Virginia ABC fiscal year sales lower than expected

The Virginia Alcoholic Beverage Control Authority expects to return a profit of $231 million to the state this fiscal year despite lower-than-expected sales.

The authority expects to return about $231 million in proceeds to the state’s general fund by June 30, the end of the fiscal year, exceeding the state’s profit transfer requirement by about $500,000, according to figures presented at a Virginia ABC board presentation last week.

State ABC leaders have revised expectations for this year’s store sales, forecasting a drop of about $20 million from the previous fiscal year. They also adjusted expectations for net revenue to decline by more than $15 million.

However, the authority met its required revenue target by finding about $5.2 million in operating-expense underruns.

The ABC’s financial presentation may indicate that Virginians, like other Americans, are drinking less.

The percentage of U.S. adults who report drinking alcohol has dropped to 54%, according to an August 2025 report by Gallup. It is the lowest percentage since the Washington, D.C.-based analytics firm began tracking Americans’ drinking behavior in 1939.

The decline in U.S. alcohol consumption does not appear to be caused by consumers shifting to marijuana, according to Gallup. Instead, the firm’s experts suggest the drop is connected to research indicating alcohol consumption may negatively affect health

March and fiscal 2026 sales

In the month of March, store sales were about $5.1 million lower than expected, according to the ABC, and gross profits were $1.7 million below forecast.

The authority cut budgeted operating costs by about $600,000 in March, though. The report cites unfilled positions, favorable telecommunications-services costs and other factors for the cost reduction. Even so, March ended with $1.1 million less profit than expected.

From July 2025 through the end of March, store sales were about $10.6 million below forecast. However, the authority cut operating expenses by about $5.7 million through budgeted attrition, decreased regulatory costs and other factors, resulting in $4.3 million more in net profit than budgeted.

Other factors also impacted this year’s bottom line. About $2 million in the authority’s fiscal 2026 budget went to pay a one-time $1,500 bonus to ABC employees, which Gov. Abigail Spanberger approved in February. For this fiscal year, ABC leaders were able to carry forward $4.8 million from last year’s profit.