Recess Raises $30M Amid Functional Beverage Boom, Taps Ex-Nutrabolt Exec
With U.S. drinking at record lows and functional beverages at a fever pitch, Recess is ready to scale its “relaxation over stimulation” drink vision
Recess, the functional beverage startup that made “taking a breather” cool again, just secured $30 million in Series B funding led by Cavu Consumer Partners, the same firm that backed better-for-you soda brand Poppi before its $1.95 billion Pepsi acquisition.
The round included participation from Rocana, Midnight Ventures, Torch Capital, Doehler Ventures, KAS Venture Partners, Vanquish and Craig Kallman and comes as Recess sets its sights on creating a counterweight to the $25 billion energy drink industry: drinks designed for calm focus rather than jittery stimulation.
Alongside the funding, Recess named beverage veteran Kyle Thomas, formerly of Nutrabolt (C4 Energy, Bloom), as president and co-CEO. Thomas, who had a 10-year run at Coca-Cola, also played a key role in scaling C4 to nearly $1 billion in sales.
Founded in 2018 by Benjamin Witte, Recess first captured attention with its CBD-infused sparkling waters and Millennial-friendly branding and has since expanded significantly beyond its original product line, with 95% of its sales coming from the magnesium-based Recess Mood line.
More recently, the brand introduced Recess Zero Proof Craft Mocktail, fueling the alcohol moderation and sober-curious movements dominating the beverage industry and Gen Z. The timing is spot on: U.S. alcohol consumption has fallen to record lows, according to Gallup.
“Consumers today are looking for products that do more for them,” Cavu co-founder and managing partner Brett Thomas said. “We believe relaxation is the next frontier and resonates deeply with today’s overstimulated generations. With the incredible addition of co-CEO Kyle Thomas, we couldn’t be more excited to be a part of the Recess revolution.”
With the new investment, Recess plans to grow its team, expand retail distribution and scale marketing efforts. The brand is now sold in over 15,000 U.S. stores, including Target, HEB, Kroger, Sprouts, Trader Joe’s, Whole Foods and Amazon.
Thomas said his focus will be on building organizational capability and commercial systems to transform Recess into “the next iconic modern beverage company.”
“Recess is at the forefront of what I believe will become one of the next major beverage spaces—functional relaxation and alcohol alternatives,” Thomas said. “The foundation Ben and the team have built positions Recess to continue to lead in this emerging space that they have defined and pioneered.”
Witte echoed that sentiment, noting how the company’s original vision is coming full circle.
“The Recess journey has been one filled with many twists, turns and challenges,” he said. “We’re now entering a fundamentally new chapter, and I’m incredibly excited to partner with Kyle and the Cavu team to scale the brand and positively impact people on a much larger scale.”
Recess isn’t alone in chasing the functional beverage craze.
Kim Perell-backed Juni Tea is bringing mindfulness and adaptogens to the canned tea aisle and just entered Whole Foods, Temple Lifestyle Brands just picked up Rise Kombucha‘s gut-friendly drink and Everyday Dose is taking its functional coffee blends into more than 1,500 Target stores.