From Deseret News archives:
State liquor sales up 6%
The Utah Department of Alcoholic Beverage Control Commission heard a cheery sales report from financial officer Leonard Langford Wednesday indicating that retail sales are up more than 6 percent over last year, the distribution warehouse is receiving 20-30 semitrailer loads a day and, in that same day, sending out 13,000-14,000 cases of alcohol to the government-controlled retail outlets throughout the state.
But even though the overall numbers are up, consumers are being more price conscious in their purchases. One aspect of sales this year is a drop in "case volume" versus retail sales, Langford said, which is an indication that consumers are opting for lesser-priced "items" than in previous years.
Kevin Hagerg, who manages the Avenues store, said that reflects what he's seeing at that location.
"People are definitely looking for deals," Hagerg said. "Sale items are doing very well."
Their increased sales are not slowing, even in the increasingly dire economic times. Of note, Langford said, were their sales on one of their busiest days every year.
"Just another highlight," Langford said. "The day before Thanksgiving last year we sold $2 million ... this year we sold $2.14 million."
As Langford completed his report, one commission member quipped, "Keep those numbers rolling."
And rolling those numbers are. DABC accountant David Higley said year-to-date (July through December) sales are $105.9 million, up from $99.8 million last year and $84.5 million two years ago. The agency operates 41 retail stores and 100 package agencies (outlets operated privately, but under state license) and a single outlet can generate a surprising amount of revenue. The No. 1 store, located in Cottonwood Heights, did $18 million in sales last year.
One family of products new to state liquor store shelves was last year's red-hot legislative topic — "alcopops." The flavored malt beverages (i.e., Mike's Hard Lemonade, Smirnoff Ice, etc.) have just been re-introduced to the Utah market after lawmakers banned their sale at grocery stores and required manufacturers to adopt new labeling. In a strange twist on the new rule, the products characterized by some state legislators as especially attractive to teenagers are now no longer beholden to the 3.2 percent law imposed on alcohol sold at grocery stores and will be available in their production standard of 4 percent to 6 percent at state stores.
The commission also heard a preview of issues that likely will be addressed by the state Legislature this year — and a few of them seem destined to keep those sales figures climbing.
Chief on the list is a proposal by Utah Gov. Jon Huntsman Jr. to eliminate the private club rule (that requires a membership fee from every patron of a business whose primary purpose is serving drinks, also known as a bar). That discussion, according to executive director Dennis Kellen, is ongoing.
Other issues the DABC will be following are a call to remove the stamps affixed to every item liquor stores sell — reportedly necessary to prevent the "illegal importation" of alcohol into the state — modifications to the rules for homebrewers and stiffening the penalties for minors who try to finesse their way into a bar.
E-mail: araymond@desnews.com
