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):

	June 30,		December 31,
	2012		2011
Raw materials	$	2,670	$	2,778
Work in process		3,167		2,829
Finished goods		3,569		2,128
Packaging materials		759		558
Promotional merchandise		784		967
Pub food, beverages and supplies		336		186
	$	11,285	$	9,446

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