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Tallgrass Liquor posts modest sales gain in 2024; THC sales rising as store eyes surveillance upgrade
Summary
Tallgrass Liquor reported roughly $7.42 million in sales for 2024 and income before transfers of about $1.245 million, with gross profit near 30.1 percent; THC-product sales accounted for about 5–6 percent and contributed strongly to gross profit, the manager told the council.
Eric Luther, liquor operations manager for Tallgrass Liquor, presented the store’s 2024 annual report to the Marshall City Council, saying overall sales were about $7,418,000 and income before transfers was $1,245,224.
“Profits from the municipal liquor store also help reduce the property tax levy and provide funds for special projects,” Luther told the council. He said the store employs five full-time associates, 13 part-time clerks and a total staff of roughly 17 people after adding a full-time associate in April 2024.
Luther told the council Tallgrass’s gross profit margin for 2024 was roughly 30.1 percent and that strategic purchasing contributed to higher gross profit. He said beer remained the largest sales category at about 43 percent of sales, spirits about 38 percent, wine about 13 percent and THC products have grown to approximately 5–6 percent of sales. He added that THC products have become a notable contributor to gross profit.
Luther reviewed transfers and budget impacts, saying $400,000 was earmarked for the general fund and $200,000 for debt service on City Hall. He also said monthly sales trend higher in summer and spike in November–December during holidays, and that year-to-date 2025 sales were running about 2 percent below 2024 through midyear but were recovering in July and August.
Luther described store initiatives that support sales and margins: in-store sampling events, a Minnesota craft beer festival with about 37 vendors and roughly 400 attendees, an online ordering platform (City Hives / findmyliquor.com) and four branded beers launched with local partners. He said management is considering a video surveillance upgrade to reduce staff time spent reviewing footage.
For the 2026 proposed budget, Luther said staff is taking a conservative forecast and targeting a gross profit of about 29 percent.
EJ, supervisor of the department, joined Luther at the council table; there was no council action on the presentation, which was provided for information and budget planning.
