By Abigail Summerville
March 4 (Reuters) – The parent company of Four Loko, the canned alcoholic beverage that became a college campus sensation in the late 2000s before being reformulated under regulatory pressure, is exploring a sale of the brand that could value it at around $400 million, according to three people familiar with the matter.
Chicago-based Phusion Projects, the owner of the brand, is working with investment bank JPMorgan on the sale process, the sources said.
JPMorgan declined to comment and Phusion Projects did not respond to requests for comment.
The potential sale underscores how ready-to-drink (RTD) beverages have emerged as a growth category in an otherwise sluggish alcohol market, as beer and wine sales decline and younger people drink less alcohol. In December, Anheuser-Busch InBev acquired RTD party punch maker BeatBox for up to $490 million, and in 2024, Sazerac acquired RTD cocktail brand BuzzBallz, known for its spherical bottles.
U.S. beer, wine and spirits sales declined in 2025, but RTD sales grew 16.4% year-over-year, nearing a $4 billion valuation, according to data from the Distilled Spirits Council of the United States.
Four Loko launched in 2005 as a caffeinated alcoholic beverage – a potent mix of malt liquor, taurine, guarana and caffeine that contained up to 14% alcohol by volume. The drink was popular among college students before some universities and states banned it following a string of hospitalizations.
In 2010, the Food and Drug Administration sent warning letters to caffeinated alcoholic beverage makers including Four Loko saying that the caffeine in their products constituted an “unsafe food additive.” Four Loko reformulated the drink that year, removing caffeine, guarana and taurine.
The brand has since staged a comeback, rebuilding retail distribution across convenience stores and retailers including Walmart, keeping the same bold, camouflage packaging that made it recognizable, while also targeting new Gen Z and international customers.
When it launched a new flavor last year, Phusion Projects’ chief marketing officer at the time said in a press release: “For over a decade, our sales have been leading the (Flavored Malted Beverage) market by embracing bold innovation, unconventional marketing, and a risk-taking attitude that delivers results year after year.”
Phusion Projects owns other alcohol brands including Mamitas, Pirate Water, Basico Tequila and Earthquake.
(Reporting by Abigail Summerville in New York, Editing by Echo Wang and Matthew Lewis)
