Note 3. Inventories

Inventories, except for pub food, beverages and supplies, are stated at the lower of standard cost or market. Pub food, beverages and supplies are stated at the lower of cost or market.

We regularly review our inventories for the presence of obsolete product attributed to age, seasonality and quality. If our review indicates a reduction in utility below the product's carrying value, we reduce the product to a new cost basis. We record the cost of inventory for which we estimate we have more than a twelve-month supply as a component of Intangible and other assets on our Consolidated Balance Sheets.

Inventories consisted of the following (in thousands):

	September 30, 2011		December 31 2010
Raw materials	$	1,759	$	2,870
Work in process		3,126		2,244
Finished goods		3,556		1,933
Packaging materials		498		343
Promotional merchandise		1,005		1,184
Pub food, beverages and supplies		184		155
	$	10,128	$	8,729

Inventories included in Intangible and other assets	$	666	$	285

Work in process is beer held in fermentation tanks prior to the filtration and packaging process.