Ryl Tea raised a $20M Series C from Purchase Capital. Per Circana, the brand grew 157% while the rest of the $4.5B canned and bottled tea category declined 1.8%. Plus a new Hershey Jolly Rancher zero-sugar tea licensing deal.

Ryl Tea announced a $20M Series C led by Purchase Capital, following a $15M Series B in 2025. The growth math is the story: Circana shows Ryl up 157% in the period measured while the broader canned and bottled tea category, a roughly $4.5B segment, declined 1.8%. Use of funds is the standard list (broader retail and DSD distribution, new product innovation, and investments across operations, sales, and brand-building), but the more interesting recent move is a multi-year licensing partnership with The Hershey Company to launch the first zero-sugar Jolly Rancher-inspired iced tea products. That's a real distribution and brand-awareness unlock, the kind of licensing deal most emerging beverage brands cannot get within five years of launch.

The "Modern Tea" frame Ryl and its investors are using is interesting. Tea has been the quiet, untouched corner of better-for-you beverage for years while Olipop and Poppi reshaped soda, Liquid Death reshaped water, and Celsius reshaped energy. The argument now is that tea is the next category to get the same modern-positioning treatment, with clean ingredients, zero sugar, and brand-led identity replacing the legacy Lipton/Pure Leaf/Honest Tea aisle. The Hershey-Jolly Rancher partnership is also a fascinating play: pulling a beloved confectionery flavor brand into beverage in a zero-sugar wrapper is the same playbook that worked for Sour Patch Kids gum and Reese's protein bars.

For better-for-you beverage operators: is "Modern Tea" actually the next category reset, or is tea structurally too sleepy a SKU to get the Olipop or Celsius treatment? And how should we read the Hershey-Jolly Rancher licensing deal: is this a one-off, or is the legacy confectionery portfolio about to get unlocked across emerging beverage brands?

Source - BevNET