Tea Market Expansion Drives The Ryl Company’s $20 Million Series C Funding Round
The Ryl Company, the parent organization behind the rapidly growing ready-to-drink tea brand Ryl Tea, has announced the successful completion of a $20 million Series C growth equity financing round. The investment was led by Purchase Capital through its Ryl Growth Partners special purpose vehicle (SPV) and marks a significant milestone in the company’s efforts to expand its footprint within the evolving beverage industry.
The fresh capital will be used to support the next phase of growth for the company, including expanding retail distribution, strengthening its Direct Store Delivery (DSD) network, accelerating product innovation, and investing in talent across key functions such as operations, sales, marketing, and brand development.
The funding arrives at a time when Ryl Tea is experiencing exceptional momentum and gaining recognition as one of the fastest-growing brands in the ready-to-drink tea segment. Industry analysts and beverage executives are increasingly describing the current transformation of the tea category as the rise of “Modern Tea,” a movement that mirrors the disruption already seen in categories such as soft drinks, energy beverages, and hydration products.
Over the past decade, consumer preferences have undergone a dramatic shift. Shoppers, particularly younger consumers, have gravitated toward products that offer healthier ingredients, reduced sugar content, functional benefits, and stronger connections to lifestyle and culture. This trend has fueled the emergence of modern beverage brands that have successfully challenged legacy players across multiple categories.
Tea, despite being one of the largest and most widely consumed beverage categories in the United States, has historically been slower to undergo this transformation. However, recent market performance suggests that the category is entering a new phase of growth driven by innovation and changing consumer expectations.
According to retail data from Circana, Ryl Tea achieved an impressive 157% growth rate during the measured period, significantly outperforming the broader canned and bottled tea category, which declined by 1.8% during the same timeframe. The data highlights a growing divergence between innovative emerging brands and traditional tea products.
Industry observers note that for the first time, the dollar gains generated by emerging tea brands are exceeding the dollar losses experienced by legacy brands. This dynamic resembles patterns previously seen in categories such as modern soda and modern energy drinks before they experienced major expansion and market disruption.
The company believes these trends indicate a meaningful shift in consumer demand, particularly among younger demographics seeking beverages that align with modern health and wellness priorities. Products with zero sugar, cleaner ingredient profiles, and functional benefits continue to attract consumers who are increasingly conscious of what they drink.
One of the most compelling aspects of the tea category is its already widespread consumer acceptance. Ready-to-drink tea enjoys household penetration of approximately 81%, making it one of the most established beverage categories in the country. Yet much of the category’s traditional consumer base has historically consisted of Generation X and Baby Boomer shoppers.
Ryl Tea has distinguished itself by attracting a different audience. The brand has developed strong appeal among female Gen-Z and Millennial consumers, helping introduce new shoppers to the tea aisle and expanding the category’s relevance among younger generations.
Blodin Ukella, Founder and Chief Executive Officer of The Ryl Company, emphasized that the company’s mission is not to replace the brands that built the category but rather to expand it by introducing products that resonate with modern consumers.
“We have enormous respect for the brands that built this category over the last several decades because they helped make tea a staple in American households,” Ukella said. “Our goal is to bring a new generation of consumers into the category by creating products that reflect how people want to drink today. We are incredibly grateful to our employees, retail partners, distributors, investors, and consumers who have supported our vision. This investment allows us to continue building on that momentum.”
The financing follows a period of substantial operational growth for the company. During the past two years, Ryl Tea has focused heavily on building a nationwide Direct Store Delivery network, an infrastructure advantage that remains difficult for many emerging beverage brands to achieve.
A robust DSD network enables products to reach retail shelves more efficiently, improves inventory management, and strengthens relationships with retailers. By establishing this infrastructure early, Ryl has positioned itself among a select group of emerging beverage companies capable of scaling nationally while maintaining strong execution in stores.
In addition to expanding its distribution capabilities, the company has also pursued strategic partnerships designed to strengthen its product portfolio and consumer appeal. One of the most notable developments was the recent announcement of a multi-year licensing agreement with The Hershey Company.
The partnership will bring the first zero-sugar iced tea products inspired by Jolly Rancher flavors to market. By combining the iconic candy brand’s recognizable flavor profiles with Ryl’s zero-sugar formulation expertise, the collaboration aims to create unique products that appeal to both existing tea drinkers and new consumers seeking innovative beverage experiences.
Nicholas J. Singer, Founder and Managing Partner of Purchase Capital, expressed confidence in the company’s leadership team and its ability to capitalize on changing market dynamics.
“The Ryl leadership team has built a brand and product platform that resonates strongly with consumers,” Singer said. “Modern Tea represents one of the most exciting opportunities in the beverage industry today, and we believe Ryl is exceptionally well positioned to lead this emerging category.”
Company leadership views the new funding round as a launching point rather than a culmination of recent achievements. Leigh Feuerstein, Co-Chairman of The Ryl Company, noted that the organization remains focused on long-term growth and continued innovation.
“This round is fuel, not a finish line,” Feuerstein said. “Our team has worked hard to earn the trust of retail partners, expand our DSD capabilities, and build meaningful strategic relationships, including our partnership with The Hershey Company. Those efforts have created a strong foundation for the future.”
Looking ahead, the company plans to continue investing in product development and category innovation. Leadership has already indicated that a significant innovation pipeline is scheduled for introduction during the first quarter of 2027, although details remain under wraps.
As consumer demand continues shifting toward healthier, lower-sugar beverages, The Ryl Company believes it is well positioned to capitalize on the growing Modern Tea movement. With fresh funding, expanding distribution capabilities, strategic partnerships, and a growing base of loyal consumers, the company is preparing for what it expects to be its most significant growth chapter yet.
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