Once again the Grand Marais Municipal Liquor store showed substantial profits for its’ 2016 operations, reported Minnesota State Auditor Rebecca Otto.
Otto released the state auditor’s analysis of municipal liquor store operations on November 7. In the report, it showed that 45 Minnesota cities reported net losses for 2016, up 11 cities from 2015.
According to the analysis, “The 45 cities that reported net losses in 2016 included Tracy ($35,985); Fairfax ($31,226); Butterfield ($17,734); Vesta ($16,029); Walnut Grove ($15,517); Sleepy Eye ($11,848); and Hanska ($6,663).
At the same time, Minnesota’s municipal liquor operations showed a 21st consecutive year of record sales, totaling $344.4 million. Total 2016 sales increased by $7.2 million, or 2.1 percent over 2015, according to the report.
Municipal liquor operations in the Metro Area are considerably more extensive and more profitable than their Greater Minnesota counterparts, the report read.
Fairfax, which operated an on and off-sale store, showed $263,831 in gross profits in 2016 while operating expenses were $296,227.
Hanska also operates an on-and-off-sale store. It reported $104,593 in gross profits and $126,094 in operating expenses.
In 2016, 195 cities operated 228 municipal liquor stores, with 99 cities operating both on-sale and offsale liquor stores.
“We had a good summer,” said Chris LaVigne, manager of the Grand Marais liquor store. “Our Sunday sales have been good, although they have slowed some as of late. Still, it’s well worth being open on Sundays.”
The high Canadian exchange rate has probably had some effect on slowing sales to our friends from the north, said LaVigne, but, he added, he had seen an uptick in buying from locals.
“We have been trying to keep product costs down by buying in larger volumes. The public has noticed our lower prices, and we see more locals shopping here and supporting us.”
Profits from the liquor store help to lower the cites levy and provide traditional supplemental tax and fee revenues.
Executive summary
. The combined net profit of all municipal liquor operations totaled $22.8 million in 2016. This represents a decrease of $2.1 million, or 8.4 percent, from the amount generated in 2015.
. Among on-sale operations, net profits totaled $2.9 million in 2016, which was a decrease of $674,813, or 18.8 percent, from 2015.
. Total net profits for off-sale operations totaled $19.9 million in 2016, which represents a decrease of $1.4 million, or 6.6 percent, from 2015.
. Over the past five years, net profits have decreased 16.4 percent. Among off-sale stores, there was a 15.4 percent decrease in net profits, while on-sale outlets showed a reduction of 22.3 percent.
. During 2016, Minnesota’s municipal liquor operations reported a 21st consecutive year of record sales, totaling $344.4 million. Total sales generated in 2016 increased by $7.2 million, or 2.1 percent, over 2015. Among individual liquor operations that were in business for all of 2016, total sales ranged from $44,950 in Round Lake to $14.1 million in Lakeville.
. Grand Marais, which operates only an off-sale had 2016 sales that totaled $2,102, 551 for a profit of $391, 569.
. With sales of $538,241, Beaver Bay showed a gain of $2,044. Finlayson reported a profit of $38,115. Silver Bay’s on-and off-sale showed a year-end benefit of $7,008. And Two Harbors off-sale netted a cool $245,544.
. Statewide, Grand Marais municipal liquor store ranked 53 in gross sales while showing an 18.6 percent profit.
. The Arrowhead’s seven-county Region brought in 1.6 million in profits in 2016.
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