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Remember the CBD wave? By now, influx of non-psychoactive CBD bevs that hit in late teens has largely ebbed, as regulatory uncertainty kept major retailers on sidelines, prompting some brands to migrate to other functional ingredients like magnesium and others to simply shut up shop even as excitement in cannabis bevs shifted to intoxicating Delta-9 THC entries. In Bay Area, tho, longtime bev consultant Greg Moore has kept the faith, soldiering on with Tam line that's strikingly packed in tall 12-oz glass bottles, in contrast to sea of canned entries in bev coolers these days, and resisting any urge to diversify into non-infused adjacencies. Named for iconic Mt Tamalpais in Marin County, Tam employs robust bill of 25-30 g of full-spectrum hemp infused into organic juices, eschewing isolate to reinforce efficacy, and has built out solid presence in regional natural grocers and on-premise venues like SF's Beanstalk Coffee, where we encountered it in Oct and staffer said it enjoys steady demand even at $8 price. Brand operates as Tamalpais Beverage out of Mill Valley.That's not to say there hasn't been considerable evolution in approach since we first profiled brand (BBI, Apr 24 2020). At its launch, Tam contained 15 mg of full-spectrum hemp and was positioned more as an alcohol-alternative. Moore readily admits initial formula was too bitter for some consumers, an issue he neutralized by adding organic cane sugar. But he was spending 50&cent; per bottle on CBD for frontline $7.99 price at a time a wave of isolate-based canned entries hit the market at lower price points. Further, Calif regs forced him to produce outside state at small bottler in Texas. "We got beat up," he readily acknowledged.But climate improved. Collapse in hemp prices brought his CBD bill to 13&cent; per bottle and changes in regs allowed him to recruit local copacker, HA Ryder in Watsonville, which produces Guayaki/Yerba Madre and Martinelli brands, and to move from self-distribution to established houses like Morris in Bay Area backyard. Blends with teas under names like Sleeping Lady and Calmer Palmer yielded flavor improvements as well as inviting portal thru which consumers might enter brand. Rather than leading with CBD, Tam often flags its other functional ingredients, as with Chamomile Hibiscus Tea entry dubbed Sleeping Lady (playing on nickname for Mt Tam but also ingredient's sleep-enhancing properties). He's nudged price down to $5-6 range. On brand's DTC site, it goes for $35 per 6-unit case. By now, Moore is ready to consider adding cans to packaging mix, if he can find right partner and sidestep issue of CBD bonding to cans' plastic linings. That would yield cost improvements, lower shipping costs and greatly open up ecomm potential.Another scare occurred more recently, in 2024, when CBD brands were caught by Gov Gavin Newsom's "emergency" crackdown on cannabis brands that effectively banned D9 brands from broad retail channels. As Moore recalled, even licensed CBD brands boasting 3d-party verification like Tam and its rival Daytrip were caught in dragnet. This past Feb, tho, that cloud lifted and the legit CBD players started hearing from grocery buyers again as retailers restored and expanded their CBD sets. Along the way, another glass-bottle CBD entry, Vybes, migrated to magnesium and exited category. Moore is hopeful that today's smaller cadre of conscientiously produced brands will enjoy smoother sailing going forward.With his LA-based adult son working brand in Southern Calif, Moore has been expanding Tam in that region, enlisting as distribution partner Whitestone Natural, which services natural chains like Bristol Farms and Lazy Acres. Chicago has also proved receptive to brand via partner named Rise Distribution out of Des Plaines. Recognizing that CBD brand like Tam isn't as at home in liquor stores as D9 brands are, Moore is pushing harder into restaurants, beer bars and brewery taprooms like Headlands in Berkeley, with Tam often used as a mocktail base.Having weathered various regulatory storms and shaken out looser players, category is more established now, and Moore is in discussions to add more first-tier DSD distribution, noting that some Anheuser-Busch houses in Golden State are now receptive to CBD brands tho Molson Coors houses generally aren't. In contrast to many among initial wave of CBD entrants, "we're alive!" he exulted. So he's willing to stay patient in seeing category reach its potential, he indicated.

STRATEGY: As CBD Competition Thins Out, Tam Plies Steady Course in Calif, Navigating Abrupt Policy Twists; Ready to Expand DSD Distribution

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