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Michigan Liquor Control Commission Transfers $248 Million to the State's General Fund
Media Contact: LARA Communications 517-335-LARA (5272)
March 6, 2020 - The Michigan Liquor Control Commission (MLCC) announces a profit in liquor sales of $248 million that was transferred to the State’s General Fund for Fiscal Year 2019, which is up $17.2 million from last year, for appropriation by the Michigan Legislature to support a wide range of state programs.
“The Commission continues to provide a significant return on investment for the benefit of all Michigan citizens,” said MLCC Chair Pat Gagliardi. “The state’s billion dollar liquor business is built on consumer protection, competition and choice, and is robust and thriving.”
Over the last decade, the MLCC has transferred $1.9 billion to the State’s General Fund.
By law, the Commission is the sole wholesaler of all spirit products in the state -- purchasing these products from suppliers and selling them to retailers. The wholesaling operation involved the sale of more than 9.1 million cases of spirits, with gross sales topping $1.5 billion in the fiscal year ending September 30, 2019. Overall, total liquor sales increased 5.8 percent over the previous fiscal year.
All spirit products are marked up 65 percent on the price paid by the Commission. All licensees receive a 17 percent discount off this marked-up price. This net income from spirit operations in Fiscal Year 2019 of $248 million are preliminary figures until the Auditor General’s report is issued.
“The future looks strong as we currently have almost 10,900 liquor products available,” said Gagliardi. “We have the largest selection of liquor anywhere in the country – almost double what we offered just eight years ago.”
Suppliers request approval from the Commission to have products available for sale in Michigan by the Commission through designated Authorized Distribution Agents (ADAs). These ADAs, that have contracts with the various suppliers of spirits, are responsible for receiving and warehousing the merchandise shipped into the state and delivering products to retailers. Liquor licensees must place their spirit orders through the MLCC Online Liquor Ordering (OLO) system.
As the 10th largest state in population, Michigan ranks seventh nationally in the sale of distilled spirits.
It is the mission of the MLCC to make alcoholic beverages available for consumption while protecting the consumer and the general public through regulation of those involved in the importation, sale, consumption, distribution, and delivery of these alcohol beverage products.