Related Party Transactions

6 Months Ended

Jun. 30, 2017

As of both June 30, 2017 and December 31, 2016, A-B owned approximately 31.5% of our outstanding common stock.

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

In December 2015, we partnered with Ambev, the Brazilian subsidiary of Anheuser-Busch InBev SA, to distribute Kona beers into Brazil. In August 2016, we also entered into an International Distribution Agreement with ABWI, an affiliate of A-B, pursuant to which ABWI will distribute our malt beverage products in jurisdictions outside the United States, subject to the terms and conditions of our agreement with our existing international distributor, CraftCan Travel LLC, and certain other limitations. Transactions with A-B, Ambev and ABWI consisted of the following (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Gross sales to A-B and Ambev	$	49,144	$	53,638	$	81,785	$	85,894
International distribution fee earned from ABWI	850		—		1,700		—
Margin fee paid to A-B, classified as a reduction of Sales	669		456		1,157		814
Inventory management and other fees paid to A-B, classified in Cost of sales	101		105		192		191
Media and other reimbursement from A-B, classified as a reduction of Selling, general and administrative expenses	74		—		74		—

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



	June 30, 2017			December 31, 2016
Amounts due from A-B related to beer sales pursuant to the A-B distributor agreement	$	14,037		$	12,246
Amounts due from ABWI and A-B related to international distribution fee and media and other reimbursement	2,583			3,750
Refundable deposits due to A-B	(2,131		)	(2,162		)
Amounts due to A-B for services rendered	(5,880		)	(1,782		)
Net amount due from A-B	$	8,609		$	12,052

Operating Leases

We lease our headquarters office space, restaurant and storage facilities located in Portland, 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 continues to be employed by us. Lease payments to these lessors were as follows (in thousands) and are included in the Rent expense under all operating leases above:



Three Months Ended June 30,				Six Months Ended June 30,
2017		2016		2017		2016
$	31	$	30	$	61	$	60

We hold lease and sublease obligations for certain office space and the land underlying the brewery and pub location in Kona, Hawaii, with 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) and are included in the Rent expense under all operating leases above:



Three Months Ended June 30,				Six Months Ended June 30,
2017		2016		2017		2016
$	145	$	128	$	288	$	257