Coca-Cola Acquires PRIME Hydration for 10 Billion Dollars 🍻
Introduction
On August 25, 2018, Logan Paul and KSI would begin the beef that would shake the internet. From one boxing match to the next, the tie would eventually lead to KSI taking the crown against the second title match one year later.
Fast forward to 4 days after the start of 2022, they’ve begun an alliance in the form of PRIME HYDRATION.
WHAT??????
PRIME hydration is a sports drink company geared toward everyday individuals. They advertise being able to “fuel any lifestyle” and cultivate a business that can compete with the biggest beverage companies in the world.
They’re underdogs that are ready to take on the competition. Over a year, they've worked hundreds of hours to formulate a superior product, establish relationships with retailers, and build a team dedicated to the product.
With their sporty colors, celebrity endorsements, and obsessed social media followers, PRIME is on track to potentially capitalize on their respective niches.
Outlook
By identifying Gatorade as their made competitor, Logan and KSI are essentially remaking THEIR cycle.
With hopes of one-day striking gold through acquisition, they’re trying to beef until they become business partners.
Sounds familiar doesn’t it??
With over 700k followers on Instagram and 3 million+ orders on release day, the clickbait title may not seem so out of reach.
Past Success
Creator sports drinks aren’t a new genre and have been created by the likes of The Ace Family, Sway Boys, Nelk Boys, Try Guys, and Emma Chamberlain.
But none of their drinks have picked up steam to the point where they’re classified as mainstream beverages.
Introducing… BODY ARMOUR!!
Started in 2011 by Mike Repole, Body Armour is a beverage that’s very similar to PRIME.
Over the years, they consistently grew their brands by partnering with influential sports stars and funneled traffic to eventually capture 10% of the sports drink market.
In the beginning, major beverage players began buying small stakes in the brand, but as it grew it became apparent that its 250 million dollars in revenue were no joke.
As a result, it was bought Coca-Cola for 5.6 billion dollars.
Now not to say that PRIME will be bought indefinitely, but the more you look, the more you see.
PRIME Hydration has already established itself on social media platforms and has rallied more followers in a week than the lifetimes of companies such as Powerade and Gatorade.
With the right leadership and execution, PRIME could potentially become a household name.
Where Does Prime Stand??
As a supposed “energy drink” most would believe that PRIME’s target market is athletes and individuals who are seeking beverages to supplement an active lifestyle.
While that may be true, it’s not their primary motive or market.
As mentioned earlier, PRIME wants to be something broader than simple hydration when keeping active. PRIME wants to be something that you can drink regularly and feel replenished after a long day of work.
They want to be something consumers flock to when seeking hydration or something to drink.
This broadens their market and exposes them to people of all backgrounds. For example, Logan captures the lifestyle market while KSI captures the gaming community.
This is advantageous in the fact that people that also want to drink PRIME as their primary sports beverage can as well.
It reflects their broader goal of making PRIME Hydration a staple in everyone’s everyday life.
Future of PRIME
Now, where do I see PRIME in 5 years??
Creator products as a whole haven’t expanded past the creator’s audience. Whether that be Chamberlain Coffee or the Ace Family’s Silly Juice, natural consumers don’t drive the majority of their growth.
For a brand like PRIME to succeed in the beverage industry, they’ll need to be able to sell to people that don’t know what PRIME is.
This means Logan and KSI not posting about PRIME on their IG pages every day for the next 2 years.
Instead focus on distribution, marketing, sales, product, and other aspects that define a successful business.
Strengthening a core foundation and system that can drive organic growth will be essential for PRIME’s longevity.
THANKS FOR READING⚡️
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— Tristian Xu
