Recess is cracking open new markets.
What’s happening: The functional beverage maker secured a $30M Series B led by CAVU Consumer Partners while appointing former Nutrabolt exec Kyle Thomas as co-CEO.
Elevated sips. Originally a CBD drink, Recess has evolved into a relaxation platform. Its magnesium- and adaptogen-infused Mood drinks, powders, and mocktails now account for 99% of sales — said to be $20M–$40M in ’24.
An early investor in prebiotic cola poppi, CAVU’s Jared Jacobs sees a similar trajectory for Recess:
“There’s a $25 billion-plus energy drink market in the US built on stimulation, and we believe there needs to be a counterweight built on relaxation.”
Unquenchable. Nearly 40% of Gen Z and millennials drink functional beverages, with interest in mood support up 62%, per SPINS. As THC beverages approach $4B in annual sales, nonintoxicating euphorics are rising in tandem.
Positioning as a top NA bev, Kin Euphorics partnered with top booze distributor Southern Glazer’s, while Constellation Brands took a stake in functional seltzer Hiyo.
Meanwhile, Odyssey, BRĒZ, and Aplós are tapping RTD mushrooms for jitter-free energy and hangover-free socializing, and TRIP teamed with Calm on a meditation-paired botanical drink.
Punchline: As consumers sip for gut health, hydration, and protein, mind and mood beverages could be the next big swig.
