Kool-Aid Kraft Heinz to launch electrolytes without artificial colors

Kool-Aid is launching electrolyte packets made without artificial colors, aimed at reaching consumers who want to hydrate, but not at the prices of Gatorade or Liquid IV.

The new product is part of the parent company Kraft Heinz broader plan to modernize its portfolio and reverse a nearly decade-long decline in sales. Its biggest brands, including Capri Sun, Oscar Mayer and Kraft Mac & Cheese, struggled as consumers sought fresher, more nutritious options to feed and hydrate their families.

One year shy of its 100th anniversary, Kool-Aid sits – one way or another – in the younger part of Kraft Heinz’s portfolio. But its relative youth and iconic mascot haven’t shielded the brand from many of the problems facing the company’s older brands, such as Maxwell House and Philadelphia.

Earlier this year, Kraft Heinz announced it was suspending its previously announced plan to split the company in two. CEO Steve Cahillane said many of the company’s problems were “fixable” and pledged to invest $600 million to fuel the turnaround of its U.S. business.

Kool-Aid is part of this plan. Brand investments are expected to increase 70% this year compared to 2025, according to Kraft Heinz.

Part of that money went toward developing and launching Kool-Aid Hydration. The range will roll out to retailers later in May with three flavors: Fruit Punch, Grape Lemonade and Blue Raspberry.

“We believe this is the right step to take to modernize the brand and ensure the product offering remains as relevant as the brand equity and cultural currency,” said Caroline Boulos, president of hydration, desserts and meals at Kraft Heinz.

The U.S. market for powdered concentrates has exploded in recent years. The category, which covers all soluble powder mixes and tablets from Kool-Aid to Nestlé’s Nuun, has more than tripled in the past five years to more than $4.6 billion in sales, according to data from Euromonitor International.

Much of this growth comes from the rise of single-serve electrolyte sticks, popularized by Liquid IV, now owned by Unilever. PepsiCo also introduced single-serve sachets and tablets under its Gatorade and Propel brands. And then there are a number of smaller newcomers such as LMNT and Unwell Hydration from podcaster Alex Cooper.

But Kraft Heinz sees an opportunity for Kool-Aid to make its mark in the electrolyte powder category. Most of the options currently available to consumers are “very performance-oriented” and “very intense,” according to Boulos.

“Consumers find a lot of these offerings too salty or bitter, and what’s more, it’s a very premium subset of the category, so it’s not accessible to more consumers,” she told CNBC.

Kool-Aid Hydration launches at an average price of $4.99 for a six-pack of sticks. This price is several dollars lower than the typical cost of the same size single-serve packets of Gatorade and Liquid IV.

And unlike electrolyte drinks created for athletes, Kool-Aid Hydration targets young adults looking to meet their daily hydration goals. As a result, the taste is more “accessible,” according to Boulos.

She described the flavor as being “very recognizable” like Kool-Aid, although sodium, potassium, calcium and magnesium are also noticeable.

“You get a little bit of that salinity from the presence of electrolytes, but it’s not overwhelming or overwhelming,” Boulos said.

Kool-Aid does not sell the Hydration line solely on electrolytes. The brand also tries to attract buyers by highlighting what is not in the packages.

Kool-Aid Hydration does not use artificial colors, part of Kraft Heinz’s broader commitment to phase out synthetic colors by the end of 2027. Under the influence of Health and Human Services Secretary Robert F. Kennedy Jr. and his “Make America Healthy Again” platform, the Trump administration has pressured Big Food to phase out petroleum-based synthetic colors, although the Food and Drug Administration has not yet revoked the authorization for any of them.

In addition to lacking artificial colors, Kool-Aid Hydration also contains no sugar.

“It’s a brand that people love, but from a product perspective, we took a step back and talked to consumers about why they stopped buying the brand, and what we heard was that they were turning to other alternatives that better suited their needs,” Boulos said. “It could be that they were looking for specific benefits or there were obstacles over time. [consumers] try reducing sugar intake or reducing certain ingredients.

Kraft Heinz takes this approach elsewhere in its portfolio.

In April, it unveiled Capri Sun Hydrate, containing electrolytes and vitamin E. Its packaging also contains five grams of total sugar per packet, less than half the sugar found in a typical Capri Sun.

And in March, the company introduced Kraft PowerMac, with 17 grams of protein and six grams of fiber.

“All of our innovations remain truly rooted in consumer insights, and consumers tell us they are looking for their food and beverages to do more for them,” Boulos said. “We really see an opportunity for traditional brands to play a role in this space, and the response has been overwhelmingly positive.