Related Party Transactions

6 Months Ended

Jun. 30, 2016

Transactions with Anheuser-Busch, LLC (“A-B”) and Ambev

In December 2015, we partnered with Ambev, the Brazilian subsidiary of Anheuser-Busch InBev SA, to distribute Kona beers into Brazil. Transactions with A-B and Ambev consisted of the following (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Gross sales to A-B and Ambev	$	53,638	$	52,279	$	85,894	$	87,946
Margin fee paid to A-B, classified as a reduction of Sales	456		746		814		1,284
Inventory management and other fees paid to A-B, classified in Cost of sales	105		103		191		193

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



	June 30, 2016			December 31, 2015
Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement	$	19,130		$	12,576
Refundable deposits due to A-B	(2,774		)	(2,291		)
Amounts due to A-B for services rendered	(1,647		)	(1,645		)
Net amount due from A-B	$	14,709		$	8,640

Operating Leases

We lease our headquarters office space, restaurant and storage facilities located in Portland, Oregon, as well as the land and certain equipment, from two limited liability companies, both of whose members include our former Board Chair, who is also a significant shareholder, and his brother, who is a current employee. Lease payments to these lessors were as follows (in thousands):



Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	30	$	30	$	60	$	60

We lease or sublease certain office space and the land underlying the brewery and pub location in Kona, Hawaii, from a company whose owners include a shareholder who owns more than 5% of our common stock. The sublease contracts expire on various dates through 2020, with an extension at our option for two five-year periods. Lease payments to this lessor were as follows (in thousands):



Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	128	$	129	$	257	$	261