Despite bad economy, Utah liquor sales up

The light of Utah liquor sales continues to burn brightly amid the gloomy economic skies hanging over the state with profits up and expansion plans in the offing.

While most state revenue streams continue to decline — by some projections tracking to be short of last year's take by $1 billion — sales at state-operated liquor outlets are bucking the trend, up over 5 percent in volume and 4.6 percent in revenues.

At the Utah Department of Alcoholic Beverage Control's monthly meeting Wednesday, deputy director of finance Leonard Langford reported that the volume of liquor sold so far this year was up 1.6 million cases, and profits were outpacing the previous year by $8 million.

The agency, which operates on a fiscal year that runs from July to June, is reporting $40 million in profits thus far in 2008-09.

DABC spokeswoman Sharon Mackay said construction plans for seven new stores are also in the works. They include outlets in Pleasant Grove, Springville, Heber City and Hurricane — towns previously without state liquor outlets, and new, bigger stores in Bountiful, Cedar City and Holladay. The additions will bring the total number of retail stores in operation to 44, and will create 32 new employment positions to staff the expansion.

Volume and revenue increases in the state's liquor franchise are also performing well ahead of national trends, according to figures published by the Distilled Spirits Council of the U.S., a national trade group.

Among the 18 states that have state-controlled retail liquor sales, Utah ranks fifth for volume increases in 2008 over 2007, with a 3.1 percent increase. And, in terms of sales, the Beehive State far outstripped the average 2.8 percent revenue growth for the nation, with an 11.7 percent jump in sales in 2008 over 2007.

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