Packaged in massive 24-ounce tallboys decorated with vibrant camouflage packaging, Four Loko is one of the most notorious party beverages of all time. And it could soon be up for grabs.
According to Reuters, Four Loko’s parent company, Chicago-based Phusion Projects — which also owns Mamitas, Basico Tequila, Pirate Water, and Earthquake — is currently exploring a sale of the brand that could see it valued at approximately $400 million. Three sources close to the matter reported that the company is working with JPMorgan on the deal, though the investment bank declined Reuters’ request for comment. Similarly, Phusion Projects also did not respond to requests.
Four Loko was created in 2005 by Jeff Wright, Jaisen Freeman, and Christopher Hunter, three alums of the Ohio State University, who were inspired by brands like Monster Energy and Sparks. That year, they founded Phusion Projects and launched Four Loko, a caffeinated alcoholic beverage that originally came packaged in 12 ounce cans with 6 percent ABV. In 2008, it was reformulated to its most famous iteration: the 24-ounce tallboy featuring 14 percent alcohol by volume and roughly 150 milligrams of caffeine.
In 2010, the brand was forced to change its formula when the U.S. Food and Drug Administration (FDA) sent warning letters to manufacturers of caffeinated beverage alcohol that said the caffeine in their products was classified as an “unsafe food additive.” Later that year, the current iteration of Four Loko made its debut, sans caffeine, taurine, and guarana, though the alcohol content stayed high, hovering around 12 percent ABV.
Should Four Loko sell, it would be the latest in a string of high-profile acquisitions of boozy RTD brands. In May 2024, Sazerac completed its purchase of BuzzBallz for an undisclosed sum, and in December 2025, ABI confirmed its multi-million dollar acquisition of BeatBox. The two high-ABV RTD brands are particularly popular among the same demographic Four Loko has long attracted: younger consumers.
This is a developing story.
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