January 10, 2008 in City

As Idaho grows, so do state’s liquor sales

Keith Ridler Associated Press
 

Markup

According to the Idaho Liquor Dispensary’s report, a $12.95 bottle of alcohol includes:

•$5.67 in markup and handling

•$4.88 for the cost of the product

•$2.14 federal alcohol tax

•26 cents for a Court Service Fund surcharge

BOISE – New Idaho residents who are bringing with them a taste for better liquor are behind a 90 percent increase in state income from liquor sales over the last five years, officials said Wednesday.

“It’s been incredible,” said Larry Maneely, deputy superintendent of the Idaho Liquor Dispensary. “To some extent it goes right along with the increase in Idaho’s population.”

The U.S. Census Bureau lists Idaho as the nation’s fourth-fastest growing state during the last three years.

In its recently released report for fiscal year 2007, which ended June 30, the dispensary listed its net income at $42.4 million, up from $22.3 million in 2003.

Maneely said the report shows that besides selling more booze, the state is getting more money because Idaho residents are buying more expensive distilled spirits, as shown by comparing dollar sales to bottle sales.

During the last five years, dollar sales of liquor in the state increased by 65 percent from $73.6 million to $121.6 million. In the same period, sales of bottles increased only 42 percent, from 6.4 million to 9.2 million.

“That’s an indication that people are trading up to premium products,” Maneely said.

The report projects total Idaho liquor sales will increase another 61 percent over the next five years to nearly $200 million.

The most expensive bottle of liquor sold in the last fiscal year – in fact, the most expensive item ever sold by the dispensary – was a $6,000 bottle of 50-year-old Macallan Single Malt Scotch Whiskey in December 2006 in the resort town of Ketchum, said Bill Applegate, product manager for the dispensary.

In the last year, the dispensary also sold two $1,596.95 bottles of Hennessy Richard Cognac, both in Coeur d’Alene.

The top selling product is Crown Royal Canadian Blended Whiskey, with more than 200,000 bottles sold at $25.95 each.

Idaho is one of 18 states, plus two counties in Maryland, that have direct sale of liquor. Idaho has 163 retail outlets in the state, 61 of them state liquor stores staffed by dispensary employees, and 102 contract outlets.

Maneely said the dispensary must balance its dual goals of making money for the state while following its mandate of “curtailing the intemperate use of alcohol.”

He said that is done by limiting the hours liquor stores are open, and by how much is charged for alcohol.

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