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31 ST. ANTHONY LIQUOR OPERATIONS 2002 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 at the off-sale stores and a full time bartender. In addition to the full time staff, the off-sale stores have 15 part time clerks and the Stonehouse has 15 part time employees. Summary of Sales The City of St. Anthony's liquor operations experienced increased sales during 2002 when compared to 2001. Sales at store #1, located next to the Stonehouse, increased $20,000.00. Sales at store #2, located at Apache Plaza, increased $87,000.00. The Stonehouse experienced a $15,000.00 increase in sales. Overall, sales increased $122,000.00 for the liquor operation. • Total sales at off-sale store #1 were $2,056,600 • Total sales at off-sale store #2 were $2,241,900 • Total sales at the Stonehouse Bar& Grill were $786,200 We attribute this sales increase 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. • Increased micro/specialty beer selection. • Continued society trends toward entertaining at home or vacations. Recap of 2002 Activities and Events 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. The Stonehouse also hosted the St. Anthony Chamber of Commerce Golf Tournament dinner and awards ceremony. During 2002, the off-sale stores continued to expand on our wine selection. Imported wines experienced the highest growth in sales mostly due to the Australian wine craze. We also experienced an increase in attendance for our wine tastings. We increased our specialty beer selection with positive customer response. For that work, we were awarded "Best Beer Selection" in the annual "Reader's Choice Awards" held by the Lillie Suburban Newspaper. One of our off-sale store managers left our operation to manage the City of Rodgers liquor stores.That position was filled with one of our full,time lead liquor clerks. The lead liquor clerk position vacated by his hiring to store manager was left unfilled.