TCCC controls approximately 18.7% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and the TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $15.8 million and $13.2 million for the three-months ended June 30, 2019 and 2018, respectively, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $27.9 million and $24.5 million for the six-months ended June 30, 2019 and 2018, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers/distributors, were $5.0 million and $4.3 million for the three-months ended June 30, 2019 and 2018, respectively, and are included in operating expenses. TCCC commissions, based on sales to TCCC independent bottlers/distributors, were $8.8 million and $7.5 million for the six-months ended June 30, 2019 and 2018, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2019 and 2018 were $21.3 million and $39.6 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2019 and 2018 were $38.6 million and $74.6 million, respectively. As part of TCCC’s North America refranchising, the territories of certain TCCC Subsidiaries have been transitioned to certain independent TCCC bottlers/distributors and/or TCCC Related Parties. Accordingly, the Company’s net sales classified as sales to the TCCC Subsidiaries significantly decreased for the three- and six-months ended June 30, 2019.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company's bottlers/distributors. Concentrate purchases from TCCC were $7.3 million and $11.3 million for the three-months ended

June 30, 2019 and 2018, respectively. Concentrate purchases from TCCC were $13.9 million and $14.2 million for the six-months ended June 30, 2019 and 2018, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $4.4 million and $6.4 million for the three-months ended June 30, 2019 and 2018, respectively. Such contract manufacturing expenses were $8.9 million and $11.8 million for the six-months ended June 30, 2019 and 2018, respectively.

Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at:


	June 30,		December 31,
	2019		2018
Accounts receivable, net	$	52,582	$	25,312
Accounts payable	$	(39,187)	$	(54,430)
Accrued promotional allowances	$	(4,372)	$	(4,044)

One director of the Company and his family, and one director's family, are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended June 30, 2019 and 2018 were $0.3 million and $0.6 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2019 and 2018 were $0.6 million and $1.4 million, respectively.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. The Company’s initial 50% contribution of $1.9 million was accounted for as an equity investment and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet at December 31, 2018. During the three-months ended June 30, 2019, the Company made no additional capital contributions and recorded an equity loss of $0.02 million. During the six-months ended June 30, 2019, the Company made an additional $0.05 million capital contribution and recorded an equity loss of $0.04 million. As of June 30, 2019, the Company’s equity investment is $1.9 million and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet at June 30, 2019.