Melbourne, Australia – The Australian distributor for the viral influencer-backed drink Prime has collapsed into administration, according to financial filings. Congo Brands Australia, the Melbourne-based entity responsible for distributing Logan Paul and KSI’s beverages in the country, has entered administration with debts totaling $7.92 million and only $85,000 in cash on hand. Alice Fay Ruhe of The Ruhe Group was appointed administrator on July 7, with a first creditors meeting scheduled for July 17 and a related Federal Court hearing set for July 31.
The filings, lodged with the Australian Securities and Investments Commission (ASIC), reveal a sharp decline in the company’s financial health. For the 2024 financial year, Congo Brands Australia posted a net loss of $1.42 million, with sales plummeting by approximately 53% to $14.5 million, down from $31 million the previous year. Inventory holdings also saw a dramatic reduction, dropping from $28.9 million to $1.7 million, which included a $4.57 million write-down of unsold stock.
Prime launched in Australia in 2022 with significant fanfare, driven by the massive online followings of its founders, Logan Paul and KSI. Initial demand was so high that Woolworths canceled a planned meet-and-greet with the pair in Perth due to crowd control concerns. However, the brand has faced headwinds, including regulatory issues. Prime Energy contains 200 milligrams of caffeine per 335ml can, exceeding the Australian limit, and carries a warning that it is not suitable for anyone under 18. Several Australian schools banned the drinks from campus in 2023.
The administration follows a wind-up application filed in the Federal Court in June by packaging supplier Orora Group, a move typically taken by creditors seeking to recover unpaid debts. The outcome of the creditors’ meeting will determine whether the business is restructured, sold, or wound down. The ASIC filing notes that Congo Brands Australia depends on its Kentucky-based parent company for financial support and that the U.S. parent had given a “commitment to support the company for the foreseeable future” at the time of filing. This collapse adds to Prime’s international legal challenges, including a 2023 class-action suit in California and a 2024 suit from bottler Refresco seeking $67.7 million in damages.
