The Sunset Mercantile Company, with offices in the Day Building, Wallace, was a reorganization of the Sunset Brewery. The new beer produced for the first time in 1938 was called "Gem State." The directors in 1938 were Joseph Reubens, president; O.L. Jones, vice president; S.E. Heitfeld, secretary; Theodore Galland, and Philip Bitner. In 1940 Reubens died and Bitner was not re-elected; they were replaced by Edwin Schiller and Henry L. Day. In 1941 Schiller was replaced by Wray Farmin.

In 1943 the company was in serious financial difficulties and the directors were authorized by the shareholders to sell the property if a fair price could be obtained. The contract between Sunset Mercantile and Mutual Brewing Co., Inc., dated July 7, 1943, was cancelled a year later because of Mutual's failure to comply with the terms, and its failure to make agreed upon payments. The Sunset company then borrowed money to protect the property until it could be sold.

The year 1949 brought several board changes; Galland, Farmin, and Heitfeld resigned and were replaced by William D. Bryan, Paul B. Jessup, and Gertrude A. Bryan. The officers of the company were then empowered to make necessary arrangements for securing abstract of title to the premises on which the company's brewery was located.