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Another bell has tolled for "modern tea" as investors rush to embrace category-invigorating new entrants. The Ryl Co has landed Series C funding round of $20 mil led by special purpose vehicle established by Purchase Capital, a funder since launch of Morristown, NJ-based marketer of Ryl Tea canned tea brand. That raise brings total capital raised over co's 4 yrs to $50 mil, founder Blodin Ukella told us yesterday, in what may be final significant round as co vies to become cash-flow-positive next year. Other existing investors participated in round. The new money, at valuation he only described as being in 9-figure range, will foster intensified push to establish so-called modern tea set inaugurated by Walmart and echoed by Target and other retailers, in recognition that legacy RTD tea brands no longer seem to connect well with Gen Z and Millennial consumers, as Numerator data has suggested to Ukella. He cited scan data for most recent 13 wks that showed that modern tea sales gains for first time outpaced ongoing declines of legacy category. That modern tea set is settling out to include likes of Ryl, Just Ice Tea and Saint James brands, along with recent tea extension from Spindrift and smaller entries like Halfday, Juni and Swoon, by his observation. We'll note that legacy brands seem to be angling to get a piece of new set via entries like Pepsi's Mental Focus extension of Pure Leaf, much as PEP has sought to elbow its way into modern soda alongside acquired Poppi brand via Pepsi Prebiotic entry. But so far, it's flock of indie brands and extensions launched post-pandemic that retailers have been establishing as destination set. Purchase Capital principal Nate Singer helped fund prior venture in which Ukella was involved, OWYN (Only What You Need) plant-based protein shake player that exited to Simply Good Foods. This investment is being made by SPV dubbed Ryl Growth Partners, to support continued retail expansion, DSD buildout, brand innovations and org additions. "Modern Tea is one of the most compelling categories in the beverage industry, and Ryl is exceptionally well positioned to lead it," Nate offered in statement today. Among portfolio holdings listed on Purchase website, Ryl seems to be only food/bev play, among investments in properties like Shaun White-created Snow League snowboarding league, Synaptic Aviation AI play and Jetset Pilates franchise play.That team Ukella has been building lately has added several key execs, with more on way. Among them is Chad Portas as chief creative officer, who served in identical role at Bai Brands alongside Ryl sales chief Ken Kurtz and at OWYN alongside Ukella. Also in mix is CFO Nevila Kondili, who served in same role at OWYN backer Halen Brands as well as at OWYN itself and also at From The Ground Up Snacks, which also exited successfully. (Halen cofounder/co-CEO Leigh Feuerstein serves as co-chmn of Ryl Co.) In as svp of marketing & commns is Adam Davis, who arrives from running global corporate commns at DoorDash after similar role at Oatly.Due in early 2027 will be further innovation, on heels of tie to Hershey that brought licensed Jolly Rancher subline. Ukella described that as a game changer given that roughly three-quarters of its buyers have proved to be new to Ryl brand. That launch took a leaf out of energy category, where licenses of candy brands have sparked purchases at brands like Ghost.

Ryl Tea Lands $20M Series C Round to Support Further Push into 'Modern Tea'; Reinforces Leadership with Portas, Kondili, Davis

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