is amidst a major moment of transition. Alcohol consumption has cratered among younger generations, Gen Z especially, while even older LDA consumers have cut back. However, this does not have to mean merely doom and gloom.
“ Consumers are more intentional about their alcohol consumption now,” Knight says.“ They’ re looking for experiences, premium products, craft and small batch.”“ There’ s a focus now on quality and uniqueness,” she adds. She sees customers swapping alcohol for alternative categories.
“ People are enjoying nonalcoholic, and cannabis products,” she says.“ That’ s just a consumer change. It just means that people are consuming less alcohol sometimes.”
Knight takes this fact in stride from her governmental perspective.
“ We have to acknowledge the reality that consumption and spending habits have changed,” she said. As a regulatory government agency,“ We are not in the business of promoting consumption. I have made it clear to our governor to expect less revenue from our department if people are consuming less alcohol.”
This is a realistic perspective from a government operation.“ Our job is to maximize profits for the state in a responsible way,” Knight says.
That said, she has addressed the alcohol sales slowdown with her common-sense business approach. This includes 20 % flash sales to help move product off the floor and into customers’ carts.“ That promotion has proven successful,” she says.
As has marketing that encourages shoppers to support Vermont products and businesses.“ We let people know that when you’ re buying local, you’ re benefitting that small family business,” Knight says.
She and her team have utilized social media to highlight local businesses, owners, mixologists and licensees. In an era where consumers are more mindful than ever about what they drink and purchase, tying in local support is a savvy way to encourage additional ringouts at the register.
On the expense side, as revenue retreats, Knight’ s department has reacted by becoming even more efficient. Once again, this reflects common-sense business strategy within a government agency.
“ We’ re always cost conscious,” she says.“ We’ re always thinking,‘ How can we spend less money. If we can’ t have as much control on the revenue side, then we need to control our expenses.”
WHAT’ S NEXT
Knight remains focused on her goal of a new liquor warehouse and combined office space.“ We’ re still working on it,” she says.“ We’ re making progress. It’ s a challenge. Running a business within the structure of a state government, nothing happens as quickly as you want it to.”
The new warehouse and merged office space would“ help
Knight and her team came up with new ways to highlight local products in Vermont store.
us maximize profit for the general fund,” she adds,“ while increasing efficiencies, since we would all be under one roof.”
In the current setup, Knight regrets that the office and warehouse staff do not interact as much as she would prefer.“ There would be more collaborations under one roof,” she explains.“ There would be more teamwork. People would feel more connected and seen. We don’ t see the warehouse people. It’ s really important for people to be in one place at work.”
Overseeing an organization that’ s more than just alcohol requires diverse responsibilities at the Vermont Department of Liquor and Lottery.
“ It’ s definitely challenging when it’ s three distinct industries that you’ re following,” Knight says.“ You have to pay attention to the evolution of each industry, what are the practices and important players.”
Which makes the achievements of the commissioner and her team all the more impressive.
“ We’ re just 80 employees here overseeing all three departments,” Knight explains.“ And we’ re generating $ 280 million in revenue.”
“ We’ re very lean, and all working hard,” she adds.“ That’ s why efficiencies and modernization are so important for us.”• www. stateways. com Spring 2026 • StateWays 17