Stateways

Stateways Nov-Dec 2014

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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StateWays Q www.stateways.com Q November/December 2014 18 AN ANNUAL REPORT PROVIDING THE LATEST DATA FROM THE CONTROL STATES BY MATT REMSBERG CONTROL STATES' FISCAL YEAR IN REVIEW 2014 T he results of our annual fi scal year survey of the control states once again show an overall increase in gross sales and revenue contribu- tions compared to last year's results. The rate of those increases has slowed compared to previous years, which can be attributed to the continued challenges faced by Pennsylvania (the highest revenue- generating state by nearly a two-to-one margin) as the state remains locked in a battle over the privatization of its operation. This is the 18th consecutive year that StateWays is presenting its annual review of the fi nancial progress being made throughout the control states, providing an overview of the beverage alcohol business. This is based on reports from all 18 control jurisdictions, and we're grateful to the control state agencies and personnel who provided extensive information to help us compile this annual report. Our data details state-by-state dollar sales, revenue contribution, distilled spirits and wine (where applicable) sales volume, operating expenses, and the numbers of types of outlets and employees in the system. We've also includ- ed projected sales volumes and revenue contributions for the Fiscal Year 2015. Where appropriate, we've published brief descriptions of any additional circumstances a state would like to provide that might amplify what is going on in a state's beverage alcohol operation. In addition to this individual state information, we've ranked the jurisdictions based on their total sales and aggregated some key statistics to give an overall sense of the growth and size of business throughout the control states. Positive Results For most states, Fiscal Year 2014 ran through June 30 (except for Alabama and Michigan, where it ran through Sept. 30), and for that time period, control state operations continued to deliver positive results as they have since we began tabulating these results almost two decades ago. Total gross sales grew 2.7 percent be- tween FY 2013 and FY 2014 to $9.29 billion (up from 9.05 billion in FY 2013). The overall gross revenue gain was slightly more than half of the 5.3 percent increase from FY 2012 to FY 2013. Overall revenue contribu- tion to state coffers by control jurisdictions increased 1.1 percent to $2.72 billion (up from $2.69 billion in FY 2013). Distilled spirits case volume decreased 1.9 per- cent to 46.0 million cases in FY 2014 (down from 46.9 million cases in FY 2013). Operating expenses were up 4.4 percent to $1.30 billion (up from $1.08 billion in FY 2013). Once again, employment among control state agencies showed a mixed picture. Overall, six jurisdic- tions decreased staff, six remained the same, while six increased staff. And this year, 11 states added agen- cies, state stores, or retail outlets while seven states remained the same. No jurisdictions saw a decreased number of outlets. Still, these reports for both em- ployee head counts and outlets are fungible, since, for example, the number of private retail outlets may rise statewide while one or two state stores may have closed; at the same time, the number of full-time em- ployees may decrease while the number of part-timers may increase.

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