Liquor Division Chief Helfert cites progress
Pub Date: 8/1/2008
By Shauna Helfert, Administrator
Liquor Control Division
Montana Department of Revenue
The Montana Department of Revenue s Liquor Control Division has made notable progress in its operations and sales in the last 12 months.
Working as a control jurisdiction, we have made significant improvements to our wholesale, customer service and educational outreach programs, while continuing to ensure that liquor is available to those adults who choose to drink responsibly.
Overall Sales
Fiscal Year 2008, which ended June 30, was a very successful sales period for us. Total sales showed an increase of approximately 7 percent over FY 2007, with our gross sales of product reaching $98.5 million. Our volume of sales also increased, up 4 percent (24,000 cases) from FY 2007.
Montanans benefit from liquor sales, with nearly $29 million in liquor revenues going into the state s general fund and local government coffers. Liquor revenues from product sales and taxes help to pay for important citizen services in the state.
Impressive sales growth like this doesn t just happen. It is a result of dedication and hard work by department employees, liquor store agents, liquor licensees and vendor representatives. We are pleased to be working together to make Montana a better place through alcohol control.
Spirit Sales
We re seeing steady growth in sales of distilled spirits. All class types showed an increase in sales. Vodkas, rums and tequilas showed the largest increases, at 7.5 percent, 4.7 percent and 3.5 percent respectively. Whiskey (3.3 percent) and gin (2.4 percent) also showed strong increases.
Innovative new products have helped contribute to these increases. Each year a new wave of products enter the market. This year s new products include Phillips UV Pink Lemonade Vodka, Smirnoff Blueberry Vodka, Stoli Blakberi Vodka, and Lucid Absinthe. All four have shown good sales since their introduction to Montana earlier this year.
It continues to be the trend of consumers to trade up to premium products. The average cost per bottle of liquor sold in Montana in FY 08 was $13.52. Red Lodge led the state with the average cost per bottle at $19.33.
Liquor Licensing
In FY 2008, we transferred 257 on-premise beverage licenses across the state and processed 79 new off-premise licenses, in addition to processing an increased number of restaurant beer and wine (RBW) licenses based on 2007 legislation.
To implement the new RBW licenses, we conducted 17 RBW license lotteries across the state last summer. We had 524 lottery entrants for 124 available licenses. The lottery process established the rank order of those entitled to submit an application for a license.
We sent out application packages to the initial successful entrants in August. Applicants had 30 days to either file an application or file a request for one-time 30 day extension.
We have received 79 complete RBW applications to date. Of those, 41 licenses have been issued and five applicants have been granted conditional license approval while awaiting completion of their proposed premises. The average length of time for these licenses to be processed and issued was 85 days.
For 12 of the 17 quota areas, every applicant who participated in the lottery had an opportunity to apply for a license. Some applicants withdrew from the process, while others failed to file applications within the 30 days.
We have exhausted the list of applicants for these 12 quota areas'; therefore, the remaining licenses are now available. The five quota areas that still have lottery applicants on a waiting list are Helena, Bozeman, Ennis, Missoula and Whitefish/Columbia Falls.
Of course, as those are generally growing areas, as their populations increase, more licenses will be issued.
Responsibility
With Montana liquor sales continuing to increase year after year, it is important that we help ensure consumers are using the products responsibly. The goals of our educational efforts are to promote the responsible use of alcohol beverages by adults, reduce the underage demand, and prevent underage access.
The continuous growth in new products is exciting because it provides increased choices for Montana s adult consumers. While the growth is exciting, it comes with some regulatory responsibilities for us.
We continue to review product labeling and packaging to limit products that, by their nature, appear to appeal to underage consumers or to blur the distinction between alcoholic and nonalcoholic products.
Our current educational efforts consist of a major revision of the Let s Control It responsible alcohol sales and service program that benefits the entire community.
The updated program provides sellers and servers with the tools they need to help their establishment comply with Montana law. The program covers refusal skills, effective server responses, techniques to evaluate a customer, identifying false identification, secondary sales and liability issues.
Striving for responsible service and sales of alcohol can only be accomplished through our many valued partnerships. We are grateful for your support and efforts to help us accomplish these goals.
Source: The Montana Tavern Times, August, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.