Poppi founders are going after PepsiCo's Gatorade with new beverage startup Jetty

Summary

• Founders Allison and Stephen Ellsworth launched Jetty, a new hydration brand, after selling their previous company Poppi to PepsiCo for $1.95 billion in 2025.
• Jetty products, including drinks & electrolyte packets, became available at Whole Foods on Monday, with online sales at Target & Amazon.
• The venture is self-funded with $2.5 million & directly competes against PepsiCo's Gatorade, which holds approximately 60% of the U.S. sports drink market.
• Jetty targets everyday hydration for normal people rather than athletes, addressing needs of those on GLP-1 medications who experience reduced thirst.
• The brand aims to attract millennial moms & Gen Z consumers who find legacy sports drink brands unappealing.
• Dollar sales of hydration & electrolyte products rose 20% to $2.6 billion over the 52 weeks ended Oct. 4, while new items in the category increased 41% over the last two years.
• Competitors including Kraft Heinz, Pepsi, & Keurig Dr Pepper have introduced electrolyte-enhanced products, increasing competition for shelf space.
• Jetty will sell single-use powders & ready-to-drink bottles, capitalizing on the faster growth of powder mixes compared to shrinking ready-to-drink sports beverage sales.
• Initial flavors include watermelon, orange mango, fruit punch, black raspberry, & white cherry, each containing 100mg sodium, 310mg potassium, 100mg magnesium, 3g fiber, 6g sugar, & B vitamins.
• Products contain no artificial sweeteners or dyes, distinguishing them from traditional sports drinks that often have higher sugar & sodium levels.
• PepsiCo estimates potential performance-based payments to Poppi's prior owners at $12 million, down from a promised $300 million bonus if specific targets were met by Q3 2027.
• Jetty avoided Poppi's $8.9 million class-action settlement regarding false advertising claims by securing sign-off from three claims lawyers on its packaging.
• The founders plan to raise capital in 2027, seeking investors with celebrity access rather than traditional venture capital firms.
• Jetty is developing a lemon-lime flavor, the original Gatorade taste, to expand its lineup after launching with flavors the founders personally prefer.