​Prime's Fall from Grace: The Bubble Bursts on Viral Success

In a startling turn of events, Prime, once heralded as the pinnacle of viral soft drink brands, has seen its sales plummet in the first quarter of 2024. Data from NIQ reveals a significant drop, with sales dwindling to £12.8 million from the previous year's £26.8 million - a decline of over 50%. This downturn starkly contrasts with Prime's 2023 success story, where it emerged as the fastest-growing food and drink brand, boasting an increase of £148 million in sales.

Founded by YouTube celebrities Logan Paul and KSI, Prime initially captured the market with its premium pricing and limited distribution. However, the brand's Hydration line has taken a severe hit, recording a sales drop of £11.2 million and a 41.1% decrease in volume. Conversely, Prime's Energy line, introduced last spring, has bucked the trend, showing a remarkable 352% sales increase, totalling £1.6 million in the previous quarter.

This sales slump has led to significant discounting by retailers, aiming to offload excess stock. Notably, a Tesco store reduced the price of 500ml bottles of Prime's Blue Raspberry and Strawberry Watermelon flavours to just 31p, an 87.6% markdown from their original launch price of £2.50 in June 2023. The discounting trend is not limited to major retailers; independents have slashed Prime Hydration products' prices.

Industry insiders are not surprised by this shift. A senior convenience source highlighted the fickle nature of the market, emphasising that products rarely maintain relevance beyond a year. The initial scarcity and high demand allowed independents to sell bottles for as much as £10. However, as availability increased, consumer interest waned.

Despite the current challenges, Prime has continued to innovate, introducing new flavors like the limited edition Strawberry & Banana variant, which will be available at Iceland Foods from April 8 for £2. Other retailers, including Asda and Morrisons, continue to sell popular flavours at competitive prices.

Have you noticed these trends in your local stores? Do you think Prime can regain its lost momentum with new variants? Share your thoughts and experiences in the comments below.