Municipal liquor stores reported record sales in 2011
ST. PAUL – During 2011, 16th Minnesota municipal liquor stores reported record sales for the 16th straight year, totaling $317.2 million in sales.
Total sales in 2011 increased by $3.8 million, 1.2 percent greater than 2010. Total sales ranged from $81,839 in Canton to $14.4 million in Lakeville, according to State Auditor Rebecca Otto’s 2011 Analysis of Municipal Liquor Store Operations.
The combined net profit of all municipal liquor stores was $23.4 million in 2011, a $1.7 million (eight percent) increase over 2010, according to the report.
Over the past five years, net municipal liquor store profits increased 4.4 percent. Off-sale stores showed a 6.5 percent net profit hike while on-sale stores showed a 9.9 percent decrease.
Area cities with municipal liquor stores and their 2011 net income were Fairfax $653, Hanska $11,962, Redwood Falls $128,164 and Sleepy Eye $176,785.
In 2011, 208 Minnesota cities operated 240 municipal liquor stores, with 114 cities operating both on-sale and off-sale establishments and 94 cities with off-sale only stores.
While most of the municipally-owned liquor stores are located in Greater Minnesota, 19 cities in the Seven-County Metro Area own and operate liquor stores.
For many communities in Greater Minnesota, municipal liquor operations provide access and convenience in areas that might be unable to attract a privately-run establishment.
In addition, profitable municipal liquor operations have provided another revenue source to supplement traditional tax and fee revenues.
Sales by all Metro Area operations averaged $3 million in 2011. Average sales in Greater Minnesota municipal liquor operations were $988,189.
To view the complete report including an executive summary, tables, charts and graphs, visit www.auditor.state.mn.us/default.aspx?/page=20130329.000/