Store Information
About Municipal Liquor
Municipal liquor stores started after Prohibition as a means for cities to control the distribution of alcohol in their communities. Later, cities found that their municipal liquor store could be a method of generating needed non-tax revenue. Today, the purpose of municipal liquor stores is to “control the distribution of alcohol – while simultaneously generating income for the community.”
Off-sale municipal liquor operations have geographic exclusivity but not competitive exclusivity. This competition has caused municipal liquor operations to become more business savvy, with the goal of encouraging customers to “Give back to the community they live in” by purchasing at their municipal liquor operation, instead of somewhere else.
In 2020, 179 Minnesota cities operated 213 municipal liquor stores, with 86 cities operating both on‐sale and off‐sale liquor establishments and 93 cities restricting their municipally owned establishments to off‐sale liquor stores. Individual operation sales range from approximately $103,000 to over $18 million per year. Total annual sales are approximately $410 million with total net profits of approximately $32.9 million. Profits are used by cities for general fund activities or special projects including parks and recreation programs, public safety equipment, Fire and Police vehicles, street maintenance equipment and vehicles, etc. In 2020, Minnesota’s municipal liquor stores transferred a total of $21.3 million into city general funds.
“Controlling the sale of alcohol” is different from “responsible service.” Of course, all alcohol retailers should serve responsibly, making sure they are not selling to underage or intoxicated individuals. Controlling the sale of alcohol means reflecting a Safe, Positive, and Collaborative community attitude.
This is the heart & soul of municipally owned liquor operations.