REPORT: Four Loko Is Up for Sale, Seeking $400 Million Deal Brokered By JP Morgan

(Photo: AP Photo/Elaine Thompson, file)

Four Loko, the controversial, brightly-colored icon of late-2000s drinking culture, is mulling over a sale that could value the brand at around $400 million, according to a report from Reuters.

Sources told the outlet that brand owner Phusion Projects is working with investment bank JPMorgan to find a buyer for the flavored malt beverage. Apart from Four Loko, Phusion is best known as the owner of Mamitas Tequila Seltzer, Basico Vodka and Earthquake High Gravity Lager. The Chicago-based company was founded in 2005 and employs around 90 people worldwide.

There’s no news yet on a time frame for the sale, nor have any potential buyers been named. Both JPMorgan and Phusion Projects declined Reuters’ request for comment.

Four Loko was founded in 2005 by Ohio State University alumni Chris Hunter, Jaisen Freeman and Jeff Wright. Inspired by cocktails like Vodka Red Bull and brands like Monster Energy, the original — and most infamous — version of the Four Loko recipe combined a malt alcohol base with caffeine, taurine and guarana. Though an instant hit, the brand faced legal scrutiny following reports of hospitalizations and injuries across the country. A looming FDA ban forced the brand to remove caffeine from its recipe in December 2010.

Though not nearly as popular as it once was, Four Loko has made something of an unexpected comeback over the past few years. According to the brand, annual revenue rose by 64% between 2020 and 2025, in part thanks to collaborations with Gen Z-favorite brands.  In 2022, Four Loko teamed up with Warheads Sour Candy for a limited-edition “Cosmic Punch” flavor, and later that year made its debut at NASCAR alongside Alpha Prime Racing.

So why sell now? If you ask us, Phusion Projects sensed the beginnings of a lucrative trend.

Ready-to-drink beverages have been selling like hotcakes over the past few years, spurring a series of buyouts from major industry players. BuzzBallz made headlines in 2024 when it sold to Sazerac for an estimated $500 million; little over a year later, Bud Light-owner AB InBev announced its acquisition of BeatBox for $490 million.

With luck (and some convenient forgetfulness of past controversies), Four Loko may be the next RTD brand to snag a nine-figure deal.