seems to have never been about the product as much as the brand – it describes itself as “created for those that strive for iconic. To fill the void where bold, in-your-face flavour meets legendary experiences.” Focus seems to be more on encouraging consumers to buy the product for what it represents rather than what it is. This is illustrated by the brand’s latest marketing campaign, named Hydration Exhibition. It encourages consumers to buy bottles from its Collector Series and “curate your legacy” with the chance to win one million dollars.

Will the business find a way to recover or is a hype sometimes just a hype?