Four Loko is a brand synonymous with controversy. The fruity malt liquor drink, which first hit convenience store shelves in 2005, was loaded with caffeine, alcohol, and stimulants guarana and taurine (the ingredients that make up the Four in Four Loko). The dangerous mix of caffeine and booze caused a spate of lawsuits with people claiming the drink was responsible for the death of a 15-year-old boy and caused a man to run into traffic and get hit by a car.
Phusion is on pace to sell 80 million cans of Four Loko in 2016
It was enough of a PR hit for Four Loko--which is owned by Chicago-based Phusion Projects--that it agreed to remove the caffeine from its products all together, a sign that the once popular party drink was nearing its demise.
But even as Four Loko and Phusion Projects have kept a low profile (the company steers away from traditional advertising like billboards or commercials, and it rarely does press interviews), the business is still humming along, according to co-founder Jaisen Freeman. Caffeine-less Four Lokos are sold in all 50 US states and in 29 countries across the world. Phusion Projects' US business is up about 20% this year, and its international business is up "a couple thousand percent" as Phusion ramps expansion around the globe, Freeman said.
In fact, Freeman says the company will sell around 80 million cans of Four Loko worldwide in 2016.
"(Four Loko) is a brand of pop culture; it's an iconic brand," said Freeman during an interview at Phusion's River North headquarters. "It's here to stay."
Along with the flagship Four Loko product, Phusion also sells Moskato Life, a flavored malt beverage similar to Moscato wine; Signature Cocktails, malt liquor-based ready to drink cocktails like Long Island Iced Tea and Sex on the Beach; Earthquake, a "high gravity lager;" and Four Loko Spirits, a 70% proof hard alcohol served chilled as a shot. It comes in Cinnamon, Apple Pie, and Lemon Drop flavors.
Last year the company released a new flavor of Four Loko--Four Loko Gold--which Freeman says customers have gravitated to because of its "ambiguous" flavor.
"The consumer gets to figure out what it is," he said.
Phusion is eyeing more product expansion in 2017. Freeman wouldn't reveal the specific details of the new beverages, but said the company has been working with bartenders to come up with "a couple of new brands" that will launch next year.
But that's not to say everything has gone swimmingly for Phusion in recent years. The company scrapped its frozen cocktail drink Island Squeeze after a sluggish consumer response, and it ditched an initiative, called Innovative Brewing, to acquire other alcohol companies. Freeman said the company opted to develop new brands internally, rather than acquire companies.
Freeman said Phusion Projects has around 100 employees, with 25 based in its Chicago headquarters.
The company has relied heavily on social media and event marketing to reach its customers. Phusion's products has over a million Facebook likes, including more than 830,000 for Four Loko. Phusion also sponsors events like ComplexCon and hosts Lollapalooza after parties. The goal, Freeman says, is to find ways to connect with its target demographic (21-26 year olds), and find innovative ways to market the brand.
Freeman said Phusion plans to continue growing abroad. It's currently selling Four Loko and other products in Mexico, Canada, South America, Europe and Asia, and it expects to be in another 6-7 countries by next year.
"We’re starting to have more of a global view on things," he said.
