Note 4.

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,		December 31,
	2013		2012
Raw materials	$	3,081	$	2,497
Work in process		3,854		3,552
Finished goods		5,690		3,263
Packaging materials		524		544
Promotional merchandise		1,850		1,552
Pub food, beverages and supplies		378		341
	$	15,377	$	11,749

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