![]() ![]() ![]() The state currently has one warehouse based in Salt Lake City to process, store, and deliver 6,000 spirits, wine, and beer products to 50 retail stores statewide. From 2010-2020, Utah had the fastest growing population rate nationwide at 18.4% to 3.27 million people, according to the United States Census. Steady increases in sales have intensified these challenges. Clason spearheaded the department’s first-ever multi-year strategic plan to deal with major challenges, including employee retention, inventory and warehouse management, and technological infrastructure. Since being appointed executive director of DABS in January 2021, Clason has taken significant steps to modernize the organization and improve customer service. “On-premise businesses are showing signs of increased sales in 2022 compared to those in 2021,” Clason says. Under pressure from pandemic-related regulations, the on-premise accounted for 11%, or $55.27 million, of Utah’s beverage alcohol sales in fiscal 2021, although the situation is improving. The remaining sales are from distilleries, wineries, and breweries with licenses to sell products for off-premise consumption. Of total state beverage alcohol revenue in fiscal 2021, spirits made up 56% of sales and wine tallied 34%, while beer with an abv of 5% or higher comprised 5%, and flavored malt beverages equaled 1%. Overall, Utahans who drink beverage alcohol skew heavily toward spirits and wine consumption. ![]() Bartenders must use the Berg All-Bottle 704 liquor control system to measure 1.5 ounces of a cocktail’s primary spirits into each drink. There is no online shopping, curbside pickup, cocktails or wine to-go from the on-premise, and no Sunday sales at state stores. Utah’s beverage alcohol rules are strict compared to other control states. These developments are unfolding in a state where an estimated 55% of citizens are Mormons who abstain from alcohol consumption. Nevertheless, from fiscal 2017 through fiscal 2021, the alcohol industry’s annual compound growth rate was 4.8%. Revenue lost in Utah because of pandemic-related liquor store closures tallied $4.5 million in fiscal 2021, according to DABS. Spirits volume in calendar 2021 increased 2.3% to 1.63 million 9-liter cases, according to the National Alcohol Beverage Control Association (NABCA) and Impact Databank. The average cost per bottle sold at state stores increased 11.3%, as closures of bars and restaurants contributed to consumers spending more at retail. Our vendors are still facing glass, can, and truck driver shortages, among other obstacles, but trends seem to be improving.” Before the pandemic, in-stock was consistently above 97%. ![]() “Last year at this time, our in-stock percentage was 92% now we are trending more than 95%. “Supply chains are showing signs of improvement,” says DABS executive director Tiffany Clason. Despite pandemic-related store closures, as well as product and staff shortages, beverage alcohol revenue in Utah increased 3.4% to $517.39 million during fiscal 2021, according to DABS. The Utah Department of Alcoholic Beverage Services (DABS) continues strategizing to overcome significant challenges in a state where less than 45% of the adult population drinks. Though Utah’s beverage alcohol rules are stricter than in many other control states-including not allowing online shopping or curbside pick-up-sales at the state’s stores (Taylorsville, Utah interior pictured) grew 3.4% in 2021 to $517 million. The Beehive State’s alcohol revenue continues to grow as state officials modernize to keep pace. ![]()
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