Related Party Transactions

12 Months Ended

Dec. 31, 2015

For additional related party transactions, see Notes 8 and 16.

As of December 31, 2015 and 2014, A-B owned approximately 31.6% and 31.7%, respectively, of our outstanding common stock.

A-B Distributor Agreement

The A-B Distributor Agreement requires a $0.25 per case equivalent Margin Fee to be paid to A‑B for beer sold through A-B or the associated A‑B distribution network, except for beer sold in qualifying territories, through December 31, 2018. Beer sold through A-B or the associated A-B distribution network in qualifying territories, as defined, was exempt from Margin Fees until September 30, 2013, and thereafter are assessed Margin Fees at the $0.25 per case equivalent through December 31, 2018. In the event the A-B Distributor Agreement is renewed beyond December 31, 2018, the A-B Distributor Agreement sets Margin Fees to be paid to A‑B for the period beginning January 1, 2019 and ending December 31, 2028, at $0.75 per case equivalent.

If we purchase additional beer brands, we may distribute those brands outside of the A-B Distributor Agreement while still selling existing brands to A-B affiliated wholesalers. We would not be obligated to pay margin fees on sales of the new brand.

Transactions with A-B

Transactions with A-B consisted of the following (in thousands):



	Year Ended December 31,
	2015		2014		2013
Gross sales to A-B	$	179,974	$	178,805	$	161,010
Margin fee paid to A-B, classified as a reduction of Sales	2,594		2,644		2,009
Handling, inventory management, royalty and other fees paid to A-B, classified in Cost of sales	396		393		402

Amounts due to or from A-B were as follows (in thousands):



	December 31,
	2015			2014
Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement	$	12,576		$	7,846
Refundable deposits due to A-B	(2,291		)	(2,629		)
Amounts due to A-B for services rendered	(1,645		)	(1,821		)
Net amount due from A-B	$	8,640		$	3,396

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details