Below you can find answers to some the most common questions concerning the Swedish wine and spirits market.
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Q: What do Swedes drink?
Sweden is not all that different from other European countries. In terms of consumption, Swedes mainly drink beer, from the many domestic breweries across the country. Wine consumption has been growing significantly over the last several decades. The Swedish consumers taste is continuously developing and changing as time goes on. Being a country with little domestic wine production, we Swedes have learnt to appreciate wines from many other regions around the world. Consumers learn more about wine every year and the quality and their respective value is increasing. People in Sweden tend to be prepared to pay more for higher quality. Although, more than 50% of wine sales at Systembolaget are in Bag-in-Box and Tetrapak. Swedes are also developing a strong taste for whisky, most notably, single malt varieties.
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Q: How does the Swedish trade for wine and spirits work?
The wine and spirits trade in Sweden has opted out of the free trade rules that are common among most other products in the EU market. The customer retail market for alcohol is controlled by the state-owned monopoly, Systembolaget. It is however also possible to sell products directly to licensed restaurants, hotels and bars (horeca). Beverages with an alcoholic content below 2.25% are not covered by the monopoly.
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Q: How does the monopoly operate?
The state-owned monopoly, Systembolaget, runs a chain of about 450 stores containing close to 3,000 different articles of alcoholic beverages. Some of these products are distributed through all stores while others are distributed through only a select number. In addition to this, over 15,000 products are available on Systembolaget’s website and can be ordered to a store location for pick-up or directly to the consumer. Systembolaget operates as an efficient company with the ambition to serve a broad and first-class range of products to Swedish consumers. Systembolaget is solely a retailer and is not allowed to act as a producer or importer of products. For more details, visit www.systembolaget.se.
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Q: How does Systembolaget choose their product range?
Systembolaget has adopted certain business principles to create a sort of free trade within the monopoly’s framework. The ambition is to combine a base of popular products along with a regular product rotation, where slow moving products are replaced by new products in order to keep the market open for new launches and producers. New products are launched four times a year (March, June, September and December). In addition to these main launches, a number of exclusive products are launched in smaller volumes at other times during the year.
This goes hand-in-hand with Systembolagets' aim to offer an attractive and up to date assortment, with high-quality products at low costs. To select new products Systembolaget uses a tendering process. Tenders are specified to match the trends in the market and the expectations of customers. The idea is to keep the Swedish market competitive, demanding and in line with international trends.
Products may also qualify for listing based on sales performance from the ordering range.
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Q: What is the role of the importers?
Importers have a special tax license which enables trade in alcoholic beverages. Systembolaget requires importers for the supply of their products. The importer is the legal supplier to Systembolaget. The importer buys products from producers and sells those products to Systembolaget. Responsibility is placed upon the importer for holding goods in stock, for receiving orders from Systembolaget and for the distribution of those products to Systembolaget shops in Sweden. The importer coordinates the tenders and offers for new products initiated by Systembolaget. Business between Systembolaget and importers is regulated by an extensive agreement.
The importer also takes on responsibility for the marketing of products in Sweden and can also sell to restaurants, hotels and bars (horeca), directly or through independent wholesalers.
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Q: What kind of marketing activities are allowed?
Swedish alcohol and marketing legislation contain strict rules for the marketing of alcoholic beverages. In general, a high level of moderation is required and no positive associations with drinking are allowed. There are bans on advertising towards people below the age of 25, outdoors advertising and many other restrictions.
For a full breakdown of alcohol and marketing legislation, see Alkohollag (2010:1622).
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Q: How is the trade in alcoholic products taxed in Sweden?
All sales of alcoholic products are taxed based on alcohol content. Below are the tax rates for alcoholic beverages.
Wine, Beer and Cider:
- No tax on products below 2.25% vol alc.
- 10,38 SEK/L on products ranging between 2.25-4.5% vol alc.
- 15,34 SEK/L on products ranging between 4.5–7% vol alc.
- 21,12 SEK/L on products ranging between 7-8,5% vol alc.
- 29,58 SEK/L on products ranging between >8.5-15% vol alc.
- 61,90 SEK/L on products ranging between >15-18% vol alc.
The alcohol tax for a 75cl bottle of normal wine (12.5% vol.) is 22,19 SEK and 5,55 SEK VAT on top of the alcohol tax (total tax 27,73 SEK).
Spirits:
- 526,97 SEK/L on products containing 100% vol alc.
The alcohol tax for a 70cl bottle of spirit (40% vol.) is 147,55 SEK and 36,89 SEK VAT on top of the alcohol (total tax 184,44 SEK).
The tax is normally paid by the importer under a certain tax regime with the Special Swedish Entity for alcohol taxes. VAT of 25% is added and included in the consumer price.
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Q: Can importers, wholesalers or retailers sell directly to consumers?
The simple answer is no. Systembolaget possesses the monopoly to sell alcohol products to consumers in Sweden, with the exception of tax-free stores at airports and ferries. Restaurants may obtain a license to serve to customers but only for beverages that are to be consumed at the restaurant.
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Q: Can anyone import directly for their own consumption?
Yes, generally speaking this is possible. You can, with certain volume restrictions, bring alcohol beverages over the boarder while travelling. You can also buy, or “import”, directly for your own consumption, but you will be held liable to pay Swedish alcohol tax on all such products.
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Q: How do restaurants buy and sell alcoholic beverages?
Restaurants require permission, or a permit, to serve alcoholic beverages. Permits are applied for, and given by, authorities on a community level. There are more than 13,000 permits currently granted in Sweden. Restaurants can buy wine, spirits and strong beer directly from importers or via wholesalers.
