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| x                                    | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------------------------------------|------------------------------------------------------------------------------------------|
|                                 | For The Quarterly Period Ended March 31, 2011                                            |
|                                 |                                                                                     |
|                                 | OR                                                                                       |
|                                 |                                                                                     |
| o                                    | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                 | For the transition period from _______________ to ______________                         |
|  Commission File Number 0-26542 |

| Washington                                                    |   | 91-1141254                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 929 North Russell StreetPortland, Oregon  97227  |
|------------------------------------------------------------|
| (Address of principal executive offices)                   |
|                                                       |
| (503) 331-7270                                             |
| (Registrant’s telephone number, including Area Code) |
|                                                       |

| Large Accelerated Filer o                                            |           Accelerated Filer o |
|----------------------------------------------------------------------|----------------------------------------------------------------------------|
| Non-accelerated Filer o(Do not check if a smaller reporting company) | Smaller Reporting Company  þ                                     |

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TABLE OF CONTENTS

| PART I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Financial Information                                                                       | Page                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Financial Statements                                                                        |                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                        | 3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | Consolidated Statements of Income for the Three Months Ended March 31, 2011 and 2010.         | 4 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 | 5 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        | Notes to Consolidated Financial Statements                                                    | 6 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Quantitative and Qualitative Disclosures about Market Risk                                  | 22                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Controls and Procedures                                                                     | 22                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| PART II.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Other Information                                                                           |                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Legal Proceedings                                                                           | 23                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| ITEM 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Exhibits                                                                                    | 23                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                        |                                                                                          |
| SIGNATURES                                                                                                                             | 24                                                                                          |

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Table of contents

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                     |   | (Unaudited)March 31,2011                             |    |   | December 31,2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|------------------|--------|
|                                                                                                                                                                                                     |   | (Dollars in thousands except per share amounts) |    |
| ASSETS                                                                                                                                                                                                   |   |                                                 |    |   |             |   |
| Current assets:                                                                                                                                                                                          |   |                                                 |    |   |             |   |
| Cash and cash equivalents                                                                                                                                                                                |   | $                                                    | 95      |   |             | $      | 164 |   |
| Accounts receivable, net                                                                                                                                                                                 |   |                                                 | 10,356  |   |             |   | 10,514 |   |
| Inventories                                                                                                                                                                                              |   |                                                 | 10,138  |   |             |   | 8,729 |   |
| Deferred income tax asset, net                                                                                                                                                                           |   |                                                 | 894     |   |             |   | 932 |   |
| Other current assets                                                                                                                                                                                     |   |                                                 | 3,626   |   |             |   | 3,233 |   |
| Total current assets                                                                                                                                                                                     |   |                                                 | 25,109  |   |             |   | 23,572 |   |
| Property, equipment and leasehold improvements, net                                                                                                                                                      |   |                                                 | 98,817  |   |             |   | 98,778 |   |
| Equity investment in Fulton Street Brewery, LLC                                                                                                                                                          |   |                                                 | 5,596   |   |             |   | 5,240 |   |
| Goodwill                                                                                                                                                                                                 |   |                                                 | 12,917  |   |             |   | 12,917 |   |
| Intangible and other assets, net                                                                                                                                                                         |   |                                                 | 17,879  |   |             |   | 17,759 |   |
| Total assets                                                                                                                                                                                             |   | $                                                    | 160,318 |   |             | $      | 158,266 |   |
|                                                                                                                                                                                                     |   |                                                 |    |   |             |   |   |   |
|                                                                                                                                                                                                     |   |                                                 |    |   |             |   |   |   |
| LIABILITIES AND COMMON STOCKHOLDERS' EQUITY                                                                                                                                                              |   |                                                 |    |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                                     |   |                                                 |    |   |             |   |   |   |
| Accounts payable                                                                                                                                                                                         |   | $                                                    | 16,233  |   |             | $      | 13,825 |   |
| Accrued salaries, wages, severance and payroll taxes                                                                                                                                                     |   |                                                 | 3,533   |   |             |   | 4,053 |   |
| Refundable deposits                                                                                                                                                                                      |   |                                                 | 6,183   |   |             |   | 6,291 |   |
| Other accrued expenses                                                                                                                                                                                   |   |                                                 | 1,201   |   |             |   | 1,378 |   |
| Current portion of long-term debt and capital lease obligations                                                                                                                                          |   |                                                 | 2,087   |   |             |   | 2,460 |   |
| Total current liabilities                                                                                                                                                                                |   |                                                 | 29,237  |   |             |   | 28,007 |   |
| Long-term debt and capital lease obligations, net of current portion                                                                                                                                     |   |                                                 | 25,499  |   |             |   | 24,675 |   |
| Fair value of derivative financial instruments                                                                                                                                                           |   |                                                 | 748     |   |             |   | 849 |   |
| Deferred income tax liability, net                                                                                                                                                                       |   |                                                 | 10,095  |   |             |   | 10,118 |   |
| Other liabilities                                                                                                                                                                                        |   |                                                 | 431     |   |             |   | 421 |   |
| Commitments and Contingencies                                                                                                                                                                            |   |                                                 |    |   |             |   |   |   |
| Common stockholders' equity:                                                                                                                                                                             |   |                                                 |    |   |             |   |   |   |
| Common stock, par value $0.005 per share, 50,000,000 shares authorized; 18,823,053 shares and 18,819,053 shares at March 31, 2011 and December  31, 2010, respectively, issued and outstanding |   |                                                 | 94      |   |             |   | 94 |   |
| Additional paid-in capital                                                                                                                                                                               |   |                                                 | 134,635 |   |             |   | 134,601 |   |
| Accumulated other comprehensive loss                                                                                                                                                                     |   |                                                 | (466    | )      |             |   | (528 | ) |
| Retained deficit                                                                                                                                                                                         |   |                                                 | (39,955 | )      |             |   | (39,971 | ) |
| Total common stockholders' equity                                                                                                                                                                        |   |                                                 | 94,308  |   |             |   | 94,196 |   |
| Total liabilities and common stockholders' equity                                                                                                                                                        |   | $                                                    | 160,318 |   |             | $      | 158,266 |   |

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Table of contents

CONSOLIDATED STATEMENTS OF INCOME

|                                         |   | Three Months Ended March 31,        |    |
|----------------------------------------------|--------|------------------------------------------|---------|
|                                         |   | 2011                                     |    |   | 2010 |   |
|                                         |   | (In thousands, except per share amounts) |    |
|                                         |   |                                     |    |   |   |   |
| Sales                                        |   | $                                        | 34,960  |   |   | $ | 29,323 |   |
| Less excise taxes                            |   |                                     | 2,663   |   |   |   | 1,871 |   |
| Net sales                                    |   |                                     | 32,297  |   |   |   | 27,452 |   |
| Cost of sales                                |   |                                     | 23,069  |   |   |   | 20,605 |   |
| Gross profit                                 |   |                                     | 9,228   |   |   |   | 6,847 |   |
| Selling, general and administrative expenses |   |                                     | 9,289   |   |   |   | 6,205 |   |
| Operating income (loss)                      |   |                                     | (61     | ) |   |   | 642 |   |
| Income from equity investments               |   |                                     | 356     |   |   |   | 85 |   |
| Interest expense                             |   |                                     | (282    | ) |   |   | (399 | ) |
| Interest and other income, net               |   |                                     | 13      |   |   |   | 53 |   |
| Income before income taxes                   |   |                                     | 26      |   |   |   | 381 |   |
| Income tax provision                         |   |                                     | 10      |   |   |   | 172 |   |
| Net income                                   |   | $                                        | 16      |   |   | $ | 209 |   |
|                                         |   |                                     |    |   |   |   |   |   |
| Basic and diluted earnings per share         |   | $                                        | — |   |   | $ | 0.01 |   |

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Table of contents

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                              |   | Three Months Ended March 31, |    |
|-----------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                              |   | 2011                              |    |   | 2010 |   |
|                                                                              |   | (In thousands)                    |    |
| Operating Activities                                                              |   |                              |    |   |   |   |
| Net income                                                                        |   | $                                 | 16      |   |   | $ | 209 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                              |    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                              | 1,820   |   |   |   | 1,837 |   |
| Income from equity investments                                                    |   |                              | (356    | ) |   |   | (85 | ) |
| Deferred income taxes                                                             |   |                              | (24     | ) |   |   | 131 |   |
| Stock-based compensation                                                          |   |                              | 39      |   |   |   | 2 |   |
| Loss on sale or disposal of property, equipment and leasehold improvements        |   |                              | — |   |   |   | 29 |   |
| Other                                                                             |   |                              | 62      |   |   |   | 23 |   |
| Changes in operating assets and liabilities:                                      |   |                              |    |   |   |   |   |   |
| Accounts receivable                                                               |   |                              | 158     |   |   |   | (351 | ) |
| Inventories                                                                       |   |                              | (1,494  | ) |   |   | (879 | ) |
| Income tax receivable and other current assets                                    |   |                              | (392    | ) |   |   | 364 |   |
| Other assets                                                                      |   |                              | (202    | ) |   |   | 38 |   |
| Accounts payable and other accrued expenses                                       |   |                              | 2,213   |   |   |   | 1,639 |   |
| Accrued salaries, wages, severance and payroll taxes                              |   |                              | (520    | ) |   |   | (377 | ) |
| Refundable deposits and other liabilities                                         |   |                              | 133     |   |   |   | (84 | ) |
| Net cash provided by operating activities                                         |   |                              | 1,453   |   |   |   | 2,496 |   |
|                                                                              |   |                              |    |   |   |   |   |   |
| Investing Activities                                                              |   |                              |    |   |   |   |   |   |
| Expenditures for property, equipment and leasehold improvements                   |   |                              | (2,015  | ) |   |   | (733 | ) |
| Proceeds from sale of property, equipment and leasehold improvements              |   |                              | 5       |   |   |   | 44 |   |
| Net cash used in investing activities                                             |   |                              | (2,010  | ) |   |   | (689 | ) |
|                                                                              |   |                              |    |   |   |   |   |   |
| Financing Activities                                                              |   |                              |    |   |   |   |   |   |
| Principal payments on debt and capital lease obligations                          |   |                              | (825    | ) |   |   | (365 | ) |
| Net borrowing (repayments) under revolving line of credit                         |   |                              | 1,300   |   |   |   | (700 | ) |
| Issuance of common stock                                                          |   |                              | 13      |   |   |   | — |   |
| Net cash provided by (used in) financing activities                               |   |                              | 488     |   |   |   | (1,065 | ) |
|                                                                              |   |                              |    |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                  |   |                              | (69     | ) |   |   | 742 |   |
| Cash and cash equivalents:                                                        |   |                              |    |   |   |   |   |   |
| Beginning of period                                                               |   |                              | 164     |   |   |   | 11 |   |
|                                                                              |   |                              |    |   |   |   |   |   |
| End of period                                                                     |   | $                                 | 95      |   |   | $ | 753 |   |
|                                                                              |   |                              |    |   |   |   |   |   |
| Supplemental Disclosures                                                          |   |                              |    |   |   |   |   |   |
| Cash paid for interest                                                            |   | $                                 | 309     |   |   | $ | 427 |   |
|                                                                              |   |                              |    |   |   |   |   |   |
| Cash paid for income taxes                                                        |   | $                                 | 104     |   |   | $ | 91 |   |

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Table of contents

| 1.    Basis of Presentation |
|-------------------------------------------------|

| 2.     Inventories |
|----------------------------------------|

|                             |   | March 31,      |   |   | December 31, |   |
|----------------------------------|--------|----------------|--------|--------|--------------|--------|
|                             |   | 2011           |   |   | 2010         |   |
|                             |   | (In thousands) |   |
|                             |   |           |   |   |         |   |
| Raw materials                    |   | $              | 2,727  |   |         | $      | 2,870 |   |
| Work in process                  |   |           | 2,938  |   |         |   | 2,244 |   |
| Finished goods                   |   |           | 3,121  |   |         |   | 1,933 |   |
| Packaging materials              |   |           | 275    |   |         |   | 343 |   |
| Promotional merchandise          |   |           | 917    |   |         |   | 1,184 |   |
| Pub food, beverages and supplies |   |           | 160    |   |         |   | 155 |   |
|                             |   |           |   |   |         |   |   |   |
|                             |   | $              | 10,138 |   |         | $      | 8,729 |   |

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Table of contents

| 3.     Equity Investments |
|-----------------------------------------------|

| 4.     Derivative Financial Instruments and Fair Value Measurement |
|----------------------------------------------------------------------------------------|

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Table of contents

|                                                        |                                                       | March 31, |                 |   | December 31, |   |
|-------------------------------------------------------------|------------------------------------------------------------|-----------|----------------------|--------|--------------|--------|
|                                                        | Balance Sheet Location                                     |      | 2011                 |   |         | 2010   |   |
|                                                        |                                                       |      |  (in thousands) |   |
|                                                        |                                                       |      |                 |   |
| Derivative instruments in liability positions:              |                                                       |      |                 |   |         |   |
|                                                        |                                                       |      |                 |   |         |   |   |
| Derivatives designated as hedging instruments under ASC 815 |                                                       |      |                 |   |         |   |
| Interest rate swap contract                                 | Non-current liabilities - derivative financial instruments |      | $                    | 748    |         |   | $ | 849 |   |

|   | Level 1: | Observable inputs (unadjusted) in active markets for identical assets and liabilities; |
|--------|----------|----------------------------------------------------------------------------------------|

|   | Level 2: | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets and inputs other than quoted prices that are observable for the asset or liability; |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity or data for the asset or liability. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                 | Fair Value Hierarchy Assessment |   |
|----------------------------------------------------------------------|---------------------------------|--------|
|                                                                 | Level 1                         |   | Level 2 |   | Level 3 |   | Total |   |
|                                                                 | (in thousands)                  |   |
| March 31, 2011                                                       |                            |   |   |   |   |   |   |   |
| Derivative financial instruments - interest rate swap contracts |                            | $      | - |   |   | $ | 748 |   |   | $ | - |   |   | $ | 748 |   |
|                                                                 |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                                                    |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments - interest rate swap contracts |                            | $      | - |   |   | $ | 849 |   |   | $ | - |   |   | $ | 849 |   |

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Table of contents

| 5.     Common Stockholders’ Equity |
|--------------------------------------------------------------|

|                              |   | Options        |   |   | Weighted Average Exercise Price |   |   | Aggregate Intrinsic Value |   |
|-----------------------------------|--------|----------------|--------|--------|--------------------------------------|--------|--------|---------------------------|--------|
|                              |   | (in thousands) |   |   | (per share)                          |   |   | (in thousands)            |   |
|                              |   |           |   |   |                                 |   |   |                      |   |
| Outstanding at December 31, 2010  |   |           | 219    |   |                                 | $      | 3.14   |                      |   | $ | 931 |   |
|                              |   |           |   |   |                                 |   |   |                      |   |   |   |   |
|     Exercised |   |           | (4     | )      |                                 |   | 3.15   |                      |   |   |   |   |
|                              |   |           |   |   |                                 |   |   |                      |   |   |   |   |
| Outstanding at March 31, 2011     |   |           | 215    |   |                                 | $      | 3.14   |                      |   | $ | 1,282 |   |
|                              |   |           |   |   |                                 |   |   |                      |   |   |   |   |
| Exercisable at March 31, 2011     |   |           | 51     |   |                                 | $      | 2.03   |                      |   | $ | 361 |   |

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Table of contents

|                     |   |   |    |   |   |                            | Outstanding    |   |                                        | Exercisable |   |
|--------------------------|--------|--------|---------|--------|--------|---------------------------------|----------------|--------|---------------------------------------------|-------------|--------|
| Range of Exercise Prices |   |   | Options |   |   | Weighted Average Exercise Price |           |   | Weighted Average Remaining Contractual Life |        |   | Options |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Life |   |
|                     |   |   |    |   |   |                            | (in thousands) |   |                                        | (per share) |   |   | (in years) |   |   | (in thousands) |   |   | (per share) |   |   | (in years) |   |
|                     |   |   |    |   |   |                            |           |   |                                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                        | 1.25   |   | to      |   | $      | 2.00                            |           |   |                                        | 37          |   |   | $ | 1.37 |   |   |   | 6.4 |   |   |   | 22 |   |   | $ | 1.46 |   |   |   | 5.4 |   |
| $                        | 2.01   |   | to      |   | $      | 3.00                            |           |   |                                        | 126         |   |   |   | 2.36 |   |   |   | 7.9 |   |   |   | 21 |   |   |   | 2.22 |   |   |   | 2.2 |   |
| $                        | 3.01   |   | to      |   | $      | 3.15                            |           |   |                                        | 8           |   |   |   | 3.15 |   |   |   | 4.2 |   |   |   | 8 |   |   |   | 3.15 |   |   |   | 4.2 |   |
| $                        | 6.88   |   | to      |   | $      | 6.88                            |           |   |                                        | 44          |   |   |   | 6.88 |   |   |   | 9.7 |   |   |   | — |   |   |   | N/A |   |   |   | N/A |   |
|                     |   |   |    |   |   |                            |           |   |                                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                        | 1.25   |   | to      |   | $      | 6.88                            |           |   |                                        | 215         |   |   | $ | 3.14 |   |   |   | 7.9 |   |   |   | 51 |   |   | $ | 2.03 |   |   |   | 3.9 |   |

| 6.     Earnings per Share |
|-----------------------------------------------|

|                                                               |   | Three MonthsEnded March 31,             |    |
|--------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                               |   | 2011                                    |    |   | 2010 |   |
|                                                               |   | (In thousands, exceptper share amounts) |    |
| Numerator for basic and diluted earnings per share:                |   |                                    |    |   |   |   |
| Net income                                                         |   | $                                       | 16      |   |   | $ | 209 |   |
|                                                               |   |                                    |    |   |   |   |   |   |
| Denominator for basic earnings per share:                          |   |                                    |    |   |   |   |   |   |
| Weighted average common shares outstanding                         |   |                                    | 18,819  |   |   |   | 17,074 |   |
| Dilutive effect of stock options on weighted average common shares |   |                                    | 109     |   |   |   | 27 |   |
| Denominator for diluted earnings per share                         |   |                                    | 18,928  |   |   |   | 17,101 |   |
| Basic and diluted earnings per share                               |   | $                                       | — |   |   | $ | 0.01 |   |

| 7.     Comprehensive Income |
|-------------------------------------------------|

|                                                                      |   | Three MonthsEnded March 31, |   |
|---------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                      |   | 2011                        |   |   | 2010 |   |
|                                                                      |   | (In thousands)              |   |
| Net income                                                                |   | $                           | 16     |   |   | $ | 209 |   |
| Other comprehensive income (loss):                                        |   |                        |   |   |   |   |   |   |
| Unrealized gains (losses) on derivative financial instruments, net of tax |   |                        | 62     |   |   |   | (43 | ) |
| Comprehensive income                                                      |   | $                           | 78     |   |   | $ | 166 |   |

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| 8.     Merger with KBC |
|--------------------------------------------|

|                                                |   | Three Months Ended March 31,    |    |
|-----------------------------------------------------|--------|---------------------------------|---------|
|                                                |   | 2011                            |    |   | 2010 |   |
|                                                |   | ActualResults                   |    |   | Pro formaResults |   |
|                                                |   | (In thousands,except per share) |    |
|                                                |   |                            |    |   |   |   |   |   |
| Net sales                                           |   | $                               | 32,297  |   |   | $ | 27,496 |   |
|                                                |   |                            |    |   |   |   |   |   |
| Gross profit                                        |   | $                               | 9,228   |   |   | $ | 9,195 |   |
|                                                |   |                            |    |   |   |   |   |   |
| Income (loss) before income tax provision (benefit) |   | $                               | 26      |   |   | $ | (557 | ) |
|                                                |   |                            |    |   |   |   |   |   |
| Net income (loss)                                   |   | $                               | 16      |   |   | $ | (357 | ) |
|                                                |   |                            |    |   |   |   |   |   |
| Basic and diluted earnings (loss) per share         |   | $                               | — |   |   | $ | (0.02 | ) |

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Table of contents

| 9.     Income Taxes |
|-----------------------------------------|

| 10.   Subsequent Events |
|-----------------------------------|

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ITEM 2.

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|                                         |   | Three MonthsEnded March 31, |    |
|----------------------------------------------|--------|-----------------------------|---------|
|                                         |   | 2011                        |    | 2010 |   |
| Sales                                        |   |                        | 108.2   | % |   | 106.8 | % |
| Less excise taxes                            |   |                        | 8.2     |   |   | 6.8 |   |
| Net sales                                    |   |                        | 100.0   |   |   | 100.0 |   |
| Cost of sales                                |   |                        | 71.4    |   |   | 75.1 |   |
| Gross profit                                 |   |                        | 28.6    |   |   | 24.9 |   |
| Selling, general and administrative expenses |   |                        | 28.8    |   |   | 22.6 |   |
| Operating income (loss)                      |   |                        | (0.2)   |   |   | 2.3 |   |
| Income from equity investments               |   |                        | 1.1     |   |   | 0.3 |   |
| Interest expense                             |   |                        | (0.8)   |   |   | (1.4) |   |
| Interest and other income, net               |   |                        | — |   |   | 0.2 |   |
| Income before income taxes                   |   |                        | 0.1     |   |   | 1.4 |   |
| Income tax provision                         |   |                        | — |   |   | 0.6 |   |
| Net income                                   |   |                        | 0.1     | % |   | 0.8 | % |

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|                                         |   | Three MonthsEnded March 31, |   |   |  Increase / |   |   | %          |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|------------------|--------|--------|------------|--------|
|                                         |   | 2011                        |   |   | 2010             |   |   | (Decrease) |   |   | Change |   |
|                                         |   | (Dollars in thousands)      |   |   |             |   |
|                                         |   |                        |   |   |             |   |   |       |   |   |   |   |
| Sales                                        |   | $                           | 34,960 |   |             | $      | 29,323 |       |   | $ | 5,637 |   |   |   | 19.2 | % |
| Less excise taxes                            |   |                        | 2,663  |   |             |   | 1,871  |       |   |   | 792 |   |   |   | 42.3 |   |
| Net sales                                    |   |                        | 32,297 |   |             |   | 27,452 |       |   |   | 4,845 |   |   |   | 17.6 |   |
| Cost of sales                                |   |                        | 23,069 |   |             |   | 20,605 |       |   |   | 2,464 |   |   |   | 12.0 |   |
| Gross profit                                 |   |                        | 9,228  |   |             |   | 6,847  |       |   |   | 2,381 |   |   |   | 34.8 |   |
| Selling, general and administrative expenses |   |                        | 9,289  |   |             |   | 6,205  |       |   |   | 3,084 |   |   |   | 49.7 |   |
| Operating income (loss)                      |   |                        | (61    | )      |             |   | 642    |       |   |   | (703 | ) |   |   | (109.5 | ) |
| Income from equity investments               |   |                        | 356    |   |             |   | 85     |       |   |   | 271 |   |   |   | 318.8 |   |
| Interest expense                             |   |                        | (282   | )      |             |   | (399   | )          |   |   | (117 | ) |   |   | (29.3 | ) |
| Interest and other income, net               |   |                        | 13     |   |             |   | 53     |       |   |   | (40 | ) |   |   | (75.5 | ) |
| Income before income taxes                   |   |                        | 26     |   |             |   | 381    |       |   |   | (355 | ) |   |   | (93.2 | ) |
| Income tax provision                         |   |                        | 10     |   |             |   | 172    |       |   |   | (162 | ) |   |   | (94.2 | ) |
| Net income                                   |   | $                           | 16     |   |             | $      | 209    |       |   | $ | (193 | ) |   |   | (92.3 | ) % |

|                       |   | Three MonthsEnded March 31, |    |   | Increase / |   |   | %          |   |
|----------------------------|--------|-----------------------------|---------|--------|------------|--------|--------|------------|--------|
|                       |   | 2011                        |    |   | 2010       |   |   | (Decrease) |   |   | Change |   |
|                       |   | (Dollars in thousands)      |    |   |       |   |
| Sales Revenues by Category |   |                        |    |   |       |   |   |       |   |   |   |   |
| A-B and A-B related (1)    |   | $                           | 28,447  |   |       | $      | 24,100 |       |   | $ | 4,347 |   |   |   | 18.0 | % |
| Pubs and other (2)         |   |                        | 5,413   |   |       |   | 2,547  |       |   |   | 2,866 |   |   |   | 112.5 |   |
| Contract brewing           |   |                        | 1,100   |   |       |   | 415    |       |   |   | 685 |   |   |   | 165.1 |   |
| Alternating proprietorship |   |                        | — |   |       |   | 2,261  |       |   |   | (2,261 | ) |   |   | (100.0 | ) |
| Total Sales                |   | $                           | 34,960  |   |       | $      | 29,323 |       |   | $ | 5,637 |   |   |   | 19.2 | % |

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|               |   | Three Months Ended March 31, |   |           |   |       |   |
|--------------------|--------|------------------------------|--------|----------------|--------|------------|--------|
|               |   | 2011 Shipments               |   | 2010 Shipments |   | Increase / |   | % |   |
|               |   | Draft                        |   | Bottle         |   | Total      |   | Draft |   | Bottle |   | Total |   |  (Decrease) |   |  Change |   |
|               |   | (In barrels)                 |   |           |   |       |   |
| A-B                |   | 52,300                       |   | 84,600         |   | 136,900    |   | 49,900 |   | 72,400 |   | 122,300 |   | 14,600 |   | 11.9 | % |
| Contract brewing   |   | 7,800                        |   | 500            |   | 8,300      |   | 4,800 |   | — |   | 4,800 |   | 3,500 |   | 72.9 |   |
| Pubs and other (1) |   | 2,000                        |   | 700            |   | 2,700      |   | 1,300 |   | 300 |   | 1,600 |   | 1,100 |   | 68.8 |   |
| Total shipped      |   | 62,100                       |   | 85,800         |   | 147,900    |   | 56,000 |   | 72,700 |   | 128,700 |   | 19,200 |   | 14.9 | % |

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|              |   | Three Months Ended March 31, |   |           |   |       |   |
|-------------------|--------|------------------------------|--------|----------------|--------|------------|--------|
|              |   | 2011 Shipments               |   | 2010 Shipments |   | Increase / |   | % |   |
|              |   | Draft                        |   | Bottle         |   | Total      |   | Draft |   | Bottle |   | Total |   |  (Decrease) |   |  Change |   |
|              |   | (In barrels)                 |   |           |   |       |   |
|              |   |                         |
| Widmer Brothers   |   | 30,600                       |   | 31,800         |   | 62,400     |   | 30,600 |   | 30,600 |   | 61,200 |   | 1,200 |   | 2.0 | % |
| Redhook           |   | 10,800                       |   | 29,300         |   | 40,100     |   | 11,000 |   | 27,000 |   | 38,000 |   | 2,100 |   | 5.5 |   |
| Kona              |   | 12,900                       |   | 24,200         |   | 37,100     |   | 9,600 |   | 15,100 |   | 24,700 |   | 12,400 |   | 50.2 |   |
| Total shipped (1) |   | 54,300                       |   | 85,300         |   | 139,600    |   | 51,200 |   | 72,700 |   | 123,900 |   | 15,700 |   | 12.7 | % |

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ITEM 3

ITEM 4

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ITEM 1

ITEM 6

| 2.1  |   | Joinder to Equity Purchase Agreement dated May 2, 2011 (incorporated by reference from Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on May 4, 2011 (“May 4, 2011 Form 8-K”))                                                                                                            |
|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.2  |   | Equity Purchase Agreement by and among each of the members of Fulton Street Brewery, LLC, as Sellers, and Anheuser-Busch, Incorporated (“A-B”), as Purchaser, dated as of February 18, 2011 (incorporated by reference from Exhibit 2.2 to the Registrant’s Form 10-K for the year ended December 31, 2010) |
| 10.1 |   | Amended and Restated Exchange and Recapitalization Agreement dated as of May 1, 2011 between the Registrant and A-B (incorporated by reference from Exhibit 10.1 to the Registrant’s May 4, 2011 Form 8-K)                                                                                                              |
| 10.2 |   | Amended and Restated Master Distributor Agreement dated as of May 1, 2011 between the Registrant and A-B (incorporated by reference from Exhibit 10.2 to the Registrant’s May 4, 2011 Form 8-K)                                                                                                                         |
| 31.1 |   | Certification of Chief Executive Officer of Craft Brewers Alliance, Inc. pursuant to Exchange Act Rule 13a-14(a)                                                                                                                                                                                                              |
| 31.2 |   | Certification of Chief Financial Officer of Craft Brewers Alliance, Inc. pursuant to Exchange Act Rule 13a-14(a)                                                                                                                                                                                                              |
| 32.1 |   | Certification pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350                                                                                                                                                                                                                                              |

| 99.1 |   | Press Release dated May 16, 2011  |
|------|--------|----------------------------------------|

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SIGNATURES

|                     | CRAFT BREWERS ALLIANCE, INC. |
|--------------------------|------------------------------|
|                     |                         |   |
| May 16, 2011   | By:                          | /s/ Joseph K. O’Brien |
|                     |                         |       Joseph K. O’Brien |
|                     |                         |       Controller and Chief Accounting Officer |
|                     |                         |   |

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