Stateways March April 2011

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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Maintaining MUNICIPAL CONTROL T he nineteen control states this magazine pro- files are diverse in their handling of beverage alcohol control, but they all maintain a top- down approach to managing sales and distribution. Although that management system is more common among control jurisdictions and offers efficiencies of scale, there are other approaches that better fit local customs and attitudes. In Minnesota, there is no universal control system. Many cities and towns do regulate beverage alcohol sales, but their efforts are decentralized. More than 200 municipalities operate local liquor stores, out of approximately 850 cities and towns in the state, and those control jurisdictions represent more than $200 million in annual sales, or about 10 percent of alcohol volume sold in Minnesota. How did this hybrid system develop? Paul Kaspszak, Executive Director of the Minnesota Municipal Beverage Association, the organization that advises local control jurisdictions, says it all started after prohibition ended. “The cities decided that if there was going to be distribution, it would be better if they controlled it,” he says. “Local authorities decide how restrictive they 10 Rogers Wines & Spirits Location: Rogers, MN (Population 7,500) Size: 11,000 square feet (on- and off-sale) Employees: 23 Annual Sales: Approximately $3 million StateWays   March/April 2011

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