Municipal liquor operations in metro outshine Greater Minnesota cousins
State Auditor Rebecca Otto today (Feb. 25) released a report of municipal liquor store operations, showing a combined net profit in 2007 totaling about $22 million — an increase over the previous year.
Sales continue at a record pace, totaling almost $292 million.
Of the 31 cities reporting net losses for 2007, all 31 were from Greater Minnesota.
Metro municipal operations are bigger and more profitable than their country cousins, the report details. Sales for all metro municipal liquor operations averaged about $2.8 million, compared to the average sale of about $888,000 for all Greater Minnesota liquor store operations.
Net profits for metro municipal liquor operations was about $234,000, compared to $64,000 for liquor store operations in Greater Minnesota.
Although municipal liquor operations can make money, the auditor’s report notes that the number of cities operating liquor stores has steadily declined — there’s concerns about insurance costs, profitability.
Among the auditor’s recommendations is that municipal liquor operations with high operating costs should check other operations with lower operating costs and see how the savings are achieved.
Cities in Greater Minnesota with municipal liquor operations include Elk River, Isanti, Cambridge, North Branch, Lindstrom, Milaca and Princeton.
Metro cities include St. Francis, Anoka, Spring Lake Park, Apple Valley, Lakeville, and Farmington.
