Norwegian Wine & Spirit Suppliers
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THE ASSOCIATION OF NORWEGIAN WINE & SPIRIT SUPPLIERS - presentation 2008 2 INTRODUCTION The Norwegian Association of Wine and membership in the EEA, (European Economic Area Agreement). Spirits Suppliers – in Norwegian – Vin- og Therefore the sales and marketing of alcohol in Norway is largely brennevinleverandørenes forening (VBF), governed by the same rules that apply for EU members. was funded in 1905. Our members account for some 75% of the wines and spirits sold VBF therefore sees it as its role to ensure that legislation, in Norway. regulations, directives and specifications relating to our business are inaccordance with Norway’ s international obligations. The The Norwegian market for alcohol varies best possible accessibility for suppliers and the opportunity to from most other European markets both compete for listings at the Vinmonopoletl are important principles in regard to drinking patterns and regulations. The Norwegian to uphold. VBF work to ensure a rational and reasonable set of consumption of alcohol has traditional been focused on beer framework conditions for the sales of wines and spirits in the and spirits. This trend has now changed and Norway is moving Norwegian market. As such, we represent the entire trade within towards a mature alcohol marked with high consumer interest for Norway, but equally important we also work for to support the new drinking trends and premium products. The domestic sale interests of all wine and spirits suppliers to Norway. of wine that has doubled during the last 10 years and according to international figures Norwegians are among the inhabitants of The Association is also continually working with issues related to Europe that are using most money on alcoholic beverages. ethics and responsibility. Our objective is that the industry should be regarded as part of the solution and not the problem in regard At the same time the Norwegian alcohol market is object for to alcohol related issues. Following this all our members are bound comprehensive regulations on alcoholic beverages. Following by our comprehensive Ethical Codex and participate in annual the Norwegian Alcohol Act spirits and wine can only be sold at training programs on ethical issues. This is why you can expect the state own retail monopoly (Vinmonopolet’s) own chain of the highest ethical standards when doing business with one of our shops while on-premise licences to Hotel, bars and restaurants member companies in Norway. are granted by the municipals. Since 1996 private actors like the members companies of VBF have been licensed to deal in the In this presentation pamphlet you will find more information about wholesale of alcoholic beverages. This entitles our members to the Norwegian alcohol market, the association and our members. import and export alcoholic drinks and run wholesale businesses in We hope that you will find this information useful for planning Norway. However, wine and spirits can only be sold to retailers and your business in Norway. Please do not hesitate to contact us in the Vinmonopolet. VBF if you have any questions or need for additional information about the Norwegian market. The turnover of alcohol in Norway is not regulated by Norwegian Ingunn Jordheim legislation alone. Norway is associated to the EU through Secretary-general FACTS ABOUT NORWAY 3 Official name The Kingdom of Norway System of government Constitutional monarchy Government Government Capital Oslo (548.000 inhabit.) Population 4 737 200 as of 1 January 2008 Monetary unit Norwegian kroner, NOK 1 USD = NOK 5,0* 1 EUR = NOK 7,93* 1 GDP = NOK 9,89* Exchange rate *as of April 2008 Economic indicators Gross domestic product (GDP), 2006: 2 155 780 mill. NOK Gross domestic product (GDP) per capita, 2006: 462 000 NOK OSLO Relations to EU Membership in European Economic Area (EEA) provides full acess to the EU single market 4 THE NORWEGIAN ALCOHOL MARKET Annual sales of alcohol in Norway pr. Inhabitant aged 15 years and over Traditionally, the Norwegian alcohol consumption has focused on Annualin liters sales of of purealcohol alcohol in Norway 1990 pr. Inhabitant – 2007 aged 15 years and over beer and spirits. This trend has now changed and Norway is moving in litres of pure alcohol towards a mature alcohol marked with high consumer interest for new drinking trends. Even if the recorded consumption is lower 3,0 Spirits than in most other European markets, the Norwegian consumer Wine expenditure on alcohol products isthe highest in Scandinavia. During 2,0 Beer the last years the market for both wine and spirits has been steadily increasing. 1,0 1995 was the first year that Norwegians bought more wine than Source: Statistics Norway 2008 spirits in terms of litres of pure alcohol per adult. Since then the consumer interest in wine has increased each year. In 2007 the domestic sale of wine was more than 35 pct higer than in 2000. Sale of Wine and Spirits 2007 in 1 000 litres Sale of Wine and Spirits 2007 in 1 000 litres In 2007 the annual sale of wine increased by more than 4 pct. 80000 70000 Wine Following the reductions in taxes on spirits in 2002 and 2003 the recorded consumption of spirits has mounted and the sale in 2007 60000 Spirits 50000 was more than 36 pct higher than in 2000. In 2007 the sale of spirits 40000 increased by 5.2 pct. 30000 20000 10000 0 5 UNRECORDED MARKET Norwegian Consumer expenditure on alcohol in millions NOK 2006 There is today a significant amount of alcohol that escapes official Norwegian Consumer expenditure on alcohol registration. In Norway this unrecorded consumption is assumed in millions NOK 2006 to account for 25-30 % of overall consumption, a very significant 25000 proportion in other words. The main sources for the unrecorded 20000 Spirits consumption are border trade, smuggling and Tax Free. Wine 15000 Beer T o tal 10000 5000 0 Year 2006 Source: SIRUS 2008 6 RETAIL & HORECA THE NORWEGIAN RETAIL SYSTEM FACTS ABOUT THE NORWEGIAN RETAIL MONOPOLY In the interwar years all the Nordic countries except Denmark, Name of state monopoly: Vinmonopolet established state monopolies with exclusive rights to produce, import, export, and wholesale and retail of all alcoholic beverages, Number of outlets: 244 by the end of 2008 except beer. In Norway the Vinmonopolet was established in 1922. Following the Norwegian membership in the European Economical Monopoly’s privilege: Retail of all alcoholic beverages with Area in the mid 90s, the state run alcohol system took a more liberal alcohol content higher than 4,76 vol. stance and all functions other than retail have been opened up for pct. competition. During the last years the number of Vinmonopol outlets Maximum opening hours: 09.00 – 18.00 (week) has steadily increased. 09.00 – 15.00 (Saturday) Internet sale: Yes Homepage: www.vinmonopolet.no 7 HOTEL, RESTAURANTS AND CATERING (HORECA) Number of establishments with license to serve alcohol, 1990-2006 All hotels, bars and restaurants will need a license to sell alcoholic No of establishments with municipal license to serve alcohol 1990-2006 beverages. The license is granted by the local Norwegian municipals. 8000 In 2006 there were 7263 establishments licensed to serve alcohol in No. of establishments Norway. 5910 or more than 80% of such premisses were licensed to 7000 serve spirits. The sale of wine and spirits at HORECA is between 10 and 15% of the total domestic sale. 6000 5000 2000 4000 1990 2006 Source: SIRUS 2008 8 REGULATIONS & DUTIES REGULATIONS TAXES Norway has today some of the most comprehensive regulations on Norway has the highest taxes on alcohol among the Scandinavian sale and marketing of alcoholic beverages. The fundaments in the countries. Norwegian policy on alcohol are the Retail monopoly, the ban on advertising and the taxes on alcohol. Norwegian taxes on alcohol 2008 The Norwegian taxes on wine and spirits are the following. As member of the EEA the Norwegian regulations on alcohol are due to be in compliance with the regulations in the EU. Following Alcohol taxes this the Norwegian regulations on alcohol have been slightly more Spirits: NOK 5,89 per % per litre liberal during the last 10 years. Wine: NOK 3.84 per % per litre THE MAIN REGULATIONS ON ALCOHOL IN NORWAY Environmental taxes Glas and metal: NOK 4,74 per unit Legal Drinking Age: Plastic: NOK 2,86 per unit 18 y.o (all alcoholic beverages below 22 vol. pct) Cardboard: NOK 1,18 per unit 20 y.o (all alcohol products above 22 vol. pct.) Advertising: Tax on disposable packaging: NOK 0,97 per unit Not allowed towards consumers Value added tax (VAT) Drink – drive limit: All alcoholic beverages: 25 pct. 0,02 % Blood Alcohol Concentration (BAC) ETHICS & RESPONSIBILITY 9 The Norwegian Association of Wine and Spirit Suppliers (VBF) and its member companies share the wider public concern that alcoholic beverages should only be consumed in responsible and moderate conditions. Alcoholic beverages are products made for adult consumers and should not be used by those below the legal age limit. As suppliers of alcoholic beverages to the Norwegian market all our members acknowledge, that they have an important responsibility to secure that all aspects with their activities are conducted in accordance with the highest ethical standards. The Association has introduced a Code of Conduct that is signed by all our members and has established an Independent Complaints Panel to consider alleged violations of the Code. The Code of Conduct is complimenting the existing Norwegian Alcohol Act and its directions. The Code of Conduct is in appliance with the Common Standard for Commercial Communications prepared by the Amsterdam Group1. An English translation of the Code of Conduct can be found at our homepage and in the back of this brocheure.