Municipal liquor sales set record as profits rise in rural Minnesota

Dec. 17—Minnesota's municipal liquor operations reported a 26th consecutive year of record sales in 2021, and stores in the region mostly followed that robust trend.

Sales totaled $423.5 million across the state, up 3.2% from 2020, according to a municipal liquor store report released this week by the state auditor.

Blue Earth, an off-sale establishment, led this region, making $146,626 in net profit.

Meanwhile, Lonsdale, also an off-sale establishment, brought in $131,367 in net profit and Le Center, an on- and off-sale business, made $126,275.

In Cleveland, an on- and off-sale establishment that brought in $37,369 in net profit, lead bartender Julie O'Malley said it was a good year, with many customers eager to get back to in-person activities.

"Our sales have been good. We've been having a good year. We have a lot of new customers from different towns visiting. We've done some upgrades here and that's helped. We have our regular customers. Everybody's great. We're doing good," she said.

The combined net profit of all munis totaled $36.5 million in 2021, a 1.3% increase from 2020.

On-sale operations were up in 2021 with net profits totaling $6.4 million, up 105%.

However, net profits for off-sale operations saw an 8.5% decrease from 2020, totaling $30.1 million.

Statewide, 13 Minnesota cities reported net losses for 2021, 24 fewer than 2020. Twelve of the 13 cities with losses are in Greater Minnesota, the report said.

State law requires cities whose liquor operations show a net loss in at least two of the past three years hold a public hearing to determine whether to continue liquor operations.

Cities in the region required to hold public hearings include Hanska, Butterfield and Kiester, all three of which also showed net losses in 2021.

The full report can be found here.

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