City of St. Anthony Village 3301 Silver Lake Road St. Anthony, Minnesota 55418 Liquor Stores ANNUAL REPORT This report is the City of St. Anthony Village’s Liquor Operations Report outlining the liquor activities of St. Anthony Village over the past year. The information herein also provides a history of sales 2 016 data, past events, identified trends, and new social applications being utilized. This report includes analysis over the past ten (10) calendar years.
Liquor Operations
ANNUAL REPORT 2016
Table of Contents
I. Liquor Operations ...... 1
II. Sales and Profits ...... 3
III. Trends ...... 7
IV. Events ...... 9
V. 2016 Accomplishments ...... 10
VI. Summary and Looking Ahead ...... 11
City of St. Anthony Village 3301 Silver Lake Road St. Anthony, MN 55418
2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
I. Liquor Operations
On February 10, 1948, St. Anthony Village City Council passed an ordinance to form a municipal liquor store operation. To this day, the profits from the liquor operations provide a much needed revenue source for our community. The November 27, 1947 edition of the Minneapolis Star newspaper reported that nine metro-area communities were operating municipal liquor stores with glowing results. Profits from these stores help to reduce the Property Tax Levy, provide funds for special projects, and provide funds for equipment purchases for the Police, Fire and Public Works Departments. Two months later, the Village of St. Anthony passed an ordinance to open their own municipal liquor store and the rest is history!
ORGANIZATIONAL STRUCTURE
Liquor Operations Manager
Mike Larson – Full Time
Asst. Operations Manager
Kevin Morelli – Full Time
Liquor Stores Manager
Bill Haugen – Full Time
Lead Stores Clerk
James Taylor – Full Time
21 Clerks - Part Time
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
MISSION STATEMENT Our goal is to actively prevent the sale of beverages that contain alcohol to minors and intoxicated persons, while simultaneously generating revenue for the community, in accordance with all City, State, and County liquor laws and ordinances.
VISION STATEMENT The St. Anthony Village Wine and Spirits brand is committed to providing a unique retail environment that is based on excellent customer service, product selection, competitive pricing, while providing safe, bright and clean stores that drive long term customer loyalty. STORE LOCATIONS St. Anthony Village owns and operates two municipal liquor stores:
Marketplace 2700 Highway 88 612-782-3451
Silver Lake Village 2602 38th Avenue NE 612-782-3452
COMPLIANCE CHECKS Each year the Police Department performs alcohol and tobacco compliance checks to ensure the safety of the liquor operations. In 2016, the Liquor Operations successfully passed all but one of the alcohol and tobacco compliance checks performed.
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
II. Sales and Profits
In 2016, the overall (unaudited) sales of the Liquor Operation were $5,875,919 with a profit of $268,354. This was a decrease of total sales by $78,939 or 1.3%, and a net profit increase of $16,425 when compared to 2015.
LIQUOR OPERATIONS SALES 2012-2016
5-Year Sales and Profit History 2012-2016
$7,250,000 $7,144,625 $6,972,599 $7,000,000
$6,750,000 5 Year Sales History $6,500,000 $6,250,000 $6,136,322 $6,000,000 $5,954,858 $5,750,000 $5,875,919
$5,500,000
2012 2013 2014 2015 2016
$600,000 $529,273 $503,494 $500,000 5 Year Profit History $400,000
$300,000 $262,943 $249,929 $266,354 $200,000
$100,000
$-
2012 2013 2014 2015 2016
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
10-Year Profit History
10 Year Profit History 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MARKETPLACE SILVER LAKE VILLAGE The Marketplace Store had a total The Silver Lake Village Store had a of $3,290,257 in sales in 2016. This total of $2,585,661 in sales in 2016. was an increase of $58,615 when This was a decrease of $137,555 compared to 2015. 142,225 total when compared to 2015. 123,431 sale transactions occurred at the total sale transactions occurred at Marketplace Store in 2016. The the Silver Lake Village Store in average amount of a transaction 2016. The average amount of a was $23.13. transaction was $20.95.
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
SALES AND GROSS PROFIT BY CATEGORY Beer was the top seller in 2016 with a total of $2,471,868 or 42% of sales. The second highest category was Spirits at $1,719,927 or 29% of sales. Wine represents the third highest category in sales at $1,518,966 or 26% of our total sales. All remaining categories such as mix and miscellaneous items represent $165,148 in sales or 3% of total sales.
Mix & Sales by Misc. Category $165,158 ●●● 3%
The adjacent chart shows the distribution of the 2016 $1,719,927 annual sales based upon the $1,518,966 Wine Spirits 29% four categories of: Wine, 26% Mix & Miscellaneous, Spirits, and Beer.
●●● Beer
$2,471,868 42%
●●●
The gross profit percentage by category shows the Mix Mix & Misc. Gross Profit and Miscellaneous with a 34% Percentage gross profit percentage at 34% Wine category is 30% and Spirits represent 23% gross profit percentage. 30% Spirits Gross profit of the beer Wine 23% category is 19%.While the Mix and Miscellaneous category has the highest gross profit percentage at Beer 34%; the category also has
the least amount of sales. 19% ●●●
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
●●● Mix & Percentage of Misc. Gross Profit The adjacent chart shows 4% what percentage of the total gross profit comes from each of the four sales 33% 29% categories: Wine, Mix & Wine Spirits
Miscellaneous, Spirits, and Beer.
●●● Beer
34%
Sales by Month 2012-2016
800,000 Monthly Sales 700,000
600,000
500,000
400,000
300,000
200,000
100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014 2015 2016
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
III. Trends While the percent of category sales remain the same (or similar) from years previous,
sales of products within a particular
category are changing.
SPIRITS
During 2016, the following spirits showed an increase over previous years as they relate to their percent of sales in the category: Straight and Canadian Whiskies
Irish Whiskey Tequila Brandy, Cordials and Gin percent of sales remained unchanged with Vodka being the best seller in the Spirits category. WINE
Wine sales of particular types increased in 2016 including: French and New Zealand wines Box wines Domestic Sparkling wine Box wines continue to be the largest seller in the wine category followed by bottled Cabernet, Blended Red wines, Chardonnay and Pinot Noir.
BEER
In 2016, the Micro/Craft beer sales in beer types continued to increase and are the largest seller in
the beer category at 49% of the total beer sales, which is a 3% increase over 2015.
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
MONTHLY SALES TRENDS 2012-2016
450,000.00 Market Place - Monthly Sales 400,000.00
350,000.00 2012 300,000.00 2013 2014 250,000.00 2015 200,000.00 2016
150,000.00
100,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
450,000.00 Silver Lake Village - Monthly Sales 400,000.00
350,000.00 2012 300,000.00 2013 2014 250,000.00 2015 200,000.00 2016
150,000.00
100,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
IV. Events
On Saturday March 19, 2016, we hosted our Spring Wine Event and hosted our Holiday Wine Event on November 19, 2016. Our events
were well attended and customers enjoyed sampling wines from all over the world as well as domestic wines.
During 2016, our Beer Events were spread out during the entire year. The samplings concentrated on particular micro/craft breweries on Fridays and Saturdays throughout the year. Our stores also host smaller samplings of Spirits, Wine and Beer in addition to the weekend events.
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
V. 2016 Accomplishments
In 2016, the Liquor Operations Department had many noteworthy accomplishments including: Completed Beverage Alcohol Server Training Awarded the Lillie Newspaper “Reader’s Choice Award” for “Best Beer Selection” and “Best Wine Selection” Hosted Spring and Holiday Wine Events Completed three physical inventory counts which resulted in .002% inventory shrinkage adjustment Completed Employee Right to Know Training Implemented new part time employee wage scale Installed new security monitoring software Performed safety inspections with an independent safety firm Attended combined product education training with Spring Lake Park and Fridley municipal liquor store employees Attended the Minnesota Municipal Beverage Association Conference Attended Minnesota Municipal Beverage Association Regional Meeting Attended Emergency Management Table Top exercise Attended Night to Unite Recycled 16 tons of cardboard Completed LED lighting project at the Marketplace location
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2016 Annual Report • Liquor Operations • St. Anthony Village, Minnesota
VI. Summary and Looking Ahead
LEGISLATIVE ISSUES Sunday Sales Wine in Grocery Stores
FACILITIES ASSESSMENT Assess the infrastructure of the buildings and the need for repairs or replacement items Assess maintenance needs
2016 IN REVIEW 2016 sales declined when compared to 2015 but that trend has slowed. Net profits climbed when compared to 2015 as we continue to increase profits within our sales capacity. We continue to recover and show positive gains from 2014 when our market experienced an increase in the number of liquor stores in the metro area. We expect that trend to continue as we believe our customers will realize the benefit of shopping our stores for competitive pricing, large selection, excellent customer service and the fact that our profits stay in the community. We are committed to our Mission and Vision Statements! 2017 is expected to see another increase of liquor stores in the metro area. Our staff is committed to maintaining a unique retail environment and researching opportunities to market our stores to drive long term customer loyalty. We will continue to work hard to gain back the “customers through the doors” by providing excellent customer service, product selection, competitive pricing while providing safe, bright and clean stores. Thank you for your support in 2016 and beyond! We look forward to serving our customers and residents where 100% of our profit enriches the community! Please contact me if we can assist you with anything that would provide a better shopping experience for you, your friends and neighbors. I can be contacted at [email protected] or call me at (612) 782-3455.
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