Maine liquor sales exceed expectations
Higher-than-expected liquor sales in Maine during the first year under a new state contract will provide taxpayers with a $46 million operating profit, the Portland Press Herald reported Thursday, citing the Maine Bureau of Alcoholic Beverages and Lottery Operations.
Most of the money will be used to repay bond debt service, according to the newspaper.
The profit stems from $155.5 million in liquor sales in the state during the 2015 fiscal year, a 4.6% increase over the year before.
The 2015 fiscal year, which ended June 30, was the first year the marketing, distribution and warehousing of the state’s liquor business was operated by Pine State Trading Co.
The Press Herald reported that some of the $46 million will be used for debt service payments on a $220 million revenue bond issued in 2013, which Gov. Paul LePage’s administration used to repay $183.5 million in outstanding debt to Maine hospitals. The rest will go to state programs, including the Department of Environmental Protection’s Clean Water State Revolving Fund, the Department of Health and Human Services’ Drinking Water State Revolving Fund, the state’s General Fund and the Department of Transportation.
Gena Canning, managing partner at Pine Street Trading, is among the Mainebiz 2015 Women to Watch.
The Pine State Trading, based in Gardiner, was founded in 1941 and has eight distribution depots throughout all six New England states plus part of upstate New York. Its headquarters and central distribution site in Gardiner is 260,000 square feet. Pine State's tractor trailers and other trucks are on the road around-the-clock, stocking stores with fresh food, beer, wine, soft drinks, coffee, tobacco, candy and snacks as well as vending services.
Pine State Trading serves 3,500 to 4,000 convenience store locations; while many are chains, about 45% are single-store operations. Pine State Beverage, which occupies 166,000 square feet in Gardiner's Libby Hill Business Park, serves a range of customers. Overall, the company has 1,050 employees, including 700 in Maine.
In 2014, the company won the new 10-year state liquor contract to provide administration, warehousing and trade marketing for the Maine spirits business. For the previous 10 years the contract had been held by Maine Beverage Co.
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