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2® ST. ANTHONY LIQUOR OPERATIONS 2001 Annual Report Background The City of St. Anthony owns and operates two off-sale liquor stores and one on-sale bar and restaurant. The operation has a full time operations manager, a store manager at each off-sale store and a bar/restaurant manager. We also employ a full time lead liquor clerk for each off-sale operation, a full time bookkeeper and a full time bartender. In addition to the full time staff, the off-sale stores have 20 part time clerks and the Stonehouse has 20 part time employees. Summary of Sales The City of St. Anthony's liquor operations experienced increased sales during 2001 when compared to 2000. Sales at store #1, located next to the Stonehouse, increased $67,000.00. Sales at store #2, located at Apache Plaza, increased $156,000.00. The Stonehouse experienced a$3,000.00 decrease in sales. Overall, sales increased $220,000.00 for the liquor operation. We attribute this sales summary to many factors. Some of these factors include, but are not limited to the following: • Aggressive promotion plan for the off-sale stores. • Increased wine selection and wine tastings. • Additional full time lead clerk to assist with customer service. • Continued society trends toward the reluctance to drink and drive have contributed to slightly fewer sales at the Stonehouse Bar& Grill. Recap of 2001 Activities We continued with our annual promotions such as the Villagefest"Kick-off party in the parking lot", The Stonehouse golf tournament and "Pig Skin Pick's"contest where customers at the Stonehouse can pick the winners of each week in the NFL. In addition, off-sale store#2 held a Bratwurst cookout hosted by Jim Beam Brands and 1919 Rootbeer. During 2001, the off-sale stores continued to expand on our fine wine selection. These wines represent a higher quality and price point that the wines that we have stocked in the past. Customer response was positive. We experienced an increase in attendance for our wine tastings. Not only did our wine sales increase but we were also awarded "Best Wine Selection" in the annual "Reader's Choice Awards" held by the Lillie Suburban Newspaper. An additional full time Lead Liquor Clerk position was added to the off-sale operation during the year 2001. The Lead liquor Clerk position was added to assist us with an additional supervisory position and provide a higher level of customer service.