Tea Drops
Tea Drops is a Los Angeles-based organic tea company that makes dissolvable, bagless single-serve tea pressed from loose-leaf tea, selling through DTC e-commerce, subscriptions, wholesale, and retail chains to tea enthusiasts, gift buyers, and wholesale/corporate partners.
- Company typePrivate
- Founded2014
- HeadquartersLos Angeles, United States
- Headcount11–50
- GTM typeB2C
- OfferingHardware or Manufacturing
What Tea Drops does
Tea Drops is a privately held, organic tea company headquartered at 600 Wilshire Blvd #500, Los Angeles, California. It designs, manufactures, and sells a single core product format - pressed loose-leaf tea compressed into single-serve 'drops' that dissolve in hot water without teabags, strainers, or brewing equipment - built from organic, Fair Trade-certified ingredients sourced from Japan, Sri Lanka, and China. Founder and CEO Sashee Chandran launched the brand in 2014 to address the inconvenience of loose-leaf preparation, the mess of teabags, and concerns about microplastics and chemicals in conventional bagged tea. The catalog spans 66 SKUs across Tea Drops, Latte Kits, Boba drinks, Jelly toppings, Tea Sampler Boxes, and accessories, with customizable Build-A-Box bundling.
The company operates a hybrid go-to-market model. Direct-to-consumer e-commerce on Shopify is the primary channel, supported by a subscription service (15% off, free shipping over $19.99), a tiered loyalty program (The Sipper Club), and digital gift cards ($25-$125). Wholesale is run through the Faire marketplace and direct B2B partnerships, with retail placement at Cost Plus World Market, Hot Topic (14+ stores), Sprouts Farmers Market, Giant Food, and 80+ specialty retailers - a channel base supported by cited 99% wholesale sell-through. Corporate gifting is offered as a B2B vertical, and international fulfillment is enabled through Passport. Pricing spans roughly $9.99 for accessories and latte kits to $24-$40 for sampler and custom boxes, with per-drop unit economics of $0.84-$1.20 on the largest bundles.
Cumulative disclosed funding totals approximately $7M across 2017-2023, including a $5M 2021 Series A led by BrandProject with AccelFoods, Cue Ball, Halogen Ventures, and Siddhi Capital. Brand-building has been driven by celebrity endorsements (Michelle Obama, Chrissy Teigen, Tory Burch) and editorial features in Oprah Magazine, Good Housekeeping, People, and Food & Wine. The Thirst Project tie-in (clean water donations for every order) and USDA Organic / Fair Trade certifications anchor the sustainability and ethics positioning, while a partnership with Rebuy provides cart-stage personalization and Faire and Stockist power the wholesale and retail locator experiences respectively.
Tea Drops firmographics
Firmographics- Name
- Tea Drops
- Legal name
- Tea Drops
- Website
- https://myteadrop.com
- Company type
- Private
- Founded year
- 2014
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Tea Drops is a Los Angeles-based organic tea company that makes dissolvable, bagless single-serve tea pressed from loose-leaf tea, selling through DTC e-commerce, subscriptions, wholesale, and retail chains to tea enthusiasts, gift buyers, and wholesale/corporate partners.
- Ownership category
- akta.pro rank
Tea Drops industry classification
Industry- Product category
- Specialty Tea
- NAICS
- Coffee and Tea Manufacturing (311920), Coffee and Tea Manufacturing (31192)
- SIC
- Beverages (2080)
- akta.pro primary industry
- Tea (Leaf, Bagged, Instant, Concentrates) (CRADAHAE)
- akta.pro secondary industries
- Instant Tea, Tea Extracts & Concentrates Manufacturing (AFAFADAH), Tea Blending & Flavoring (AFAFADAG), Tea Processing (Withering, Rolling, Fermentation, Drying) (AFAFADAF)
Keywords
Where Tea Drops is headquartered
LocationHeadquarters
- HQ city
- Los Angeles
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Tea Drops business model
Business model- GTM type
- B2C
- Offering type
- Hardware or Manufacturing
- Cost components
- Supply Chain, Operations, Marketing or Sales, Personnel, Technology or R&D
Revenue model
- Direct E-commerce Sales: Primary revenue channel through their Shopify-powered website selling individual tea drops, sampler boxes, latte kits, boba drinks, and accessories directly to consumers. One-time purchase model with prices ranging from $9.99 to $89.99 for products.
- Subscription Service: Recurring subscription model offering 15% discount on all products, free shipping on recurring orders, exclusive subscriber gifts at order milestones, and ability to customize boxes with tea and boba combinations. Minimum purchase of $19.99 for free shipping on subscriptions.
- Wholesale Distribution: B2B wholesale channel through Faire marketplace and direct wholesale partnerships, targeting retail stores, gift shops, and specialty retailers. Corporate gifting programs for bulk orders.
- Gift Cards: Digital gift cards sold in denominations of $25, $50, $75, $100, and $125 with no processing fees and no expiration date.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Unit Pricing | Pay-as-you-go | Discovery Tea Gift Sampler - 9 Tea Drops |
| Subscription | Monthly | Custom Tea Box - 20 teas, 4 varieties |
| Subscription | Monthly | Custom Tea Box - 30 teas, 6 varieties (Most Popular) |
| Subscription | Monthly | Custom Tea Box - 40 teas, 8 varieties (Best Value) |
| Unit Pricing | Pay-as-you-go | Individual Tea Boxes |
| Unit Pricing | Pay-as-you-go | Latte Kits |
| Other | Pay-as-you-go | Digital Gift Cards |
Go-to-market motion2 records
Distribution channels6 records
Marketing channels11 records
Tea Drops product offering
Product offeringCore offering
Tea Drops manufactures and sells bagless, dissolvable organic tea pods made from finely ground loose-leaf tea, spices, and botanicals that dissolve in hot water like a bath bomb. The company sells its core tea drops alongside complementary offerings including latte kits, boba/bubble tea drinks, jelly toppings, sampler boxes, teaware, digital gift cards, and corporate gifting experiences through direct e-commerce, subscriptions, retail placement, and wholesale channels.
Product overview
Tea Drops is a single-core-product company built around dissolvable organic loose-leaf tea drops that function like a bath bomb, dissolving in hot water to create café-quality beverages without tea bags or mess. The portfolio includes the core Tea Drops product line (available in 15+ flavors like Matcha, Chai Spice, Earl Grey, and Ube), paired with complementary offerings: Latte Kits (tea + creamer combos), Boba Drinks (instant pearls + flavored drops), and Jelly Toppings. Distribution is enabled through a Custom Tea Box builder (10-40 unit bundles, subscription or one-time), curated Tea Sampler Boxes (themed gift sets), Teaware Accessories, Digital Gift Cards, and a Corporate Gifting program. Customer retention is driven by The Sipper Club loyalty program (points, referrals, VIP tiers) and a Subscription Service (15% recurring discount, free shipping threshold).
Differentiator
Problem solved
Functional benefit
Brands
- The Sipper Club: Loyalty and rewards program offering points for purchases, exclusive discounts, and member perks
Products and services
- Tea Drops (Dissolvable Organic Tea Pods) Core product line of dissolvable organic tea pods made from finely ground loose-leaf tea, spices, and botanicals that dissolve in hot water like a bath bomb. Available in 15+ flavors including Black Assam, Earl Grey, Cranberry, Matcha, Peppermint, Vanilla Black, Strawberry Matcha, Chai Spice, Pumpkin Spice, Rose London Fog, Thai Tea, Ube, and others. Sold to individual consumers, gift buyers, and wholesale partners.
- Build-A-Box Custom Tea Box Standalone customizable bundle offering that lets customers build their own mix of tea drops and boba flavors across multiple box sizes (10-40 count) with subscription or one-time purchase options. Supports over 100 drink combinations.
- Latte Kits Tea-based latte kits that pair Tea Drops with included creamer mixes to produce cafe-quality lattes at home. Available in flavors including Vanilla Black, Strawberry Matcha, Chai Spice, Pumpkin Spice, Rose London Fog, and Thai Tea. Priced at $9.99-$10.50 per kit.
- Boba / Bubble Tea Drinks Ready-to-make boba/bubble tea products including instant boba pearls and flavored boba tea drops in Chai, Matcha, Ube, Thai, and Tiger varieties for at-home bubble tea preparation.
- Tea Sampler Boxes Pre-curated themed sampler boxes including the Discovery Tea Gift Sampler (9 best-selling drops), Deluxe Tea Sampler, Dessert Sampler Box, and seasonal bundles like Morning Energizers and Weekend Brunch. Starter sampler priced at $17.99.
- Jelly Toppings
Quantifiable outcome
- Over 8 million Tea Drops sold, demonstrating market traction and product-market fit
- +4 more outcomes
Companies that use Tea Drops
Customer profileNamed customers8 records
Segments4 records
Ideal customer profiles3 records
Tea Drops technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration5 records
Feature4 records
Tea Drops partnerships and signals
Strategic signalPartnerships
Nine partnerships are on record, tiered core, primary, major, standard, supporting and infrastructure.
- Thirst ProjectcoreEvery Tea Drop order triggers a donation to Thirst Project, providing clean water to those in need. The partnership has resulted in clean water for 167,000 people. This is a core brand initiative reflecting Tea Drops' social impact mission.
- FaireprimaryFaire is Tea Drops' primary wholesale marketplace partner, providing a virtual showroom for retail buyers to discover and order Tea Drops products. Retail partners can order through Faire's platform for wholesale purchasing.
- Cost Plus World MarketmajorMajor retail chain partner with 8 store locations carrying Tea Drops products. Represents significant retail distribution presence.
- Hot TopicmajorRetail partner with 14+ store locations nationwide carrying Tea Drops. Strategic placement in lifestyle/entertainment retail.
- Sprouts Farmers MarketmajorHealth-focused grocery chain partner providing retail distribution in the natural/organic food retail segment.
- Giant FoodstandardRegional grocery chain partner with 3 store locations carrying Tea Drops products.
- PassportsupportingInternational shipping partner enabling worldwide delivery of Tea Drops products. Handles customs, duties, and international logistics.
- ShopifyinfrastructureE-commerce platform powering Tea Drops' online store. Provides the technological infrastructure for all direct-to-consumer sales, subscriptions, and order management.
- Fair Trade USAcoreFair Trade certification partner ensuring ethical sourcing practices. Tea Drops' ingredients are Fair Trade Certified, ensuring farmers receive fair compensation for tea supplied.
Scale indicators7 records
Recent moves6 records
Expansion highlights6 records
Tea Drops competitors and assessment
Company assessmentDirect peers
- Traditional Medicinals: Organic herbal tea company selling bagged teas through D2C, grocery, and natural foods channels. Closely comparable to Tea Drops in organic certification, sustainability positioning, and premium tea bag/pod formats sold to similar wellness-oriented consumers.
- Numi Tea: Premium organic, Fair Trade certified tea brand offering bagged and loose-leaf teas. Highly comparable to Tea Drops on ethical sourcing certifications, premium pricing, and D2C plus grocery distribution model.
- Republic of Tea: Premium specialty tea company selling loose-leaf, bagged, and packaged teas with a focus on wellness, sustainability, and gifting. Closely mirrors Tea Drops' gifting-heavy merchandising, mini-sampler SKUs, and direct-to-consumer catalog model.
- Yogi Tea: Wellness-positioned herbal and functional tea brand with bagged teas sold through grocery and natural foods channels. Comparable to Tea Drops on flavor-forward wellness blends, ethical sourcing, and presence in Sprouts-type natural grocery.
- Stash Tea: Premium specialty tea company offering loose-leaf and bagged teas through D2C and grocery. Comparable to Tea Drops on premium positioning, broad flavor portfolio, and gifting-oriented merchandising.
Broad incumbents
- Celestial Seasonings: Mass-market herbal tea brand (Hain Celestial) offering bagged teas across grocery, mass, and club. Comparable as a competing mainstream tea brand at a much larger scale with broader distribution reach than Tea Drops.
- Bigelow Tea: Family-owned premium tea manufacturer with broad bagged tea portfolio sold across US grocery and foodservice. Comparable as a competing premium-tier US tea brand with deeper distribution and category breadth than Tea Drops.
- Tazo Tea: Premium tea brand owned by Unilever, sold in grocery, foodservice, and formerly Starbucks retail channels. Comparable as a brand-led premium tea positioned for innovation and lifestyle marketing, but with corporate backing and far greater scale.
- Teavana (Starbucks): Premium tea brand sold by Starbucks with bagged and RTD formats across grocery and cafes. Comparable as a lifestyle tea brand competing for similar premium-conscious consumers, but with vastly greater corporate distribution.
- Twinings: Heritage premium tea brand with global bagged and loose-leaf presence in grocery and foodservice. Comparable on premium English-style black tea SKUs (Earl Grey, English Breakfast) overlapping directly with Tea Drops' core flavor lineup.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Customer concentration
Tea Drops social profiles
Digital presenceTea Drops compliance and trust
Trust signalCompliance3 records
Tea Drops financial estimates
Financial estimateRevenue estimate
Valuation estimate
Tea Drops leadership team
Management profileNumber of profiles
Profiles1 record
Tea Drops funding detail
Funding detailFunding overview
Funding rounds7 records
Investors8 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Tea Drops M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Tea Drops
What does Tea Drops do?
Tea Drops manufactures and sells bagless, dissolvable organic tea pods made from finely ground loose-leaf tea, spices, and botanicals that dissolve in hot water like a bath bomb. The company sells its core tea drops alongside complementary offerings including latte kits, boba/bubble tea drinks, jelly toppings, sampler boxes, teaware, digital gift cards, and corporate gifting experiences through direct e-commerce, subscriptions, retail placement, and wholesale channels.
Is Tea Drops a public or private company?
Tea Drops is a private company. It is classified as venture growth investor backed and is currently operating.
When was Tea Drops founded?
Tea Drops was founded in 2014. It employs 11 to 50 people.
Where is Tea Drops based?
Tea Drops is headquartered in Los Angeles, United States, in the North America region.
How does Tea Drops make money?
Four revenue lines are on record. Direct E-commerce Sales are the primary driver. The others are subscription Service, wholesale Distribution and gift Cards.
Who are Tea Drops's main competitors?
Direct peers on record are Traditional Medicinals, Numi Tea, Republic of Tea, Yogi Tea and Stash Tea. Broad incumbents are Celestial Seasonings, Bigelow Tea, Tazo Tea, Teavana (Starbucks) and Twinings.
Does Tea Drops have an API?
No public API is recorded for Tea Drops.
What industry is Tea Drops in?
Tea Drops's product category is Specialty Tea. Its primary akta.pro industry code is CRADAHAE, Tea (Leaf, Bagged, Instant, Concentrates), with a secondary code of AFAFADAH, Instant Tea, Tea Extracts & Concentrates Manufacturing. Its NAICS code is 311920 and its SIC code is 2080.