Edina Municipal Liquor Stores Among Most Profitable in Minnesota

Edina's three municipal liquor stores are among the most profitable in the entire state, according to figures released earlier this month by the Minnesota Auditor's Office.

Edina Liquor stores pulled in a net income of $1.445 million in fiscal year 2011, putting it atop the heap of Minnesota's municipal liquor operations. Roughly $1.255 million of those profits were then transferred out of the operation to other city funds.

Edina's stores brought in $3.524 million in gross profit in 2011, which was second only to Lakeville's $3.546 million in gross profit. Still, Edina's slightly lower operating costs meant it was the most successful operation in the state in terms of net income.

Total sales at Edina Liquor were approximately $13.172 million in 2011, according to the auditor's report.

Across the state, municipal liquor operations totaled $23.4 million in net profit during that same period. That figure represents a $1.7 million increase over the amount generated in 2010.

Sales continue to grow for the three Edina stores, according to a recent report from City Manager Scott Neal to the City Council. Neal reports liquor sales are up by $419,699 for the first quarter of 2013, representing a "significant increase over 2012" when the Southdale store underwent a remodel.

"When compared to first quarter 2011 (when all three stores were open), sales are ahead $182,025 and customer counts have risen from 111,436 to 113,628," Neal wrote. 

The state auditor's report noted metro area municipal liquor operations are "considerably larger and more profitable than their Greater Minnesota counterparts." Though only 19 of the 208 Minnesota cities that own and operate municipal liquor sales are located in the metro, they represent a staggering 36.6 percent of net profits for municipal liquor operations.

On the average, metro area establishments were close to $3 million, while operations outside of the metro area averaged sales of $988,189.

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