Segment Results and Concentrations

6 Months Ended

Jun. 30, 2018

Our chief operating decision maker monitors Net sales and gross margins of our Beer Related operations and our Brewpubs operations. Beer Related operations include the brewing operations and related domestic and international beer and cider sales of our Kona, Widmer Brothers, Redhook and Omission beer brands and Square Mile cider brand. Brewpubs operations primarily include our brewpubs, some of which are located adjacent to our Beer Related operations. We do not track operating results beyond the gross margin level or our assets on a segment level.

Net sales, Gross profit and gross margin information by segment was as follows (dollars in thousands):



	Three Months Ended June 30,
2018	Beer Related			Brewpubs			Total
Net sales	$	55,722		$	6,101		$	61,823
Gross profit	$	21,942		$	185		$	22,127
Gross margin	39.4		%	3.0		%	35.8		%

2017
Net sales	$	53,435		$	7,115		$	60,550
Gross profit	$	17,620		$	709		$	18,329
Gross margin	33.0		%	10.0		%	30.3		%

	Six Months Ended June 30,
2018	Beer Related			Brewpubs			Total
Net sales	$	97,198		$	12,112		$	109,310
Gross profit	$	36,652		$	546		$	37,198
Gross margin	37.7		%	4.5		%	34.0		%

2017
Net sales	$	91,286		$	13,566		$	104,852
Gross profit	$	29,890		$	1,108		$	30,998
Gross margin	32.7		%	8.2		%	29.6		%

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and, therefore, no asset by segment information is provided to our chief operating decision maker.

In preparing this financial information, certain expenses were allocated between the segments based on management estimates, while others were based on specific factors such as headcount. These factors can have a significant impact on the amount of Gross profit for each segment. While we believe we have applied a reasonable methodology, assignment of other reasonable cost allocations to each segment could result in materially different segment Gross profit.

Sales to wholesalers through the A-B distributor agreement represented the following percentage of our Sales:



Three Months Ended June 30,				Six Months Ended June 30,
2018		2017		2018		2017
77.9	%	76.8	%	77.3	%	74.2	%

Receivables from A-B and ABWI represented the following percentage of our Accounts receivable balance:



June 30, 2018		December 31, 2017
71.9	%	74.4	%