Sales Increase, Profits Sag at Municipal Liquor Stores

ST. PAUL (AP) — More sales at Minnesota municipal liquor stores don't mean more money for the cities that run them.

Stores pulled in a record $332.8 million in 2013, up 1 percent from 2012. But the $18.6 million those stores handed over to city coffers was down by 19 percent.

Those figures come from a State Auditor's report released Tuesday.

Paul Kaspszak, executive director of the Minnesota Municipal Beverage Association, attributes part of the decline to rising product and labor costs at the 237 municipal stores in Minnesota while liquor store prices have remained steady.

Shrinking profits at municipal liquor stores could play a role in the perennial legislative fight to legalize Sunday liquor sales. Municipal stores have argued legalization would increase their costs but not revenues.