The founders behind the prebiotic soda brand Poppi are launching a new beverage startup named Jetty, stepping directly into a competitive hydration market dominated by PepsiCo’s Gatorade, CNBC reported.
Launching Monday at Whole Foods grocery stores and online through Target and Amazon, Jetty arrives with five initial flavors and a line of ready-to-mix electrolyte packets. Allison and Stephen Ellsworth funded the venture with $2.5 million of their own capital after selling Poppi to PepsiCo for $1.95 billion in 2025.
The Bottom Line:
- Dollar sales for the broader hydration and electrolyte category climbed 20% to $2.6 billion over the 52 weeks ended Oct. 4, according to SPINS data.
- PepsiCo’s Gatorade commands roughly 60% of the U.S. sports drink category, backed by Numerator metrics.
- Jetty is entering the market with $2.5 million in self-funding, planning its first formal capital raise in 2027.
Jetty Targets Everyday Consumers Seeking Lighter Hydration
Jetty aims its formulas at everyday consumers who want a lighter hydration boost without the heavy electrolyte concentration or sugar load of traditional options.
“No one has really created a product for just everyday hydration — literally everyday hydration for normal people,” Allison Ellsworth told CNBC. “Like I woke up this morning, I didn’t run a marathon.”
The product conception stemmed partly from Allison Ellsworth’s personal experience after stepping back from day-to-day operations at Poppi. Ellsworth observed she was struggling with fluid intake, noting that she physically struggles getting liquid into her body.
Because medications such as Ozempic and Mounjaro can suppress thirst while amplifying the need for proper hydration to mitigate side effects like nausea, functional beverage consumption has surged. EY-Parthenon survey data shows that 44% of GLP-1 users report consuming more functional drinks.
Jetty’s formulation features 100 milligrams of sodium, 310 milligrams of potassium, and 100 milligrams of magnesium per 15.2-ounce bottle or 15-gram packet, alongside B vitamins, 3 grams of fiber, and 6 grams of sugar. By comparison, a 20-ounce Gatorade Thirst Quencher contains 270 milligrams of sodium, 80 milligrams of potassium, and 34 grams of sugar.
Jetty Enters a Growing Single-Serve Powder Segment
Jetty enters a crowded segment characterized by rapid expansion in single-serve powders, championed by Unilever’s Liquid I.V. and independent brands like LMNT. SPINS tracking indicates that new items in the category reaching at least $10,000 in annual sales have increased 41% over the past two years.
At the same time, ready-to-drink sports beverage sales have contracted, with Numerator figures showing unit sales falling 9.1% between 2022 and 2026. Major conglomerates have absorbed heavy corrections in the space, as reflected in Coca-Cola writing down the value of BodyArmor by more than $1.7 billion following its 2021 acquisition.
PepsiCo has adjusted its own playbook, rolling out a brand overhaul for Gatorade in April to capture morning consumption and afternoon walks. Yet Allison Ellsworth argued that legacy conglomerates struggle to connect with younger demographics.
“Gen Z just isn’t relating to these old school brands, the legacy of the Gatorades and the Powerades,” she told CNBC.
Past regulatory challenges have also shaped Jetty’s rollout. Poppi previously paid $8.9 million to settle class-action litigation alleging false advertising regarding gut health claims. To avoid similar pitfalls, Allison Ellsworth noted that three different claims lawyers have reviewed Jetty’s packaging.
PepsiCo Revises Poppi Valuation as Jetty Plans Investment
Under PepsiCo’s current ownership, Poppi’s performance has trailed initial projections. In an October regulatory filing, PepsiCo estimated the fair value of potential performance-based payments to Poppi’s prior owners had dropped to $12 million from an initial $300 million target milestone set for 2027. The Ellsworths declined to comment on the filing when interviewed by CNBC.
Looking ahead, Jetty plans to evaluate external investment partners in 2027. Rather than leaning on traditional venture capital firms offering standard cash infusions, the founders intend to target strategic backers who can provide direct celebrity access and brand alignment.
“I want to bring in investors that bring value,” Allison Ellsworth told CNBC.
Disclaimer: The information provided in this article is for educational and market analysis purposes only and does not constitute financial, investment, or legal advice. Always consult with a certified financial professional before making investment decisions.
