State Reports Liquor Sales Increase, Large Profit Margin

Ohio Department of Commerce Director Kimberly A. Zurz and Acting Superintendent of Liquor Control Ernie Davis say that spirituous liquor dollar sales by the state’s 453 contract liquor agencies reached a record high of $742.7 million in Fiscal Year 2010. In addition to overall sales, the profit margin for the state also increased.

This was an increase of $12.8 million (or 1.75%) over sales in Fiscal Year 2009. In addition, the Division’s net profit rose to $228.8 million, an increase of $4.6 million over Fiscal Year 2009. The Division’s profit margin also increased in Fiscal Year 2010 to 30.2 %. Spirituous liquor is defined as intoxicating liquor containing more than 21 percent alcohol by volume.

The Division’s General Refund Fund (GRF) transfer for Fiscal Year 2010 was $167 million, an increase of $4 million over last year’s transfer.

In addition to the GRF transfer, the Division contributed another $143.5 million in liquor sales and tax revenue to help fund a variety of state services. The Division’s total contribution for Fiscal Year 2010 was $310.5 million.

“During the past fiscal year, the Division of Liquor Control managed operations with increased efficiency. Greater net profit and a larger profit margin helped the Division contribute vital revenue to the state,” said Kimberly Zurz.

Liquor sales revenue was earmarked and distributed as follows:

    * $167 million transferred to Ohio’s General Revenue Fund;
    * $35.9 million to the Ohio Department of Development for the retirement of economic development bonds used to fund the state’s small business loan program;
    * $14.9 million to the Ohio Department of Development for the retirement of Clean Ohio Revitalization Bonds;
    * $10 million to the Ohio Department of Public Safety for state liquor law enforcement;
    * $4.2 million to the Ohio Department of Alcohol and Drug Addiction Services (ODADAS) to fund alcoholism treatment, education and prevention programs statewide;
    * $1 million  to the Ohio Department of Health to fund the Alcohol Testing Program;
    * $736,206 to the Ohio Liquor Control Commission to funds its operations;
    * $36.6 million in state gallonage tax deposited in the state treasury;
    * $35.1 million in state sales tax deposited in the state treasury;
    * $5.1 million in additional gallonage taxes in Cuyahoga County for the Gateway Stadium Project.

Total gallons of spirituous liquor sold in fiscal year 2010 was 10.8 million gallons, an increase of 217,002 gallons (or 2.04 %) compared to fiscal year 2009.