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Exclusive: Functional beverage brand Recess to raise $25 million

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

Illustration: Tiffany Herring/Axios

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.

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