The supplier of Prime, the energy drink company co-founded by controversial YouTuber Logan Paul, is suing the beverage company for $68 million. Refresco, the supplier, alleges that Prime Hydration breached a 2023 contract by cutting ties when demand for the energy drink plummeted, leaving Refresco owed at least $67.7 million.
The initial contract between Prime and Refresco required Prime to order a minimum of 18.5 million cases annually over three years, totaling 55.5 million cases. Refresco invested in an exclusive production line for the drinks based on the high demand Prime was experiencing at the time. However, by 2024, sales of Prime had fallen well below expectations, leading to the termination of the contract.
In addition to the lawsuit from Refresco, Prime is facing multiple other legal challenges. The US Olympic and Paralympic Committee has sued Prime for mismarketing itself as affiliated with the Games, and a class-action lawsuit was filed over mislabeling caffeine content. Prime has filed motions to dismiss these lawsuits.
Despite the legal challenges, Prime was profitable in 2023 and on track to surpass $1.2 billion in revenue. The company's success was attributed to marketing stunts, big-name sponsorships, and limited edition flavors that created high demand for the product.
Logan Paul responded to the lawsuits in an April 2024 video, denying the claims and stating that the allegations regarding the presence of PFAS in the drink were related to the bottle manufacturing process, not the drink itself.