By Jessie Burchette
jburchette@salisburypost.com
The Rowan-Kannapolis ABC system has turned over $50,000 in profits to the county for distribution.
The $50,000 check is the largest the ABC system has given the county in years.
County commissioners have been more vocal in recent years about decreasing profits in the system, despite increasing liquor sales.
ABC officials maintain the expansion of the system, upgrading of stores and commitment to law enforcement have kept profits low.
The decision to give the give the $50,000 check to the county came at the first meeting Commissioner Tina Hall attended after being appointed liaison to the ABC board.
Hall recently questioned ABC operations, asking why other county and city systems generate hundreds of thousands of dollars in profits, some with less in sales than Rowan-Kannapolis ABC, which has $7 million in annual sales.
Thus far this fiscal year, the ABC system has turned over $70,000 in profits to the county.
The last time the ABC system turned over more than $70,000 for distribution was in 2002 when $80,544 was disbursed to the county.
Under the distribution formula, the county and the city of Kannapolis will each get 32.5 percent of the $70,000, or $22,750 each. Salisbury will receive $14,000. The county’s other eight towns will split the remaining 15 percent, or $10,500.
Despite a recession, the ABC system may have had its best December with sales of more than $1.1 million. That’s up $72,000 from the same month in 2007, and up more than $211,000 from December 2006.
Terry Osborne, the system’s general manager, recently reported to the board that profits for the quarter totaled $130,000.
“It was our best quarter,” said Osborne. “It’s so unusual with the economy going down the hill.”
The board voted unanimously to turn over $50,000 to the county, use $60,000 to pay on debt and keep $20,000 in reserve.
Osborne said the board followed the advice of Ralph Ketner, one of the founders of Food Lion, who serves as an adviser. Ketner has urged the board to pay debt as quickly as possible. The system has incurred more than $300,000in debt to open three new stores in Kannapolis and pay off a loan on the North Cannon Boulevard Store since the merged system was created in 2005 through special legislation.
“To provide the distribution in an economic downturn is a tribute to our three board members who are very business-oriented and the good advice of Ralph Ketner,” Osborne said.
One Kannapolis store continues to run at a deficit, but board members are hopeful when residential and commercial development restarts, it will pay off.
The Gateway store showed a $6,500 deficit for December. It was the only store of the seven in the system to show a deficit.
Osborne noted that liquor-by-the-drink sales are expected to get a bump with two new Salisbury permit holders ó LongHorn Steakhouse and Olive Garden, both in the Wallace Commons shopping center off Julian Road.
Contact Jessie Burchette at 704-797-4254.