|
|
According to the State Auditor’s office, the Grand Marais Municipal off-sale Liquor store reported $2,453,321 in sales for 2021, a 12.9 percent increase over 2020.
With a population of 1,346, sales at the Grand Marais liquor store were strong, with net profits at $310,956. Grand Marais ranked 53rd in off-sales in city liquor store operations in Minnesota.
Each year the city of Grand Marais takes $200,000 from the liquor store to help offset the levy, and 2021 was no different.
Two Harbors, population 3,864, municipal off-sale took in $3,086,004; when factoring revenues versus expenses, only $1,832 was transferred to the city’s general fund. Net profits were listed at $305,571 for the year. Two Harbors off sales, like most municipal liquor stores in 2021, was up 9.9 percent from 2020, which was impacted by the COVID-19 pandemic. Two Harbors was ranked 44th state-wide in gross liquor sales. liquor off-sal
Silver Bay, population 1,862, off sale generated $1,232,387 in 2021, up 9.2 percent over 2020. After profits and losses, Silver Bay’s municipal store was up $113,225, with $30,990 transferred to the city’s coffers.
State Auditor Julie Blaha released the 2021 Analysis of Municipal Liquor Store Operations report on Thursday, December 15.
The report provides comparative data on liquor operations owned and operated by Minnesota cities.
“The most striking data point is the historic increase of on-sale operations profit and sales. After struggling during the closures of 2020, Minnesota’s on-sale liquor operations bounced back with a 105 percent increase in profits for 2021,” said State Auditor Blaha. “In addition to strong profit growth, the number of unprofitable on-sale operations declined from 35 in 2020, to just seven in 2021.”
Overall, municipal liquor store profits were up one percent in 2021, with on-sale operations faring much better than off-sale operations. As a result, between 2020 and 2021, the net income of on-sale municipal liquor stores rose 105 percent, while the net income decreased by 9 percent for off-sale stores.
State law requires cities whose liquor operations show a net loss in at least two of the past three years to hold a public hearing to determine whether to continue liquor operations. Based on 2021 data, 20 cities are required to hold a hearing in 2022 compared to 24 in 2021.
Highlights of the report include:
The combined net profit of all municipal liquor operations totaled $36.5 million in 2021. This represents an increase of $456,993, or 1.3 percent, over the amount generated in 2020. In on-sale operations, net profits totaled $6.4 million in 2021, an increase of $3.3 million, or 105.0 percent, over 2020. Conversely, net profits for off-sale operations totaled $30.1 million in 2021, representing a decrease of $2.8 million, or 8.5 percent, from 2020.
Over the past five years, net profits increased 57.9 percent. In addition, there was a 45.1 percent increase in net profits among off-sale operations, while on-sale establishments showed an increase of 172.5 percent.
Thirteen Minnesota cities reported net losses for 2021 (24 fewer than in 2020). Twelve of the 13 cities with losses are in Greater Minnesota.
During 2021, Minnesota’s municipal liquor operations reported a 26th consecutive year of record sales totaling $423.5 million. Total sales in 2021 increased by $12.9 million, or 3.2 percent, over 2020. Among individual liquor operations that were in business for all of 2021, total sales ranged from $98,830 in Elmore to $19.7 million in Lakeville.
During 2021, Minnesota’s municipal liquor operations reported operating expenses totaling $86.3 million. This represents an increase of $4.9 million, or 6.0 percent, over the amount reported in 2020.
Municipal liquor operations within the Metro Area are considerably more extensive and more profitable than their Greater Minnesota counterparts. Although only 18 of the 177 Minnesota cities (10.2 percent) that own and operate municipal liquor stores are in the Metro Area, they represent 33.5 percent of the total sales and 26.2 percent of the net profits of municipal liquor operations. Sales by all Metro Area municipal liquor operations, averaged $3.6 million in 2021, compared to average sales of $1.6 million for all Greater Minnesota operations.
During 2021, Minnesota’s municipal liquor stores had net transfers (transfers out minus transfers in) of $23.1 million. This represents an increase of 8.3 percent from the total net transfers made in 2020. In addition, net transfers totaled $8.1 million among Metro Area establishments, compared to $15.0 million for Greater Minnesota.
Leave a Reply