Rebecca
Otto
Minnesota’s municipal liquor stores recorded an 18th consecutive year of record sales in 2013, according to a recent report from the Minnesota State Auditor.
State Auditor Rebecca Otto's report found the 205 cities operating 237 municipal liquor stores generated sales totaling $332.8 million in 2013, which is a $3.2 million increase over 2012. Among individual liquor operations that were in business for all of 2013, total sales ranged from $125,051 in Round Lake to $15.4 million in Lakeville.
In Koochiching County, there are four municipal liquor stores: Ranier, Littlefork, Big Falls, and Northome. Of those four, only Littlefork recorded a net loss in 2013.
Ranier
The municipal liquor store in Ranier recorded total sales of $415,438 in 2013, for a gross profit of $247,811. Combined with operating expenses of $223,532, this created a net profit of $25,152 for 2013. In 2012, Ranier recorded a net profit of $9,401.
Liquor Store Manager Gretchen Coulombe said the store's been able to turn a profit year after year because of the excellent staff and customers.
“Number one, the staff is great,” Coulombe said. “And I also have to give credit to our customers.”
The store's goal each year is to do better than the past year, she said, and for the past several years, it's been able to increase the store's profits. The city benefits from the idea of the “muni” being the hot spot to go to, she said, and as a place to meet up with friends.
Now in her 18th year as manager, Coulombe said she's seen children she used to make non-alcoholic “kiddie cocktails” for grow into drinking-age patrons, purchasing beer or alcohol on their way to the lake.
“I've been in it for so long, I always wondered when patrons disappeared or passed on, what would happen,” Coulombe said. “But that empty chair always gets filled.”
Northome
The municipal liquor store in Northome recorded total sales of $333,961 in 2013, for a gross profit of $135,831. Combined with operating expenses of $112,274, this created a net profit of $23,564 for 2013. In 2012, Northome recorded a net proft of $39,164.
Big Falls
The municipal liquor store in Big Falls recorded total sales of $337,430 in 2013, for a gross profit of $160,995. Combined with operating expenses of $152,316, this created a net profit of $9,297 for 2013. In 2012, Big Falls recorded a net profit of $7,580.
Littlefork
The municipal liquor store in Littlefork recorded total sales of $406,381 in 2013, for a gross profit of $160,421. Combined with operating expenses of $176,621, this created a net loss of $12,729 for 2013. In 2012, Littlefork recorded a net profit of $4,374.
City Administrator Sonja Pelland said the liquor store's loss can be attributed to the County Market Liquor Store opening up in International Falls in September 2013. Current Littlefork Liquor Store Manager Lorina Hauner was approved by the Littlefork City Council in October 2013.
Pelland said some of the loss can also be attributed to the loss of jobs at the local Boise Paper, a Packaging Corporation of America mill in International Falls. The store is supposed to generate funds for the city, she said, and officials said they hope to break even each year.
“If it breaks even, that's what we're shooting for,” Pelland said. “If not, then at least we've provided jobs for the community.”
Highlights from the overall report include:
- The combined net profit of all municipal liquor operations totaled $26.8 million in 2013. This represents a decrease of $500,522, or 1.8 percent, from the amount generated in 2012.
- During 2013, Minnesota’s municipal liquor stores transferred $18.6 million of their profits to other city funds. This represents a decrease of 19.2 percent from the total net transfers made in 2012. Net transfers totaled $7.0 million among metro area establishments, compared to $11.6 million for greater Minnesota establishments.
- Municipal liquor operations located within the metro area are considerably larger and more profitable than their greater Minnesota counterparts. Although only 19 of the 205 Minnesota cities, or 9.3 percent, that own and operate municipal liquor stores are located in the metro area, they represent 37 percent of the total sales and 36.5 percent of the net profits of municipal liquor operations. Sales by all metro area operations averaged $3.2 million in 2013, compared to average sales of $1.1 million for all greater Minnesota municipal liquor operations.
- Over the past five years, net profits have increased 22.5 percent. Among off-sale stores, there was an 18.6 percent increase in net profits, while on-sale stores showed an increase of 56.6 percent.
- Thirty-three Minnesota cities reported net losses for 2013, compared to 25 cities in 2012. All 33 cities with losses are located in greater Minnesota.
According to the report, Minnesota municipalities were originally authorized to own and operate liquor establishments as a means of controlling the sale of alcohol. 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 to these functions, profitable municipal liquor operations have provided another source of revenue to supplement traditional tax and fee revenues.
