Will closing liquor stores lower alcohol consumption

Information about the Swedish beer market

Transcript

1 Foreign trade office Stockholm Karlaplan 12 SE Stockholm / Sweden TFEW research for the Mohrenbrauerei Information on the Swedish beer market 1. Alcohol monopoly: Sweden is temporarily retaining one of the strictest alcohol monopolies in Europe, although it has been under increasing pressure to harmonize the EU since joining the EU . The retail trade in alcoholic beverages (with an alcohol content of more than 2.25% or 3.5% for beer) is reserved for the state retail organization "Systembolaget", which has around 400 shops in Sweden. While Sweden was able to maintain the retail monopoly for the time being, the original import, wholesale and production monopoly had to be given up in the course of EU harmonization; Likewise, after the increase in private import volumes in travel, Sweden is under increasing pressure to reduce the alcohol tax, since the prices for alcoholic beverages are much lower in its neighboring countries, especially in the Baltic states. 2. Types of beer: In Sweden, beers are divided into three different classes depending on their alcohol content - Lättöl (Leichbier), Folköl (Volksbier) and Starkbier (strong beer). Beer with an alcohol content of <2.25 vol%, the so-called Lättöl or Class I beer, is neither subject to a certain age limit nor alcohol tax. The term folk oil (class II) is used to summarize beer with an alcohol content of> 2.25 vol% to 3.5 vol%, which in Sweden may be sold to adults in grocery stores, petrol station shops, etc. Folk oil appeared on the Swedish market after the so-called mellan oil - beer with an alcohol content of up to 4.5% by volume - was banned from food in 1977 and has only been available in Systembolaget stores ever since. Today, beer with an alcohol content of> 3.5 vol% belongs to the group of strong oil beers Class III. At this point it should be noted that due to the alcohol monopoly in Sweden, beer is only available in the special liquor stores Systembolaget (see under 6) or in licensed restaurants and bars from an alcohol content of 3.5%. Systembolaget AB is only allowed to sell wine, strong beer and strong alcohol to people over the age of 20. Otherwise, the age limit for beer is at least 18 years.

2 In Sweden beer is divided into two classes with different taxation based on its alcohol content: Beer with less than 2.8% alcohol by volume, so-called Lättöl (light beer) is not subject to any alcohol tax. From 2.8% alcohol by volume, the alcohol tax is 1.47 SEK (approx. 0.15 euros) per liter. The most popular Swedish beers among the strong beers include: Sofiero Original Åbro Pripps Blå Blågul Norrland's Guld Falcon beer 3. Consumption habits: Over the past few years, alcohol consumption in Sweden has seen an unbroken increase. The consumption of spirits rose from around 19 million liters in 2004 to 24.3 million liters in 2005 1. Beer and wine are enjoying increasing popularity, which is reflected in the current sales statistics of the Swedish retail monopoly for alcoholic beverages (over 3.5% alcohol by volume), Systembolaget. Beer in particular has become the most popular alcoholic drink among Swedish youth alongside wine, but mixed alcoholic drinks (e.g. Smirnoff Ice, Cube Sour Lemon, Aquatini High Lemon etc.) are also showing stronger increases. After the sale of beer fell briefly in the course of the relaxed import regulations in 2004, the market has since recovered. The consumption of beer rose from around 103.4 million liters in 1979 to 464.9 million liters in 2006 (excluding private imports and contraband goods) 2. According to statistics from the Swedish brewery association Sveriges Bryggerier, consumption rose in particular in Sweden of strong beer over the years from 10.8 liters per inhabitant in 1979 to 30.1 liters in 2006. A comparison between 2005 and 2006 alone shows an increase of 1.2 liters from 28.9 to 30.1 liters. 1 See Statens folkhälsoinstitut - Swedish National Institute of Public Health under: 2 See Bryggeristatistik under:

3 While folk oil (people's beer) enjoyed the greatest popularity among the Swedish population in the 1990s, the per capita consumption of stout oil has increased continuously since the beginning of the 80s, the stout beer has risen to become the most popular beer in Swedes and has continued to build its lead since then out. The less popular light beer, on the other hand, remained constant between 11.5 and 13.2l in the period from 1979 to the beginning of the 90s, before consumption continued to decline until 2006. Expressed as a percentage, 68% stout oil was consumed in Sweden in 2005, compared to 32% light and folk beer. 11 years earlier, in 1994, the values ​​were almost reversed, with a consumption of 64% light and folk beer (folk oil) compared to 36% strong beer. Figure 1: Beer consumption in liters per inhabitant in Sweden Strong beer "Folköl" Light beer Total Source: Sveriges Bryggerier Market size In 2006, around 195.6 million liters of strong oil were consumed in Sweden via Systembolaget. This means a growth of around 9.3% compared to the previous year (2005: 179 liters). Of this, 158 million liters came from Swedish production, while around 37.6 million liters of beer were imported from other countries. 3 Per capita (over 15 years) this results in an average annual consumption of strong oil of around 30.1 liters (2005: 23.9 liters). If you add up the consumption of light, folk and strong beer, every Swede consumed around 51.0 liters of beer on average in 2006, according to the figures from Bryggeristatistik. Compared to the previous year, this means a slight increase of 0.5 liters. 3 Source: Systembolagets totalförsäljning per varugrupp, 2006, under:

4 According to statistics from Systembolaget, alcoholic beverages traditionally find the strongest sales especially around mid-summer (summer solstice) in June, but also during Easter, New Year and the pre-Christmas period. In a European comparison of beer consumption per capita in 2004, Sweden ranks 15th in the table with 51 liters. The front runner is the Czech Republic with 160 liters per capita, followed by Ireland (118), Germany (117) and Austria (111). Fig. 2: Beer consumption in Europe in measurements liters per person and year (according to sales figures) Country liters Country liters 1. Czech Republic Finland Ireland Netherlands Germany Spain Austria Portugal Luxembourg Norway Great Britain Sweden Denmark Iceland Belgium Greece Slovakia France 35 Source: Carlsberg (In In connection with the consumption figures, it should also be noted that the increase in beer consumption can also be linked to the fact that, according to the Statens folkhälsoinstitut (FHI) national health institute in Sweden - the number of restaurants that have a license to sell Alcohol has risen steadily in recent years. After only about restaurants had a license to sell alcoholic beverages in 1985, the 5000 mark was broken in 1994 and today alcohol consumption is possible in more than 9000 restaurants in Sweden. Fig. 3: Number of restaurants with a permanent serving license for alcohol Source: Alcohol Statistics 2005, FHI, p. 32, under

5 5. Swedish import and export figures As can be seen from the figures from Systembolaget, Swedish beer producers have the largest share of their own market. Carlsberg Sverige AB was the largest supplier in the strong beer category in 2006 with a market share of 26.1% (cf. 2005: 27.4%), followed by Spendrups with 18.7% (2005: 17.4%), Kopparbergs / Sofiero Bryggeri with 17.3% (2005: 20.2%) and Åbro Bryggeri with 14.8% (2005: 12.3) 4.As already mentioned, around 81% of beer sales in this category come from Swedish production, only 19% are imported. In total, tons of imported beer from all over the world were sold on the Swedish market at a price of the equivalent of EUR 62.1 million each year. Most of the imports come from the 27 EU member states (51,555t). The main importer in the beer sector is still Denmark with tons of light, folk and strong beer, despite the declining scope of supply. In 2004 it was still overwhelming. Germany follows in second place with t and also shows declining figures compared to the previous year (2005: 12840t). In contrast, the Czech Republic (6947.9 t), Great Britain (3489.1 t) and the Netherlands (1939.4 t) were able to further expand their market share last year. Finland suffered the biggest losses last year, but with an import of 1,565.1 tonnes of beer in 2006 it is the sixth largest importing country on the Swedish beer market. With around 829.7 tonnes in 2006 and declining import figures, Austria ranks among the lower ranks of the Swedish beer importers. Fig. 4: Sweden's beer imports in the years in 100kg DK D CZ UK NL FIN Source: WKO referring to EUROSTAT 4 Systembolagets tio största leverantörer jan-dec 2006 relaterad till försäljningsvolume referring to Systembolagets försäljningsstatistik 2005 at:

6 If one equates the export figures with the import figures, it becomes clear that Swedish beer has not had it easy in the past to assert itself outside its own borders against powerful European and international competition. Nevertheless, the export volume rose from .5t in 2004 to 5t in 2005, even tons of Svensk oil could be sold abroad at a price of around 16.9 million euros. Around 95% of exports went to European countries, above all Germany (20346t), Denmark (1720t) and Norway (409.8t). 6. Private importation and smuggling of beer Since 2004, the importation of alcohol from the EU has in principle been free for Swedish private travelers. The quantity limit for the import of beer for personal use has been 110 liters since then. The loosening of the import law not only led to the possibility of privately importing larger quantities of alcohol into Sweden, but also to an increase in illegal alcohol smuggling and trade. Statistics from the brewery association from 2005 clearly show that both private and illegal alcohol imports took place before the law was changed: Fig. 5: Private import and smuggling to Sweden million liters per year, of which private import / self-brewed. 65 and smuggling 37 million liters, of which private import / proprietary. 75 and smuggling 55 million liters, of which private import / proprietary. 91 and smuggling 73 million liters Source: Svenska Bryggeriföreningen: Vitbok om Svartöl, April 2005 In addition, statistics from the Brewery Association show that in 2005 an estimated 4 out of 10 strong beers in Sweden came to Sweden through private imports or smuggling and were therefore not taxed in Sweden. According to estimates, a total of 148 million liters of alcohol were imported into Sweden across the borders in 2005, around 71 million liters as private imports for personal use and 77 million liters of contraband. Since 1994, when an estimated 9% of strong beer consumption came to Sweden through private imports or smuggling, the number of strong beer not for sale in Sweden has quadrupled by 2005. At that time it was an estimated 36% of the total consumption of strong beer. To get cheap alcoholic beverages, Swedish citizens like to visit their neighboring countries. The import channels for private alcohol goods and smuggling take place via the neighboring countries Denmark, Finland and Germany, but also ferry trips to the Baltic states or to Åland are very popular with Sweden in order to avoid the high alcohol taxes

7 7. Types of packaging Interestingly, most beer in Sweden is sold in cans. According to a statistical source from the Swedish Brewers Association, 65% of the alcoholic beverages produced by member breweries (excluding light and non-alcoholic beers) are canned. Beer in kegs accounts for 11.2% of total production. A further 9.3% of the alcoholic beverages are filled in 33 cl returnable bottles and 7.2% in 50cl returnable bottles. Only 6.1% of the beer produced by the member breweries is sold in one-way bottles. The trend towards canned beer had emerged with similar clarity in the past few years. 8. Important players on the Swedish beer market As mentioned at the beginning, a state-owned company - Systembolaget - has the monopoly over the retail trade of beverages with an alcohol content of> 3.5%. SYSTEMBOLAGET Address: SE Stockholm Visiting address: Kungsträdgårdsgatan 14, SE Stockholm Tel: +46 (0) Internet: In addition to Systembolaget, there are other important players on the Swedish market, including the Swedish breweries, which have organized themselves into an industry association: SVERIGES BRYGGERIER Swedish Brewery Association Address: Box 5115, Stockholm Visiting address: Grev Turegatan 9, 1tr Telephone Internet: The Swedish Brewery Association, which was named Sveriges Bryggerier at the end of 2006, is an industry organization for Swedish breweries as well as cider, lemonade and water manufacturers. Sveriges Bryggerier is a member of the European brewery organization Brewers of Europe (The beer producers listed below are members of the Association of Brewers in Sweden, above all the three largest breweries Carlsberg Sverige AB, Kopparbergs Bryggerie AB and Spendrups Bryggeri AB: - 7 -

8 CARLSBERG SVERIGE AB Address: Box 164, SE Falkenberg Tel: +46 (0) Homepage: Bromma Address: SE Stockholm Visiting address: Bryggerivägen 10, SE Stockholm Tel: +46 (0) Falkenberg Address: Box 164, SE Falkenberg Tel: + 46 (0) Market share of beer sales at Systembolaget: 26.1% (2006) SPENDRUPS BRYGGERI AB Address: Box 3006, SE Vårby Visiting address: Vårby Allé 39, SE-143 Vårby Tel: +46 (0) Homepage: Market share of Beer sales at Systembolaget: 18.7% (2006) KOPPARBERGS BRYGGERI AB Address: SE Kopparberg Visiting address: Klotenvägen 4, SE Kopparberg Tel: +46 (0) Homepage: Breweries affiliated to Kopparbergs Bryggeri AB: BANCO BRYGGERI AB Address: Box 103 , SE Skruv Tel: +46 (0) SOFIERO BRYGGERI ZEUNERTS BRYGGERI AB Address: Box 313, SE Sollefteå Tel: +46 (0) Market share of beer sales at Systembolaget: 17.3% (2006) - 8 -

9 AB ÅBRO BRYGGERI Address: Åbrovägen, SE Vimmerby Tel: +46 (0) Homepage: Market share of beer sales at Systembolaget: 14.8% (2006) GREBBESTAD BRYGGERI AB Address: Datavägen 14B, SE Askim Tel: +46 (0 ) Homepage: JÄMTLANDS BRYGGERI AB Address: Pilgrimstad Center, SE Pilgrimstad Visiting address: Pilgrimstad Center, SE Pilgrimstad Tel: +46 (0) Homepage: KRÖNLEINS BRYGGERI AB Address: Bryggareg. 7-9, SE Halmstad Visiting address: Klammerdammsgatan 26, SE Halmstad Tel: +46 (0) Homepage: GOTLANDS BRYGGERI (Owner: Spendrups Bryggeri AB) Address: S: t Hansgatan 47, SE Visby Tel: +46 (0) Homepage: TVÅ BRYGGARE Österlenbryggarna AB Address: Simrishamnsvägen 44, SE Tomelilla Tel: +46 (0) Homepage:

10 8. Further sources of information: STATENS FOLKHÄLSOINSTITUT Swedish National Institute of Public Health Address: Forskarens väg 3, SE Östersund Tel: +46 (0), Fax: +46 (0) Homepage: For more information on the Swedish alcohol market, see our industry profile Sweden Wine, which you can download from the following website: AUSSENWIRTSCHAFT ÖSTERREICH (AWO) Wiedner Hauptstrasse 63, Postfach 150, 1045 Vienna, AWO domestic editorial office, telephone:, 4214, 4321, fax:, Internet: