Alcohol sales, licenses up in Iowa

DES MOINES - Alcohol sales in Iowa increased 4 percent in fiscal year 2016 over a year ago, the state's Alcoholic Beverages Division reported Wednesday.

Total alcohol sales reached nearly $289 million, with overall revenues surpassing $330 million, the division reported. Overall revenues include licensing fees and beer and wine taxes.

'The alcohol beverages industry is thriving in Iowa,” division administrator Stephen Larson said in a statement. 'We are continuing to do our best to ensure that our stakeholders can succeed while we provide the regulatory framework needed to keep our communities safe and healthy as well as working to revert as much revenue to the general fund as possible.”

More than $131 million went to public accounts, according to the division, more than $105 million of which was deposited in the state's general fund. More than $21 million went to the state public health department for substance abuse and prevention programs and nearly $4 million went to local governments that issue licenses.

Under Iowa law, the state agency is the sole wholesaler of spirits in Iowa and is required to mark up the products to retailers by 50 percent.

Whiskey and vodka continued to be Iowa's best-selling liquors, both surpassing 1.6 million gallons sold in the fiscal year. Cocktails showed the biggest growth in fiscal 2016, with a 9 percent increase in gallons sold over the previous year.

The top liquor brands, far and away, were Black Velvet Canadian Whiskey and Hawkeye Vodka.

The state also saw a 6 percent increase in licenses issued, according to the report, with the biggest jumps - as a percentage - in wine retail licenses.

The division suspended 48 licenses in the fiscal year; the most common reasons were serving alcohol to minors, delinquent tax payments or failure to maintain dram shop insurance.