Recess, a pioneer in the relaxation beverage category, has raised $30 million in Series B funding and appointed industry veteran Kyle Thomas as its new President and Co-CEO. The round was led by CAVU Consumer Partners, with participation from Rocana, Midnight Ventures, Torch Capital, Doehler Ventures, KAS Venture Partners, Vanquish, and Craig Kallman.
The funding marks a new chapter for the New York-based company as it aims to scale its operations, expand retail distribution, and enhance its marketing capabilities. CAVU’s backing comes shortly after its successful investment in poppi, the modern soda brand recently acquired by Pepsi for $1.95 billion.
The partnership with CAVU and the addition of Thomas (formerly Global Chief Commercial Officer at Nutrabolt, where he oversaw the explosive growth of C4 Energy and Bloom) signal Recess’ intent to dominate the emerging “functional relaxation” space. Thomas brings over 25 years of experience in the beverage industry, including more than a decade with Coca-Cola’s Emerging Brands division.
Founded in 2018, Recess began as a CBD beverage brand but has since evolved to focus primarily on magnesium-based products that promote relaxation and balance. Its flagship Recess Mood line now represents over 95% of sales, while its new Recess Zero Proof Craft Mocktail line has become a category leader in ready-to-drink mocktails.
Recess products are sold in more than 15,000 stores nationwide, including Target, Kroger, HEB, Sprouts, Trader Joe’s, and Whole Foods, and the brand is currently the largest alcohol-alternative brand on Amazon. The company plans to utilize its new capital to meet the growing demand from consumers for products that promote mental wellness, alleviate stress, and provide healthy social alternatives to alcohol.
KEY QUOTES:
“There’s a $25 billion-plus energy drink market in the U.S. built on stimulation, and we believe there needs to be a counterweight built on relaxation. Recess is the restorative alternative consumers are seeking, providing functional beverages that put mental wellness and balance first. Recess isn’t about powering through the day — it’s about being more mindful within it. We’re thrilled to partner with Ben and the team to help scale Recess from category pioneer to the definitive household name in modern relaxation.”
Jared Jacobs, Partner at CAVU Consumer Partners
“Consumers today are looking for products that do more for them, and Recess is the perfect next bet for CAVU within the functional beverage space. 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.”
Brett Thomas, Co-Founder and Managing Partner at CAVU Consumer Partners
“Recess is at the forefront of what I believe will become one of the next major beverage spaces — functional relaxation beverages and alcohol alternatives. I am incredibly excited to partner with Ben to help fulfill the incredible potential that the Recess brand and business has. I’ve had the privilege of helping scale platform brands like C4 and Bloom across categories, and I see that same potential here. The foundation Ben and the team have built positions Recess to continue to lead in this emerging space that they have defined and pioneered — and that’s what makes this opportunity so exciting. My immediate focus will be building organizational capability and capacity along with the right commercial systems to scale Recess into the next iconic modern beverage company.”
Kyle Thomas, President & Co-CEO of Recess
“The vision for Recess has always been to drive the development of the Relaxation space and the various sub-categories that would emerge within it by creating a portfolio of products all designed to help people relax, unwind, and socialize in healthier ways. The Recess journey has been one filled with many twists, turns and challenges – but I am proud of all that we have accomplished over the past seven years and the strong foundation that we have established. We are now entering a fundamentally new chapter of the Recess journey and I am incredibly excited to partner with Kyle and the CAVU team to set the Recess business up for accelerated growth, and to positively impact people on a much larger scale.”
Benjamin Witte, Founder & Co-CEO of Recess
