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1 <br />Liquor Operations Manager Mike Larson provided a power point presentation for the Council for 2 <br />the Liquor Operations Annual Report. Mr. Larson reviewed there are two convenient locations. 3 <br />The Mission Statement and Vision Statement were provided. Mr. Larson noted a more detailed 4 <br />report can be found on the City’s Website. There are five full time employees including Mr. 5 <br />Larson. The value of municipal liquor operations and the value of St. Anthony Village Wine and 6 <br />Spirits. The trends during 2020 included: 7 <br />• Sales increase of 13.8% - Closing or reduced hours of bars and restaurants. 8 <br />• Net Profit Increase of 57.6% - Pandemic buying, large quantities and higher quality/price 9 <br />items. 10 <br />• Salaries/Wages/Benefits Increase of 2.6% - Increased sales and profits within our current 11 <br />capacity. 12 <br />• Total Operating Expense Increase of 9% - Costs associated with pandemic safety 13 <br />measures. 14 <br /> 15 <br />Mr. Larson provided a Sales and Profit Comparison 2020 to 2019 and a 2020 Sales Comparison 16 <br />5-Year Monthly Sales History – Combined Stores. Five-year Profit History and 10-year Profit 17 <br />History were provided. 18 <br /> 19 <br />Mr. Larson reviewed Benchmarks and Comparisons including: 20 <br />• Inventory Turn Ratio = 5.6 times. 21 <br />• Inventory Value = 13.7% 22 <br />• Labor Costs = 12% of total sales. 23 <br />• Operating Expense = 18% of total sales 24 <br />• Physical Inventory Adjustments = ($4,959) 25 <br /> 26 <br />According to the 2019 State Auditors Report the St. Anthony Village Liquor Operations ranked 27 <br />17th in the State in Total Sales and 12th in net profits of 18 metro operations. 28 <br /> 29 <br />Mr. Larson reviewed where the Liquor Operations were pre-Covid 19 compared to where the 30 <br />Liquor Operations are now. Looking ahead in 2021 the plan is to add curbside customer order 31 <br />pick-up option, customer delivery option, resume sampling events, collaboration products with 32 <br />local distilleries and breweries, evaluate future store hours, monitor latest technology to provide 33 <br />staff and customer safety measures, reinvestment in the infrastructure and liquor store staff Goal 34 <br />Setting and Strategic Planning session. 35 <br /> 36 <br />The website SAVMN.COM includes event calendar, monthly specials, news and updates, 37 <br />product requests, store hours and contact information. “Notify Me”, email and text alerts are 38 <br />available. Information is also available on Facebook and shortly will be available on Instagram. 39 <br /> 40 <br />Mr. Larson thanked the staff for their hard work throughout 2020. He also thanked the customers 41 <br />for their support in 2020. 42 <br /> 43 <br />Councilmember Walker asked about the ten-year profit history years 2011, 2012 and 2013 are 44 <br />relatively in the same ball park. Business picked up in 2020. Councilmember Walker asked if 45 <br />there is a reason for the higher profit in 2011, 2012, 2013. Mr. Larson stated in 2014 a big box 46 <br />2