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Recess has hired Stifel Financial to raise $25 million, CEO Ben Witte tells Axios exclusively.

Why it matters: The sparkling beverage maker intends to become the Red Bull of the relaxation category.

By the numbers: Recess' sales were in the $10 million to $20 million range and expected to more than double last year, Witte said last August.

The functional beverage category is expected to grow in value to almost $280 billion by 2030 from nearly $130 billion in 2021, according to Precedence Research.

It sells in Target, Albertsons, H-E-B, Sprouts, and Winn-Dixie, and is in 14,000 stores.

To date, Recess has raised nearly $39 million, per PitchBook.

The big picture: The enhanced beverage category is gaining traction with investors, evidenced by Liquid Death's $67 million raise.

Catch up quick: Witte told Axios last year that Recess was planning to raise a Series B financing and could hire an investment bank.

It was seeking long-term investors and wanted an option for the company to remain independent, he also said at that time.

What we're watching: Several other beverage startups at Expo West have said they plan to raise money later this year.

Exclusive: Functional beverage brand Recess to raise $25 million

It has hired investment bank Stifel to guide the process.

an illustration of a glowing gold drink can on a hot pink background 

Beverage

Recess has hired Stifel Financial <a class="gtmContentClick" data-vars-link-text="to raise $25 million" data-vars-click-url="https://www.axios.com/pro/retail-deals/2023/08/16/recess-relaxation-functional-beverage-supplement-raising-capital" data-vars-content-id="551e41ea-af95-4cce-8912-460d74092c7d" data-vars-headline="Exclusive: Functional beverage brand Recess to raise $25 million" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2023/08/16/recess-relaxation-functional-beverage-supplement-raising-capital" target="_self">to raise $25 million</a>, CEO Ben Witte tells Axios exclusively.Why it matters: The sparkling beverage maker intends to become the Red Bull of the relaxation category.

Exclusive: Functional beverage brand Recess to raise $25 million

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