Audit released shows breakdown of area municipal liquor stores

The Minnesota Auditor’s Office has released its annual report on city-owned liquor stores.

Here’s the good, the bad and the ugly from audit reports over the last four years:

In a nutshell, last year was the best year for the city-owned liquor store in Detroit Lakes since 2011.

Last year was a terrible year for Vergas and Frazee. The Vergas store has seen a steady decline in profits over the past four years.

The Audubon liquor store loses money every year, but it lost less money last year than it did the year before.

City liquor stores remain a reliable funding source for Ogema, Callaway and Wolf Lake.

The Lake Park store always makes money, but not a lot of it.

Detroit Lakes is smiling

The Detroit Lakes store had net sales of just over $790,000 last year, a profit margin of 13.6 percent.

That allowed the city to transfer $545,000 to the general fund.

In 2013, the first full year of operation for the new Detroit Lakes city liquor store, it brought in just $524,000, with a profit margin of 9.7 percent.

In 2012, the DL store brought in $662,000, a 13.5 percent profit margin.

In 2011, the store brought in nearly $888,000, a 17.1 percent profit margin.

Until a few years ago, there was no competition for city-owned liquor stores in the area.

Lakes Corner Liquor, a privately-owned liquor store, opened in the four corners area of Highway 34 in 2010. 

Seven Sisters followed suit: It opened on Highway 59 near Lake Melissa in 2012.

Frazee loses money

The Frazee liquor store lost nearly $25,000 last year. That’s unusual for Frazee: The previous year it made about $11,500, a 1.8 percent profit margin.

In 2012, the Frazee store made $37,994, a 5.9 percent profit margin.

In 2011, the Frazee store made $23,600, a 3.6 percent profit margin.

Bad news for Vergas

The city-owned liquor store in Vergas has been on a steady downward trend. It lost more than $25,000 last year,

In 2011, the Vergas store made nearly $41,000, a 6.9 percent profit margin.

In 2012 the Vergas store made nearly $25,000, a 4.8 percent profit margin.

In 2013, it made about $8,500, a 1.8 percent profit margin.

Its loss this year was the sixth highest in the state. (Frazee’s was the seventh highest).

In spite of the loss, Vergas transferred $25,000 from its liquor fund to its general fund.

Audubon bleeds cash

The Audubon liquor store lost $14,300 this year.

That compares to $24,600 lost the previous year.

In 2012, Audubon lost $5,000 on its liquor store, and in 2011 it lost $3,900.

In spite of the loss, Audubon transferred $500 from its liquor fund to its general fund last year.

Ogema stays on top

The Ogema liquor store is a cash cow for the city, and it had another good year, making about $55,000 last year, a 15 percent profit margin that is very unusual for an on-and-off sale establishment in outstate Minnesota.

The previous year, Ogema made about $62,000 on its liquor sales, with a profit margin of 17.4 percent.

In 2012, Ogema made nearly $27,000 on its liquor sales, with an 8.2 percent profit margin.

In 2011, the Ogema store made nearly $29,000, an 8.9 percent profit margin.

Callaway recovers

After a stumble in 2013, the Callaway Liquor Store continues to provide reliable revenue to the city of about 200: it made more than $26,000 last year, a profit margin of 5.4 percent.

It transferred $20,000 to its general fund.

The previous year it made just $8,600, a profit margin of just 1.8 percent.

In 2012, the Callaway store made more than $40,000, a 7.6 profit margin.

In 2011, Callaway also made more than $40,000 from its liquor sales, with a profit margin of 7.7 percent.

Steady in Lake Park

Lake Park also recovered from a bad year in 2013: It made more than $18,000 last year, a profit margin of 2.7 percent.

In 2013, the Lake Park store made about $10,700, a profit margin of just 1.6 percent.

In 2012, the lake Park store made more than $24,000, a 3.7 percent profit margin.

And in 2011, Lake Park made more than $17,000, a profit margin of 2.7 percent.

Cash for tiny Wolf Lake

The Wolf Lake Liquor Store made more than $22,000 last year, a 6.5 percent profit margin.

Wolf Lake, population 58, transferred $14,000 to its general fund last year.

In 2013, the Wolf Lake store made almost $15,000, a 3.9 percent profit margin,

In 2012, Wolf Lake liquor sales generated more than $28,000, a 6.7 percent profit margin.

In 2011, the liquor store made just over $19,000, a profit margin of 4.7 percent.

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