Minnesotans are high on newish hemp-derived products that hit liquor store shelves in 2023.

A report released Wednesday by State Auditor Julie Blaha’s office underscores the boost that a line of THC-infused beverages and gummies are bringing to profits to Minnesota’s liquor stores owned and operated by cities.

Yes, there are still 210 municipal liquor stores in Minnesota.

In 2023, the stores made a net profit of $31.6 million on record sales of $437 million. And the authorization of hemp-derived THC products had a lot to do with it, operators of the stores say.

“Let me tell you, the horse is out of the barn,” said Paul Kaspszak, executive director of the Minnesota Municipal Beverage Association. “It’s running down the road. I know about horses running down the road, you can’t see his tail. OK, it’s here to stay.”

This was the first report to account for the legal sales of gummies and beverages containing CBD or THC. Minnesota legalized full-fledged cannabis in 2023, but broad retail sales have yet to begin, with the exception of dispensaries on tribal lands.

“We don’t have enough years to really call trends on this,” Blaha said, deferring to those on the ground to offer their firsthand accounts.

While the report doesn’t break down the types of sales, operators who appeared with Blaha for its release said they have noticed a distinct shift in the direction of alcohol alternatives. They said that wine and beer sales have trended down at the same time.

St. Anthony Village liquor operations director Mike Larson said he began offering the THC products in August of 2023 and has seen strong demand from customers.

“We have seen sales grow dramatically month after month,” he said. “Since the introduction, we have tracked an immediate impact on sales and see that our consumers are interested in learning more about the benefits of using and trying these products.”

Overall, Blaha said municipal liquor stores have experienced net profit growth over the last several decades.

“Here’s the top line: municipal liquor stores show 28 years of consecutive growth, even with an evolving market,” she said. “They’ve evolved into places to meet as a community, as well as a significant resource for public revenue.”

Thirty-one cities reported net losses in 2023, according to the report, most of which were in greater Minnesota.

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