State Auditor Blaha to Release 2023 Municipal Liquor Store Report - April 2, 2025

Contact: Nadine Kottom-Dale | 612-391-7000

“Municipal liquor operations show 28 years of consecutive growth, even as the market evolves,” State Auditor Julie Blaha said.

SAINT PAUL, Minn. – On Wednesday, April 2 at 9 a.m. in Capitol Press Room B971, Auditor Blaha will present the 2023 Municipal Liquor Store Operations Report. A livestream of the press conference will be available on the OSA YouTube page.

In 2023, Minnesota's municipal liquor operations saw significant growth, with total net profits reaching $31.6 million, a 15.3% increase from 2022.

“Municipal liquor operations show 28 years of consecutive growth, even as the market evolves,” State Auditor Julie Blaha said. "We invited a city administrator to share the impact municipal liquor stores have on the community, along with industry experts to provide first-hand accounts of how cannabis sales are impacting business performance.”

Net profits generated from municipal liquor stores can be used to reduce property tax levies and purchase equipment, such as police cars, fire trucks or any other expenditures cities are authorized to make.

“The Sauk Rapids liquor store is a wonderful part of the services the city provides and is an important part of the downtown community. Our store has contributed over $1.2 million to our Capital Equipment fund over the past 10 years. These funds are primarily used to purchase police cars, fire trucks and plow trucks,” Sauk Rapids City Administrator Ross Olson said.

The annual report will be presented by Auditor Blaha, and she will be joined by members of the Office of the State Auditor (OSA) Government Information Division, Executive Director of Minnesota Municipal Beverage Association Paul Kaspszak, Sauk Rapids City Administrator Ross Olson and St. Anthony Village Liquor Operations Director Mike Larson.

"This report marks the onset of a shift in consumer preferences—beer and wine sales began to decline, while spirit sales remained steady. Meanwhile, THC beverage and edible sales were beginning to grow significantly, resulting in increased operational profitability,” Kaspszak said.

Larson echoed, “The rise of THC sales fundamentally reshaped our business. As customer purchasing habits began to evolve, we had to adapt to meet their changing demands.”

Highlights of the report:

• In 2023, the combined net profit of municipal liquor operations reached $31.6 million, a $4.2 million (15.3%) increase compared to 2022. Off-sale profits amounted to $26.9 million, up 13.9%, while on-sale profits totaled $4.7 million, rising 24%.
• Over the past five years, net profits grew by 13.3% overall, with off-sale operations up 10.2% and on-sale establishments rising 34.3%.
• In 2023, 31 cities reported net losses, one fewer than in 2022. Of these, 28 were in Greater Minnesota.
• Minnesota’s municipal liquor operations reported a 28th consecutive year of record sales at $437.4 million, with sales ranging from $123,730 in Elmore to $22.7 million in Lakeville.
• Operating expenses totaled $102.4 million, up $3.9 million (4%), over the amount reported in 2022.
• Although 18 of the 176 cities with municipal liquor stores are in the Metro Area, they account for 33.1% of total sales and 26.1% of net profits. Metro sales averaged $3.8 million, compared to average sales of $1.7 million for Greater Minnesota.
• Net transfers (transfers out minus transfers in) totaled $28.5 million, up 23.2% from 2022. Net transfers totaled $8.1 million among Metro Area establishments, compared to $20.4 million for Greater Minnesota establishments.
• Due to net losses in at least two of the past three years, 14 cities must hold public hearings, with 10 of them that were also required to hold hearings in 2023.

The full report is available on the OSA website.