Logan Paul’s Prime Hydration is losing energy.
The drinks brand, which was founded in 2018 by a social media influencer turned boxer, and its parent company are being sued for $68 million for allegedly breaching a manufacturing agreement.
Bottler Refresco Beverages says Prime Brands and Congo Brands breached their April 2023 contract by failing to purchase previously committed minimum product volumes from Refresco of at least 18.5 million cases per year over three years.
The lawsuit, filed Aug. 2 in Delaware Chancery Court, alleges that Refresco had to spend “considerable time and expense” modifying its equipment to exclusively fit Prime’s unique bottle shape.
Prime, a Louisville, Kentucky-based company co-founded by Paul Olayinka Williams “JJ” Olatunji and Olajide Olayinka Williams Olatunji (known as KSI), who are not defendants, has made global headlines since going public in 2022.
Prime has signed celebrity endorsement deals with Kansas City Chiefs quarterback Patrick Mahomes, WWE star Cody Rhodes and New York Yankees strongman Aaron Judge.
Paul boasted that the company generated $250 million in retail sales and $110 million in total organic sales in its first year.
By the time Refresco was ready to invite Prime to test the new facility in March 2024, Prime allegedly refused to participate. The following month, Prime allegedly refused to submit an initial order to begin commercial production.
The brand has been the subject of a class action lawsuit over its ingredients and alleged false advertising, Senator Charles Schumer of New York has asked the Food and Drug Administration to investigate Prime in 2023 for dangerously high caffeine content, and the United States Olympic and Paralympic Committee recently sued Prime for trademark infringement.
Congo and KSI did not respond to requests for comment, and Rogan, through his representative, declined to comment.
