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City Council Regular Meeting Minutes February 10, 2009 Page 4 Motion by Councilmember Gray, seconded by Councilmember Roth, to accept the 2009 Goals. Motion carried nnanirnonslyo B. St. Anthony Liquor Operations Annual Report. Mike Larson, Liquor Operations Manager, reporting. 8 Liquor Operations Manager Larson provided a PowerPoint presentation on the St. Anthony 9 Village Liquor Operations 2008 Annual Report, including the following information: 10 W Background 11 ® Mission Statement 12 M 2008 Summary of Sales 13 ® Breakdown of Sales 14 Sales by Category 15 w Gross Profit by Category 16 10 Year Net Profit History 17 2008 Activities 18 The Value of a Municipal Liquor Operation. 19 Awards 20 21 Liquor Operations Manager Larson stated the appreciation Liquor Operations staff has for the 22 working relationship with the other departments in the City. 23 24 Councilmember Gray inquired about the difference in average sales between 2007 and 2008. 25 Liquor Operations Manager Larson stated there was an increase of about $ 1.40 per sale between 26 2007 and 2008. Items like high priced wines slowed down in sales dramatically and moved 27 towards the lower priced wines. He stated the largest price increases he can remember came from 28 suppliers this year and came fast and furious throughout the year. 29 30 Councilmember Thuesen asked if there was a change in people purchasing less expensive beer 31 rather than specialty beers. Liquor Operations Manager Larson replied no; St. Anthony Liquor 32 Operations specializes in crafted micro, more expensive beers, and that selection fights off the 33 trend of buying less expensive beers. They have seen people go for better quality and reducing 34 the amount they are buying. He noted that three new liquor stores opened around the community 35 in 2008. About three to four months after the openings there was a drop in overall sales at the 36 Silver Lake Village Store. In regards to the increased sales in dollars he believes they are 37 capturing the market when it comes to larger volumes for the holidays. 38 39 Councilmember Roth inquired about plans to be the leader in wine sales for 2009. Liquor 40 Operations Manager Larson stated approximately 150 new wines have been brought in since the 41 middle of January with an emphasis on trying to be sensitive to the price points the customers 42 will want. 43 44 Mayor Faust commended Liquor Operations staff for the diligence in making sure that everyone 45 who purchases liquor is a bona fide legal buyer. He pointed out that this keeps the City and 46 residents safe and provides good revenue for the City. 4