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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want to be as far as sale times, days, and whether to offer licenses to private businesses. For on-premise, cities can also decide if they want both private and public sale, which requires a referendum.” Each community in Minnesota makes its own decisions about how to balance sales in a responsible way that conforms to their local norms. For example, some towns don’t allow kegs because the residents feel it leads to underage drinking. The stores also bal- ance pricing and product selection with their need to remain competitive. While they enjoy geo- graphic exclusivity within their municipality, there’s often a privately-owned store down the road in the next town over competing for business. “The municipal stores face the same pressures as anyone else, control state or not,” says Kaspszak. “They face the privatization question, often for differ- ent reasons than the ones state legislatures are using now in control states. Often a town privatizes for philosophical reasons, because the town itself is absorbed into another municipality, or the city council is unwilling to provide the necessary funds and infra- structure to compete in the marketplace.” In general, Kaspszak says most towns are modernizing and expanding their operations, and the ones that pay attention to market trends are Minnesota Municipally- Owned Beverage Stores All dollar amounts are rounded to the nearest tenth Towns Served: 214 Population Served: Retail Locations: Operating Revenue: Operating Expenses: Cost Sales: Revenue Contribution: 911,244 243 $303.0 m $64.6 m $219.0 m $17.8 m Source: Minnesota Office of the State Auditor, “Analysis of Minnesota Municipal Liquor Store Operations 2008” (2008 is the most recent fiscal year available) StateWays www.stateways.com March/April 2011 succeeding. His organization, the MMBA, actively visits member stores and gives them the tools and information to succeed in a difficult economic environment and a unique con- trol structure. One such member store is Rogers Wines & Spirits in Rogers, MN. Spirits demonstrates how a public store can survive – and thrive – in a hybrid control system. Liquor Operations Manager Gary Buysse attributes his store’s success (his annual sales are approximately $3 million) to community involvement. A “We’re not just a liquor dispensary; we’re a part of the community.” — Gary Buysee, Liquor Operations Manager, Rogers Wines & Spirits “We work with high school parents and sponsor alcohol-free events for graduates, we encourage organizations to utilize us as a fundraiser by hosting wine events, and we consider ourselves a community asset,” Buysse says. Like most private and public outlets, Rogers strug- gles to retain customer numbers and profitability in the touch economic conditions. The store was helped by an expansion from a 900 square-foot facility into its current 11,000 square-foot on- and off-premise opera- tion. The extra space not only provides additional room for product selection, but allows Buysse to hold events. “Our approach to wine events is very innovative, because we use them to generate revenue for causes,” Buysse says. “We’ve raised money for highschools, churches, groups that volunteer in the Dominic Republic. We’re not just a liquor dispensary; we want to help our community.” SW 11 A Control Mechanism and a Community Asset s the largest combination on- and off-sale store in the state of Minnesota, Rogers Wine &