Liquor Commission reports $744 million in FY2024 sales; transfers to general fund remain primary revenue source

The New Hampshire Liquor Commission presented its FY2024 financials and retail operations to the House Ways and Means committee, reporting $744 million in sales and outlining how statutory transfers direct most net revenue to the general fund and two earmarked health funds.

Chair Joseph Molica and CFO Tina Demers summarized the agency’s role as a controlled‑jurisdiction wholesaler and retailer and said the commission is self‑funded (no general‑fund appropriation for operations). The commission reported that gross profit margins over the last decade have been relatively consistent (about 28–29%) but net profit margins fell to about 17% in FY2024 following a 10% pay raise for staff, part‑time rate increases and one‑time costs tied to a new enterprise retail system (cloud‑based replacement of a 40‑year old system).

Demers presented FY2024 mixes: retail customers accounted for about 71.5% of sales; spirits were roughly 49% and wine about 22% of total sales. She said approximately 50% of outlet customers were out‑of‑state shoppers (noting 25% were from Massachusetts, 10% Maine, 8% Vermont, 2% Canada). The commission operates roughly 65 outlets (9 state‑owned, the rest leased) and has invested in store relocations and renovations; the top 15 outlets account for about 49% of revenue.

The commission explained statutory transfers: RSA 176:15 requires a transfer (Alcohol Abuse Prevention and Treatment Fund) equal to 5% of prior‑year gross profit (that rate grew from 1.7% in FY2016 to 5% today); another statutory transfer supports the Granite Advantage Healthcare Program with amounts determined by DHHS for nonfederal match purposes. The commission reported FY2024 transfers to the general fund totaled about $109.6 million (plus beer tax receipts of about $12.5 million). Projections in the commission’s summary show transfers to the general fund of roughly $102–103 million in FY2026–27 under current assumptions.

Chairman Molica discussed competitive pressures from large multistate retailers (citing Total Wine expansion in nearby states), global and national alcohol market trends (a small decline nationally in 2023, shifts in consumption patterns), and the increasing presence of cannabis retail in neighboring states—factors he said affect sales mix and customer behavior.

The commission highlighted e‑commerce and curbside pickup: curbside sales generated about $3.2 million in FY2024 and have totaled about $12.2 million since the curbside program began in 2020; the website gets roughly 25,000 visits per month. Social media and targeted email campaigns were presented as customer outreach tools.

Committee members asked about age verification for curbside pickup (commissioners confirmed curbside staff check IDs and verify payment when releasing purchases) and how the commission monitors outlet profitability (each store has a profit‑and‑loss assessment used when evaluating relocations or renovations). Members also raised questions about tariff impacts on imported products and the interplay between alcohol and cannabis markets; commissioners said product sourcing, market shifts and potential tariff changes are monitored but did not assert firm revenue impacts.

The commission said it will advance an Interstate I‑95 north/south revitalization RFP and related master development items to Governor and Council and will follow up with requested details on store‑level data and further financial clarifications.