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
Issue link: https://read.dmtmag.com/i/93802
press, a statewide poll in Pennsylvania, the largest con- trol state, showed that voters favored privatization by a two-to-one margin. Upbeat Results For most states, Fiscal Year 2012 runs through the middle of the 2012 calendar year (actually from mid- 2011 through mid-2012). During this period, the over- all U.S. economy saw moderate gains, but nothing like economists had been hoping for. Still, control state operations continue to deliver positive results, as they have since we began tabulating these results almost two decades ago. Total gross sales grew to $9.5 billion (from $9.02 billion in FY 2011), representing a 5.3% gain over the previous year (compared to a 3.5% gain in FY 2011). Overall revenue contribution to state coffers by control jurisdictions increased by 3.1% to $3.26 billion (from $3.16 billion in FY2011). Distilled spirits case volume rose a hefty 8.2% in FY 2012 to 50.4 million cases (compared to 46.4 million cases, a 3.6% gain in FY 2011). Most tellingly, operating expenses decreased by 3.6% in FY 2012 to $1.167 billion, from $1.211 bil- lion in FY 2011 (which also saw a 5.3% increase in operating expenses that year). As was true last year, employment among control state agencies was decidedly mixed. Indeed, among the 19 control jurisdictions, eight decreased their number of employees, three increased employee head count, while eight remained the same. And this year, six states added agencies, state stores, or retail outlets, four states remained the same, while nine jurisdictions saw a decreased number of outlets. Still, reports for both employee 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 employees may decrease while the number of part-timers may increase. State Gains Once again, every control jurisdiction increased its gross sales revenue, some by a considerable amount. At the same time, every control jurisdiction also saw its spirits case sales volume gain, with the exception of Washington State. For Washington, this year's statistics reflect sales only through May 31, 2012, one month short of a full fiscal year, but that is when the state's wholesale and retail operations ceased functioning. All but two states upped their revenue contributions to the state fund. Rank Ranked According To Fiscal Year 2012 Sales State Reported FY '12 Sales (Millions $ to nearest tenth) 1 . . . . . . . . .Pennsylvania . . . . . . . . . . . . . . .$2,079.2 2 . . . . . . . . .Michigan . . . . . . . . . . . . . . . . .$1,030.0 3 . . . . . . . . .Washington . . . . . . . . . . . . . . . .$900.5* 4 . . . . . . . . .Ohio . . . . . . . . . . . . . . . . . . . . . .$825.0 5 . . . . . . . . .North Carolina . . . . . . . . . . . . . . .$795.0 6 . . . . . . . . .Virginia . . . . . . . . . . . . . . . . . . . .$734.0 7 . . . . . . . . .New Hampshire . . . . . . . . . . . . . .$559.1 8 . . . . . . . . .Oregon . . . . . . . . . . . . . . . . . . . .$465.4 9 . . . . . . . . .Alabama . . . . . . . . . . . . . . . . . . .$377.0 10 . . . . . . . .Utah . . . . . . . . . . . . . . . . . . . . . .$322.0 11 . . . . . . . .Mississippi . . . . . . . . . . . . . . . . . .$271.2 12 . . . . . . . .Montgomery Cty, MD . . . . . . . . . .$252.3 13 . . . . . . . .Iowa . . . . . . . . . . . . . . . . . . . . . .$242.2 14 . . . . . . . .Idaho . . . . . . . . . . . . . . . . . . . . .$153.6 15 . . . . . . . .Maine . . . . . . . . . . . . . . . . . . . . .$132.5 16 . . . . . . . .Montana . . . . . . . . . . . . . . . . . . .$113.4 17 . . . . . . . .West Virginia . . . . . . . . . . . . . . . . .$92.2 18 . . . . . . . .Wyoming . . . . . . . . . . . . . . . . . . . .$90.4 19 . . . . . . . .Vermont . . . . . . . . . . . . . . . . . . . .$65.4 * Through only May 31, 2012. Source: StateWays from control state agencies 12 Several states are notable among those that reported gains in the categories we measured. Just referencing gross sales revenue, Pennsylvania, the top-ranked control state in gross sales by about a two-to-one margin, saw an increase of more than $185 million. Second-ranked Michigan saw gross sales revenues jump by $55 million in FY 2012.Even Washington, still ranked third, saw a $23.0 million gain. Fourth-ranked Ohio upped its gross sales by about $55 million, nearly doubling last year's gain. North Carolina's sales rose a noteworthy $48 mil- Category (Based on all 19 jurisdictions reporting) FY '11 Fiscal Year 2012 FY '12 % Change Gross Dollar Sales: (Millions) $9,020.8 $9,500.4 Revenue Contribution: (Millions) Distilled Spirits Sales: (Millions cases) Operating Expenses: (Millions) $3,161.9 $3,260.1 46.4 50.4 $1,211.3 $1,167.1 +5.3% +3.1% +8.2% -3.6% StateWays s www.stateways.com s September/October 2012