Congo Brands Australia enters administration as sales slump, winding-up case looms

Congo Brands Australia Pty Ltd, the Australian business responsible for distributing the Prime beverage range, has entered voluntary administration as a creditor’s winding-up application proceeds in the Federal Court. Alice Ruhe of The Ruhe Group was appointed voluntary administrator on 7 July 2026.

The Melbourne-based company distributes Prime, the hydration and energy-drink brand promoted by internet personalities Logan Paul and KSI. Its broader portfolio has also included other products associated with US-based Congo Brands, including Alani Nu and Lunchly.

The appointment follows a significant deterioration in Congo Brands Australia’s financial performance. Its latest publicly reported financial statements showed revenue falling to approximately $14.5 million in fiscal 2024 from about $31 million a year earlier. The company recorded a net loss of approximately $1.4 million and reported liabilities of about $7.9 million, against cash holdings of less than $85,000.

Inventory fell to approximately $1.7 million from $28.9 million over the same period. The accounts included a stock writedown of about $4.6 million, indicating that inventory was no longer expected to be sold at its previously recorded value.

The financial statements said the Australian company depended on support from its US-based parent to meet its obligations and had received a commitment that the parent would continue providing assistance for the foreseeable future. The administration will test whether that support remains available and whether the Australian operation can be restructured, recapitalised or transferred to another distributor.

The appointment also comes after Orora Group commenced Federal Court proceedings seeking to wind up Congo Brands Australia. A hearing is scheduled for 31 July, although the administration may affect how the application progresses.

Ruhe will investigate the causes of the company’s financial difficulties, assess its relationship with the wider Congo Brands group and report to creditors on whether they would receive a better return through a deed of company arrangement or liquidation. Details of the company’s current trading position, employee numbers and total creditor claims have not yet been released.