By
Joel Myhre, Fergus Falls Journal
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."
