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Alcohol Revenues, Educational Efforts Increase
ABD Transfers $107 Million to State and Local Authorities
August 18, 2011
The Iowa Alcoholic Beverages Division (ABD) transferred a record $107 million dollars to state and local authorities during fiscal year 2011 as a result of increased spirit sales. The revenues are used to fund a variety of state and local programs.
The preliminary figures released today revealed that the revenues generated by the ABD in fiscal year 2011, which ended June 30, is $7 million more than fiscal year 2010 and $2 million more than the previous record, which was achieved in fiscal year 2009.
Million dollar sales days for the ABD used to only occur around holidays such as New Years and Independence Day. However, in fiscal year 2011, nearly fifty percent of ABD’s business days broke the million-dollar mark, with a single day even breaching two million dollars in sales. Total spirits sales were more than $220 million, $10 million over the previous year, and the highest since fiscal year 1988 when the state became the exclusive wholesaler of spirits.
ABD Administrator Stephen Larson said the agency focuses on serving its retail customers by providing a wider variety of products, while at the same time emphasizing education and responsible regulation has laid a foundation for success.
“ABD pays close attention to the products leading the market while evaluating results,” said Larson. “Fiscal year 2011 revealed consumers are gravitating to more convenient choices including flavored products of premixed, ready-to-drink cocktails.”
“But our success is also mirrored in our efforts to provide educational resources to our partners that increase regulatory compliance and social responsibility,” he said. “We balance our goal of generating revenue for the state with the desire to lead the effort to ensure laws and regulations are followed in addition to promoting the health and welfare of Iowans.”
The majority of funds generated by the ABD go the State’s General Fund to be appropriated by the legislature. Additional funds are used for city and county programs and a small percentage goes to the Iowa Partnership for Economic Progress (IPEP) for Iowa native wine and beer promotion. The remaining funds are earmarked for substance abuse funding.
“As we build on last year’s fiscal success, we must continue to utilize a business model that increases our operational efficiency to maximize the return on investment for the delivery of spirits,” Larson said.
“Additionally, we must continue to find creative ways to promote educational programs that will result in 100 percent compliance with the laws and regulations that are the framework for the ABD’s mission and the sale of alcohol to consumers.”
