State alcohol report: Imbibing in Utah grows with population

State alcohol report: Imbibing in Utah grows with population

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SALT LAKE CITY — Utahns sipped a little more wine this year than last. And downed more spirits and heavy beer and flavored malt beverages, too.

In all, residents consumed 7.8 million gallons of alcohol sold through the Utah Department of Alcoholic Beverage Control in the fiscal year that ended June 30, according to agency's annual report released Tuesday.

Of course, there were about 400,000 more people in the state this year based on population estimates DABC used to calculate yearly imbibing.

Average alcohol consumption per person went up slightly to about 2.6 gallons.

Increased sales also means more money for state coffers. Net profit jumped about $6 million to $87.8 million in 2014, all of which goes to the state's general fund. Utah's school lunch program also siphons a large amount from annual liquor sales, $38.3 million this year.

Utah is among 17 liquor-control states and has some of tightest restrictions in the nation.

Also, Tuesday the state auditor's office presented its biannual audit of DABC to the state liquor commission.

Although staff auditor Rachel Dyer told commissioners the review uncovered no "major concerns," it showed the agency isn't using its inventory control system properly. The audit also showed low morale and high turnover rates among part-time clerks in the state's 44 retail stores.

The department's goal is for stores to sell or turn over the products on their shelves once a month. Only a third of the stores did that in fiscal 2014. The outlet on 400 South in Salt Lake City turned over its bottles nearly twice in a month, while the Hurricane store in southern Utah only sold out a quarter of its products.

Utah Alcohol Consumption 2010-2014
2014 — 7.8 million gallons (population 2.94 million)

2013 — 7.5 million gallons (population 2.9 million)

2012 — 7.2 million gallons (population 2.85 million)

2011 — 6.8 million gallons (population 2.81 million)

Source: Utah Department of Alcoholic Beverage Control

Auditors suggested DABC may improve the rates with more frequent shipments of high‐demand products or reducing the inventory of those in low demand.

Commission Chairman David Gladwell said the goal doesn't go against DABC's charge to make alcohol available for those who want it while not promoting drinking.

"If we want to turn over product, we need to meet the demands of the public," he said after the meeting. He said it's more a matter of using the agency's resources well. Stores don't want to stock items that don't sell.

"It's really an inventory control issue," Gladwell said.

The audit found that part-time store clerks, who make $8.60 an hour, cited low pay as a reason for being dissatisfied in their jobs. Because only 20 percent of the clerk jobs are full time, part-timers have little opportunity to move up.

Commissioner Olivia Agraz said clerks are "grossly underpaid."

Gladwell said DABC puts a lot of money into training workers because "selling liquor is not like selling licorice," and the department would like to pay more, but can't because all the revenue goes to the state.

DABC was in crisis mode a couple of years ago after an audit for gross mismanagement. But Gladwell, an attorney who has served on the commission since July 2011, said he gets the sense the agency is running smoothly.

"We have an internal audit department now so we're digging into the corners. We've never done that before," he said.

State audits also help, he said, adding the current DABC administration is sensitive to what happened in the past and is trying to use best practices to run the agency.

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Dennis Romboy

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