The Ryl Company closes $20 million Series C to accelerate growth of emerging “Modern Tea” category

Led by Purchase Capital, the round fuels Ryl Tea’s next chapter following 157 % year-over-year growth, a multi-year licensing partnership with The Hershey Company, and the build-out of a DSD footprint in the US

The Ryl Company, parent company of fast-growing iced tea brand, Ryl Tea, announced the close of a Series C growth equity round of $20 million, led by Purchase Capital through its Ryl Growth Partners SPV. The investment will support the company’s next phase of growth, including continued retail and Direct Store Delivery (DSD) expansion, the build-out of its innovation pipeline, and team investments across operations, sales, and brand in the US.

The round comes as Ryl Tea has emerged as one of the fastest-growing brands in ready-to-drink tea, while the broader category enters what industry observers are beginning to call its “Modern Tea” moment; the next chapter of the better-for-you beverage movement that has already reshaped soda, energy, and hydration.

Over the past several years, a new generation of beverage brands have rewritten the rules of legacy beverage categories by meeting Gen-Z and Millennial consumers where their preferences have already moved: toward zero sugar, functional benefits, and culturally relevant brands. Retail data suggests that tea, one of America’s largest and most universally loved beverage categories, is having its turn now.

According to Circana, Ryl Tea grew 157 %, while the rest of the more than $4.5 billion canned and bottled tea category declined 1.8 % over the same period.1 For the first time, the absolute dollar growth of emerging tea brands is outpacing the absolute dollar decline of the legacy category. The company believes the divergence – the same inflection signal that preceded the Modern Soda and Modern Energy breakouts – signals growing consumer demand for a more modern approach to tea, particularly among younger shoppers.

The shopper opportunity is significant. Ready-to-drink tea already enjoys roughly 81 % household penetration2, but the category’s shopper base has historically skewed Gen-X and Boomer. Ryl Tea over-indexes with female Gen-Z and Millennial consumers, bringing incremental shoppers into a category that has been largely under-served by modern brands.

The funding follows a period of significant momentum for Ryl, which has spent the past 24 months establishing a national DSD footprint, placing the brand among a small group of emerging beverage companies with the route-to-market infrastructure to compete at scale. The company also recently announced a multi-year licensing partnership with The Hershey Company to launch the first zero-sugar Jolly Rancher-inspired iced tea products, pairing one of America’s most iconic flavour brands with Ryl’s modern, zero-sugar formulation.

¹Source: Circana, LLC; Total US – MULO+ with Conv, Dollar Sales & Dollar Sales % Change v YA, 52 WE May 17, 2026
²Source: Data Provider, Numerator; Latest 52 Weeks Ending 03.29.2026l Category: Ready to Drink Tea