Poppi founders launch Jetty, a new hydration brand taking on Gatorade

Jetty will offer five flavors of ready-to-drink electrolyte beverages and ready-to-mix packets, available at Whole Foods stores and online at Target and Amazon. The Ellsworths are self-funding the venture with $2.5 million; PepsiCo bought their previous brand, Poppi, for $1.95 billion in 2025.

Poppi disrupted the soda market with prebiotic fiber, low sugar and Gen Z-focused marketing. Jetty seeks to apply a similar approach to hydration, targeting consumers who want a boost without the high electrolyte and sugar levels of traditional sports drinks. Jetty beverages contain 100 milligrams of sodium, 310 milligrams of potassium and 100 milligrams of magnesium per 15.2-ounce bottle or 15-gram packet, along with B vitamins, 3 grams of fiber and 6 grams of sugar. They do not use artificial sweeteners or dyes, the founders say. By comparison, a 20-ounce bottle of Gatorade Thirst Quencher has about 270 milligrams of sodium, 80 milligrams of potassium and 34 grams of sugar.

“No one has really created a product for just everyday hydration — literally everyday hydration for normal people,” Allison Ellsworth, Jetty’s chief brand officer, told CNBC. “Like I woke up this morning, I didn’t run a marathon.”

Ellsworth said her own use of a GLP-1 medication, which can reduce thirst, inspired the brand. About 44% of GLP-1 users report consuming more functional beverages, according to an EY-Parthenon survey of more than 3,600 current or former users. Ellsworth sees a broader audience in millennial moms and Gen Z; she said Gen Z does not relate to legacy brands like Gatorade, which she called just not cool.

Dollar sales of hydration and electrolyte products rose 20% to $2.6 billion in the 52 weeks to Oct. 4, according to data from SPINS. The number of new items in the category with annual sales of at least $10,000 has increased 41% over two years, according to SPINS. Big food and beverage companies are also moving: Kraft Heinz debuted Capri Sun juice pouches and Kool-Aid packets with electrolytes this spring, Pepsi revamped Gatorade in April, and Keurig Dr Pepper’s Electrolit posted 40% retail sales growth in the third quarter.

Ellsworth said she believes Pepsi has missed the mark on advertising to Gen Z consumers across its portfolio. “I don’t think [Pepsi] gets it, but what they do get is that the movement is changing, and they think that just by taking dyes out or doing 90% less sugar, they’re going to capture this audience,” she said. “But that is very big corporate thinking.”

PepsiCo’s October filing estimated the fair value of potential performance-based payments to Poppi’s prior owners at $12 million. At the time of the deal, Pepsi promised an additional $300 million if Poppi hit certain targets by the third quarter of 2027. The Ellsworths declined to comment on the filing.

Jetty’s founders said they have learned lessons from past mistakes. Poppi paid $8.9 million to settle class-action litigation alleging false advertising over its gut healthy claims, and Ellsworth said three different claims lawyers have signed off on Jetty’s packaging. Ellsworth said Jetty will likely raise money in 2027 and that investors would probably look less like traditional venture capitalists, with the brand considering investors who have access to celebrities.