The Ryl Company, the parent company of fast-growing iced tea brand Ryl Tea, announced the closing of a $20 million Series C growth equity financing round led by Purchase Capital through its Ryl Growth Partners SPV. The funding will support the company’s next phase of expansion, including broader retail and Direct Store Delivery (DSD) distribution, new product innovation, and investments across operations, sales, and brand-building efforts.
The financing comes as Ryl Tea continues to gain traction in the ready-to-drink tea market. According to the company, Circana data showed Ryl Tea grew 157% year over year while the broader canned and bottled tea category declined 1.8% during the same period. The company believes this performance reflects a shift in consumer preferences toward beverages with zero sugar, functional benefits, and a stronger appeal to younger consumers.
Ryl positions itself within what it describes as the emerging “Modern Tea” category, a movement that mirrors transformations previously seen in soda, energy drinks, and hydration products. The company says ready-to-drink tea already enjoys approximately 81% household penetration in the United States, but historically has skewed toward older consumers. Ryl has focused on attracting Gen-Z and Millennial shoppers, particularly female consumers, to drive category growth.
The company has also expanded its national DSD footprint over the past two years, providing distribution infrastructure designed to help the brand compete at scale. In addition, Ryl recently announced a multi-year licensing partnership with The Hershey Company to launch zero-sugar iced tea products inspired by the Jolly Rancher brand.
The new capital will also help fund the company’s innovation pipeline, with additional product launches planned for 2027.
KEY QUOTES:
“We have enormous respect for the brands that built this category over the last several decades –they’re the reason tea has become a staple in the majority of American households. Our mission is to help bring a new generation of consumers into the tea aisle and grow the overall category through products that align with how people want to drink today. We’re incredibly grateful to our team, our retail and distribution partners, our investors, and the consumers who’ve believed in what we’re building. This round gives us the opportunity to fuel that momentum.”
Blodin Ukella, Founder and CEO, The Ryl Company
“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.”
Nicholas J. Singer, Founder and Managing Partner, Purchase Capital
“This round is fuel, not a finish line. The work our team has done to earn the trust of retailers, build out our DSD network, and partner with companies like The Hershey Company has positioned us well for the next phase of growth. We have a meaningful innovation pipeline coming in Q1 2027 that we’re excited to share when the time is right — and we’re approaching this next chapter with the same focus that got us here.”
Leigh Feuerstein, Co-Chairman, The Ryl Company
