Segment Results and Concentrations

9 Months Ended

Sep. 30, 2012

Segment Results and Concentrations [Abstract]

Segment Results and Concentrations

Note 7. Segment Results and Concentrations

Our Chief Operating Decision Maker monitors net sales and gross margins of our Beer Related operations and our Pubs operations. Beer Related operations include the brewing operations and related beer sales of our Widmer Brothers, Redhook, Kona and Omission beer brands, both domestically and internationally. Pubs operations include our pubs, some of which are located adjacent to our Beer Related operations, other merchandise sales and sales of our beers directly to customers. 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 by segment were as follows (dollars in thousands):

Three Months Ended September 30,
2012	Beer Related			Pubs			Total
Net sales	$	37,880		$	6,708		$	44,588
Gross profit	$	12,321		$	1,303		$	13,624
Gross margin		32.5	%		19.4	%		30.6	%
2011
Net sales	$	34,262		$	6,215		$	40,477
Gross profit	$	11,533		$	1,182		$	12,715
Gross margin		33.7	%		19.0	%		31.4	%

Nine Months Ended September 30,
2012	Beer Related			Pubs			Total
Net sales	$	109,364		$	17,987		$	127,351
Gross profit	$	35,679		$	2,990		$	38,669
Gross margin		32.6	%		16.6	%		30.4	%
2011
Net sales	$	97,583		$	16,687		$	114,270
Gross profit	$	32,477		$	2,924		$	35,401
Gross margin		33.3	%		17.5	%		31.0	%

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 were as follows as a percentage of Sales:

Three Months Ended September 30,						Nine Months Ended September 30,
2012			2011			2012			2011
	81.1	%		79.2	%		80.9	%		80.7	%

Receivables from A-B represented the following percentage of our accounts receivable balance:

September 30, 2012			December 31, 2011
	65.3	%		62.4	%