The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

The Ryl Company, maker of the rapidly growing ready-to-drink iced tea brand Ryl Tea, has closed a $20 million Series C growth equity financing round led by Purchase Capital through its Ryl Growth Partners SPV.

The investment will support the company's next phase of expansion, including continued retail distribution growth, further development of its Direct Store Delivery (DSD) network, product innovation and investments across sales, operations, and brand-building functions.

The funding arrives amid accelerating momentum for Ryl Tea and growing industry attention around what some observers are calling the 'Modern Tea' movement – a shift toward better-for-you tea products that mirrors the transformation seen in categories such as soda, energy drinks and hydration beverages.

According to Circana data cited by the company, Ryl Tea recorded 157% growth while the broader $4.5 billion canned and bottled tea category declined 1.8% over the same period. The company noted that, for the first time, dollar growth generated by emerging tea brands is outpacing the dollar decline experienced by legacy tea brands, signalling changing consumer preferences within the category.

Blodin Ukella, founder and CEO of The Ryl Company, said: “Tea is one of the largest beverage categories in the U.S., but much of its shopper base has historically skewed older. Our mission is to bring a new generation of consumers into the tea aisle through products that align with how people want to drink today.”

The company’s strategy centres on attracting younger consumers with zero-sugar formulations, functional benefits and contemporary branding.

Ryl Tea's portfolio features fewer than five calories per can, functional tea polyphenols and vitamin C, positioning it within the broader health-and-wellness beverage trend that continues to resonate with Gen Z and Millennial shoppers.

The financing follows a period of significant operational expansion for the company. Over the past two years, Ryl has established a national DSD footprint, a milestone that places the brand among a relatively small group of emerging beverage companies with scalable route-to-market capabilities.

The company also recently expanded its innovation efforts through a multi-year licensing agreement with The Hershey Company. The partnership will bring zero-sugar iced teas inspired by Jolly Rancher flavours to market, combining one of confectionery’s most recognisable brands with Ryl’s functional tea platform.

Nicholas J. Singer, founder and managing partner of Purchase Capital, said: “The Ryl leadership team has built a product that strongly resonates with consumers and is rapidly expanding. Modern Tea is one of the most compelling categories in the beverage industry, and Ryl is exceptionally well-positioned to lead it.”

Looking ahead, Ryl executives indicated that additional product innovation is planned, with a new pipeline of launches expected in early 2027.

Leigh Feuerstein, co-chairman of The Ryl Company, said: “The work our team has done to earn retailer trust, build out our DSD network, and secure partnerships with companies like Hershey has positioned us well for the next phase of growth.”