Prime Drinks Distributor in Australia Enters Administration

Congo Brands Australia, the company distributing the popular Prime energy and hydration drinks founded by social media influencers Logan Paul and KSI, has entered administration. The Melbourne-based entity was responsible for the drinks' rollout in Australia after its launch in 2022.

Alice Fay Ruhe of The Ruhe Group was appointed administrator for Congo Brands Australia, according to records filed with the Australian Securities and Investments Commission (ASIC). The company's latest financial report, filed in September of the previous year, indicated a decline in sales from $31 million to $14.5 million within a year. For the 2024 financial year, the company reported a net loss of $1.42 million, with debts totaling $7.92 million and cash reserves of just $84,855.

In the period between 2023 and 2024, the company, which is managed by Congo's global holding business based in the U.S., significantly reduced its inventory holdings from $28.9 million to $1.7 million. This reduction included a write-down of stock valued at $4.57 million.

Earlier in June, packaging company Orora Group reportedly filed an application in the Federal Court seeking to wind up Congo Brands Australia.

Prime Energy, one of the brand's offerings, contains 200mg of caffeine per 335ml can, exceeding the 32mg per 100ml limit set by Food Standards Australia New Zealand (FSANZ), which has led to its effective ban in the country. The drink carries a warning that it is unsuitable for individuals under 18. The brand also produces a caffeine-free hydration version, which carries a warning for children under 15. In 2023, several Australian school principals banned Prime Hydration drinks from their campuses, citing concerns about their suitability for students.