The news: Poppi founders Allison and Stephen Ellsworth are looking to disrupt the beverage industry yet again with their newest brand, Jetty, a line of hydration drinks and electrolyte powders that contain less sugar and sodium—and more potassium, fiber, and vitamins—than other products on the market.

Jetty is available online at Target and Amazon, and at Whole Foods Market stores nationwide. Distribution will expand next year to include Target, Sprouts, and Walmart stores.

The opportunity: The Ellsworths are hoping to take advantage of two intersecting trends: robust demand for hydration products and the failure of large consumer packaged goods (CPG) companies like PepsiCo to innovate quickly enough to keep pace with consumer preferences.

• Dollar sales of hydration and electrolyte products rose 20% to $2.6 billion in the 12 months ended October 4, per data from SPINS reported by CNBC.
• 45% of US adults are trying to drink more water or increase their hydration, a 5 percentage-point increase YoY, while 69% consider “staying hydrated” a regular part of their health and wellness routines, according to a Circana survey.

Allison Ellsworth expects Jetty’s core audience to be “millennial moms and Gen Z,” she told CNBC, adding that Gen Z “isn’t relating to … old school brands” like Gatorade and Powerade that are “just not cool.”

The hydration category’s repeat buyer rate currently stands at 62%, per SPINS, suggesting brands that can establish a clear differentiator—better-for-you benefits, fun flavors, more striking packaging—can build strong ties with shoppers.

But a buzzy launch doesn’t guarantee success, as the failure of Alex Cooper’s Unwell Beverages makes clear. Like Jetty, Unwell tried to position itself as an alternative to drinks “made for men, by men, marketed to men,” but struggled to shift spending away from those brands. While Jetty benefits from the Ellsworths’ experience with Poppi, it is entering a category that has one dominant player—Gatorade, with an estimated 60% of the market, per Numerator—and growing competition. The number of new hydration products with annual sales of at least $10,000 is up 41% over the past two years, according to SPINS, as both new and established CPG brands look to capitalize.

Implications for grocery: Jetty’s launch reflects a broader trend in grocery spending, which is that despite food costs ranking among consumers’ top financial pressures, households are willing to pay more for products that they believe offer health and wellness benefits. Half of US consumers planned to spend more on healthy grocery and nutrition at the start of 2026, according to a CivicScience survey. That’s why every single CPG company, whether a startup or an established conglomerate like PepsiCo, is looking to stuff as many better-for-you benefits and buzzwords into their products and marketing. Ultimately, however, the edge lies with challenger brands like Poppi and Jetty that can differentiate themselves from industry mainstays with their branding, product assortment, and marketing.