Is a sale of Four Loko on the cards?
Alcoholic beverage company Phusion Projects is reportedly exploring the sale of its ready-to-drink (RTD) brand Four Loko, with a rumoured value of US$400 million.
According to Reuters, the RTD brand, which has undergone numerous reformulations over the years due to regulatory pressures, is being considered for sale.
Chicago-based Phusion Projects, which also owns brands such as Mamitas seltzers and Pirate Water, is reportedly working with investment bank JPMorgan on the sale process, according to Reuters sources.
Four Loko launched in 2005 as a caffeinated alcoholic beverage that mixed malt liquor, taurine, guarana and caffeine to create an RTD with an ABV of 14%.
The drink was popular among US college students and gained the nicknames ‘blackout in a can’ and ‘liquid crack’, which accompanied reports of heightened binge drinking and dangerous consequences. This led to it being banned by some universities and states.
In 2010, the Food and Drug Administration (FDA) 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.
Four Loko was banned in the UK in 2014 by The Portman Group after being found in breach of alcohol marketing laws for “encouraging irresponsible consumption”. It was reintroduced to the UK market in 2021 with a new 8.5% ABV formula.
Last summer, it was reported that Four Loko was the leading RTD brand in Scotland. In the 52 weeks to 27 April 2025, Four Loko boasted the largest value share with 34.3%, followed by Dragon Soop (18.2%), AU Vodka (15.8%) and Smirnoff (8.2%).
The brand has also staged a comeback in the US, rebuilding retail distribution across convenience stores and retailers, including Walmart, targeting new Gen Z and international customers.
The flagship Four Loko lineup features 16 flavour variants in 695ml cans, each carrying an ABV of 13.9%.
Line extensions include Pregame shots and Remix non-carbonated wine-based RTDs.
The Spirits Business has reached out to Phusion Projects for comment but has not yet received a response. However, on its website, the company says: “Phusion always has and will always be looking to find the next big thing for drinkers. While Four Loko will always be the core of who we are, we’re also an incubator for the next wave of innovation. Some of these brands include Mamitas Tequila Seltzer, Basic Vodka and Básico Tequila.”
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