Alcohol milestone ... or millstone?

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Iowa's most successful division of government just reached a milestone. Revenue from the Iowa Alcoholic Beverages Division topped $100 million for the first time this year.

Hurrah?

Hardly.

This money is generated by state employees who decided which brands will be sold to which bars and stores and at what prices. State employees coordinate promotion schedules, warehouse the liquor and even drive it to the retailers.

The jump in revenue comes largely because these state employees are pushing hard liquor, which has a higher profit margin than beer.

"Iowa is historically a beer-drinking state, and any movement away from that is a golden opportunity for the spirits industry," Division Administrator Lynn Walding told the Des Moines Register.

That "golden opportunity" allowed this state government department to squeeze an 8.2 percent jump in sales revenue out a 6.2 percent increase in sales volume. Hard liquor revenue alone jumped 29.1 percent over last year according to division statistics.

The $100 million milestone also was achieved when these state employees decided to fork over a bigger share of profits to the general fund instead of saving them for upcoming capital purchases.

Debate rages nationally about government infringement into the lending, automobile and other businesses. Meanwhile, the state of Iowa holds a monopoly in an industry that most states simply regulate, not run.

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