Liquor Sales Up, Vendor's Overall Sales Down
Millions of unexpected dollars have been earned for the State of Ohio so far in 2009.
The Ohio Department of Commerce reported on Wednesday that the divisions profit margin was up 30.1 percent over 2008.
The report comes from data across all 442 contract liquor agencies that reached a record high of $729.9 million. The net profit was $224.2 million.
The money was distributed to the following:
$163 million Ohio's General Fund
$30.4 million Ohio Department of Development to retire economic development bonds.
$14.9 million Ohio Department of Development to retire Clean Ohio Revitalization Bonds.
$9.9 million Ohio Department of Alcohol and Drug Addiction Services
$4.1 million Ohio Department of Alcohol and Drug Addiction Services
$1.2 million Ohio Department of Health to fund Alcohol Testing Program
$713,505 Ohio Liquor Control Commission
$35.8 million gallonage tax deposited in the State Treasury
$33.7 million sales tax deposed in State Treasury
$5.1 million gallonage taxes in Cuyahoga County for the Gateway Stadium Project.
The additional revenues for the state does not mean additional money for the vendor.
Betsy Schroder, of Fine Wine Inc. in Anderson Township, explained, "The state is the one reaping the benefits. Granted our commission checks are somewhat larger, but [my] commission being as small as it is, doesn't make up for the recession hit other areas of the retail business."
Schroder typically makes her living on wines and gift baskets sold along with the liquor. But she found, people are buying less expensive liquor instead of the more expensive wines. That means less overall cash flow for her business.
"People are looking for more bang for their buck,” she said. “A lot of wine drinkers are picking up a bottle of tequila instead of wine."
But do not misunderstand her, every little bit of money helps.
"I look forward to getting my commission check every two weeks," said Schroder.