Benzinga - by Chris Katje, Benzinga Staff Writer.
Sports and energy drink brand PRIME continues to see strong growth. The addition of another key athlete to its endorsement library could strengthen the brand going forward, putting concern on Coca-Cola Inc (NYSE:KO) and PepsiCo (NYSE:PEP) — two companies that have dominated the sports drink market for many years.
What Happened: One month after announcing the company hit one billion lifetime units sold, PRIME is back with another company announcement that could show off its strong growth profile and competition to legacy beverage companies.
On Monday, PRIME announced it has signed Kansas City Chiefs quarterback Patrick Mahomes as one of the company's PRIME Hydration Athletes.
"As a PRIME athlete, Mahomes will collaborate with the brand's team across social media, special events, charitable activations and more," the company said.
Mahomes is one of the top players in the NFL, winner of two Super Bowls, two Super Bowl MVPs and two regular season MVP awards in his short career.
"PRIME is a disruptive brand that has taken over the beverage industry since its first launched. They are gamechangers, and that's exactly what I strive to be on the field," Mahomes said. "Our partnership is a winning play, merging innovation and excellence, setting a new standard both on and off the field."
PRIME was launched in January 2022 by popular YouTubers Logan Paul and KSI. The brand has become one of the fastest-growing beverage brands.
"It's a privilege to welcome Patrick Mahomes to the PRIME family and we can't wait for you to see what we have planned in 2024," Paul and KSI said.
Related Link: 5 Things You Might Not Know About Kansas City Chiefs QB Patrick Mahomes
Why It's Important: The addition of Mahomes to the brand adds to a lineup that includes soccer star Erling Haaland (Manchester City), NHL star Auston Matthews (Toronto Maple Leafs) and several UFC fighters like Alexander Volkanovski and Israel Adesanya.
PRIME also has deals in place with the UFC, soccer teams Arsenal, FC Barcelona and Bayern Munich and MLB team the Los Angeles Dodgers.
In its first year, PRIME hit $250 million in retail sales. The company has hit $1.2 billion in internal sales through the end of 2023. Key retail stores like Target, GNC, Kroger and Walmart carry the brand.
Its caffeinated beverage, PRIME Energy, launched in 2023.
PRIME competes with Coca-Cola and Pepsi in both sports drinks and energy drinks. Coca-Cola owns the Powerade, BodyArmor and Vitamin Water brands. It also has a strong position in the energy drink sector, thanks to its equity stake and distribution of Monster Beverage (NASDAQ:MNST).
PepsiCo owns Gatorade, which dominates the sports drink market. It also made a major investment in fast-growing energy drink brand Celsius Holdings (NASDAQ:CELH).
Data shared by Darren Rovell shows PRIME with growth outpacing the beverage giants. Here's a look at the last 52 week sales of top sports drink brands through Oct. 8, 2023.
Mahomes’ teaming up with PRIME could be a touchdown for the drink brand. It may also put further pressure on Coca-Cola and Pepsi moving forward.
Read Next: Logan Paul’s PRIME Energy Drink Answers Chuck Schumer’s Call For An FDA Investigation
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