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Municipal Liquor Stores

  • As of 2022, Minnesota's approximately 211 municipal beverage facilities control the distribution of alcohol in their communities while simultaneously generating $432.2 million in sales and contributing over $22.9 million in net profits to various city funds.
  • Isanti Liquor sends $350,000 in net-profits to the City of Isanti every year.  This helps to increase the quality of life for all residents without increasing taxes.
  • Municipal liquor stores started after Prohibition as a means for cities to control the distribution of alcohol in their communities. Later, cities found their municipal liquor store could be a method of generating needed non-tax revenue. Today, the purpose of municipal liquor stores is to "control the distribution of alcohol - while simultaneously generating income for the community."
  • Off-sale municipal liquor operations have geographic exclusivity but not competitive exclusivity. This competition has caused municipal liquor operations to become more business savvy - with the goal of encouraging customers to purchase at the municipal liquor operation, instead of somewhere else.
  • There are 176 cities with off-sale or on-sale / off-sale combination municipal liquor operations, operating approximately 211 facilities. Municipal liquor operations sales range from approximately $100,000 to over $21.9 million per year, depending on the size of the city and location. Total sales statewide are approximately $250 million, with total annual profits of approximately $23 million. 
  • Total annual profits of approximately $23 million are used by individual cities for general fund activities or special projects including recreation programs, transportation programs, public safety equipment, public safety programs, and much more. 
  • The strong trend in large cities and small towns is to remodel and / or expand existing facilities and build new facilities.
  • Municipal liquor operations can advertise, promote, price etc. like independently owned operators. However, because of the "alcohol control" element, municipal liquor operators may choose not to engage in certain, otherwise legal, activities.