The beverage industry is no stranger to controversy and legal battles, and the recent lawsuit filed by Refresco against Congo Brands, owner of Prime, adds another chapter to this ongoing saga. Prime, a line of hydration and energy drinks founded by YouTube stars Logan Paul and KSI, burst onto the scene in 2022 with viral success. However, the brand has since faced a series of challenges, including allegations of high caffeine content and the presence of „forever chemicals“ in its drinks.
Refresco’s lawsuit against Congo Brands stems from an alleged breach of agreement regarding the production of Prime drinks. According to the filing in Delaware, Refresco is seeking $67.7 million from Congo Brands for backing out of a deal to produce the hydration drink. The agreement between the two companies included the establishment of a production line for plastic bottles at Refresco’s facility in Trusedale, Missouri for a period of three years.
The lawsuit claims that Congo Brands „repudiated“ the agreement and informed Refresco that it would be moving away from their facility. Refresco, as one of the largest bottlers in the U.S., invested significant time and money into upgrading its manufacturing line with new equipment to produce the custom Prime bottles. The agreement stipulated that Congo Brands would produce 55.5 million cases of Prime drinks over three years, with penalties for failing to purchase 90% of the bottles each year.
Refresco argues that the $67.7 million sought in the lawsuit is necessary to recoup the fees incurred in upgrading its facility to meet the demands of the Prime agreement. The bottler also highlighted Prime’s declining sales over the past year, attributing it to a „fading social media buzz“ for the drink. In the U.K., sales of Prime reportedly declined by 50% year-over-year in April of this year, according to Nielsen data cited by Yahoo.
The legal battle between Refresco and Congo Brands underscores the complexities and challenges of the beverage industry, particularly in the realm of celebrity-backed brands. As Prime navigates these legal and reputational hurdles, it remains to be seen how the brand will weather the storm and regain its footing in the competitive market.