By Kari Petrie, St. Cloud Times

After several years of declining profits, the Sauk Rapids municipal liquor store had a turnaround year in 2013.

The liquor store more than doubled its profits in 2013 compared with 2012. In 2012, the store made a net profit of $62,400, and in 2013, it made about $140,000.

Liquor store manager Tom Boulton gave the Sauk Rapids City Council an update on Monday about the store's operations.

He said 2013 was the best year the store has had since 2004.

In recent years, the Sauk Rapids liquor store has seen a drop in its net profits.

From 2008 to 2012, the store had a 50 percent drop in net profits, according to reports from the State Auditor's Office.

In 2008, the store made $124,000.

Boulton attributes the turnaround to more advertising, using social media and better ordering.

He said they work to have comparable prices with the other liquor stores in the area. Boulton started managing the store in September 2012.

The store has started a wine club that had about 30 participants at an event last week.

All the tickets for the April event are already reserved, but Boulton hopes to add seats.

Boulton said the store has also increased its options in craft beer, which has grown in popularity.

Statewide, municipal liquor stores saw a 33.7 percent increase in net profits from 2008 to 2012, according to the auditor's 2012 report.

Off-sale stores, like Sauk Rapids, saw a 27.6 percent increase during that time period.

In 2012, municipal off-sale liquor stores in outstate Minnesota saw an average net profit of $176,000, according to the report, which was released last month.

In 2012, Sauk Rapids paid about $422,000 in operating expenses at the liquor store, according to the auditor's report. 

Johnson Brothers Liquor Company Scholarship Program provides financial assistance to graduating high school seniors in order for them to continue their education at a college, university or licensed trade or vocational school in the United States.   

Multiple scholarships are awarded annually and range from $5,000 to $8,000 per scholarship.

The program is now accepting applications for 2014 graduating students seeking a scholarship for the upcoming 2014-2015 school year.  

Applications must be received by May 1, 2014.  Awardees will be notified by June 15, 2014."

By any measurement, the Fergus Falls Municipal Liquor Store had a big year in 2012, according to a recently released report by the State Auditor's Office.

With more than $5.5 million in gross sales, the store was ranked 10th out of the 207 municipal liquor stores in the state in terms of gross sales, and the nine ahead of Fergus Falls were all Twin Cities suburban communities.  

The store's gross sales increased by $275,129, or 5.2 percent compared to 2011.

Fergus Falls was also ranked 21st in terms of net profit as a percentage of sales, at 12.3 percent with $679,514 in net profits in 2012.  

Net profits also increased by $99,231 compared to 2011, a 17 percent increase.

Fergus Falls Municipal Liquor Store operations manager Brian Olson attributes much of the success to the growth of the new store on the city's west side, which opened in April of 2003.  

Gross sales have increased 83 percent, and net profits 56 percent, compared to 2002, the year the store opened.

"Everything (city officials) said would happen with this place is happening," Olson said. "It's doing what it's supposed to do."

Olson said he also attributes increased sales to the trend of consumers buying higher quality - and more expensive - beer, wine and spirits, according to Olson.

"The craft beer type stuff is just exploding," Olson said. "Younger adults these days drink much higher-shelf products."

He pointed out that the store's wine club, started a decade ago, has been consistently growing, and that his staff has grown more knowledgeable about the newest trends in beer, wine and spirits.

"We have good liquor professionals that work for us," Olson said.

The store also transferred $357,595 of its 2012 profits to the city coffers. The annual transfer amount represents about 8.5 percent of the city's tax levy, according to city finance director Bill Sonmor.  

The Fergus Falls City Council actually approved a transfer of $397,705 for 2014 based on 2013 sales.

"Brian really did a good job of pricing and managing the store," Sonmor said. "Sales went up, and cost of goods sold didn't go up as much, so that meant even more profits."

Mayor Hal Leland said the store's ability to both produce profits and use them to help offset property taxes in Fergus Falls makes it a tremendous asset to Fergus Falls.

"It's something that I hope we can continue to have in our financial arsenal," Leland said.  

"I know there are threats every year to not having municipalities dealing in the liquor industry, but it's probably the only kind of auxiliary enterprise we can have that is profitable.  

I will lobby very long and hard to continue that tradition and be able to utilize those funds." 

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