THE NORWEGIAN MONOPOLY

2021 THE NORWEGIAN RETAIL MONOPOLY

• Vinmonopolet is 100% owned by the state

• Exclusive right to retail , spirits and strong beer

• Society’s most important instrument to ensure responsible sales of alcohol

• Neutrality: No favoritism between brands, producers, countries or suppliers

• No advertising, no promotions, no in-store events

• All sales through importers. No direct trade with producers VINMONOPOLET'S NETWORK OF RETAIL STORES

• Currently 338 stores throughout the country

• 115 million liters sold in 2020

• 7 specialist stores (wine, spirits)

• 11 stores with an extra large selection of beer

• 96% of the population is living within a 30 km. distance from a Vinmonopolet store. SHOP CATEGORIES

Vinmonopolet’s shops are split into 6 categories, based on their sales volume. Annual sales range from 1 mill. liters per year in the largest stores to less than 35 000 l. for the smallest.

2019 CATEGORY 1 CATEGORY 2 CATEGORY 3 CATEGORY 4 CATEGORY 5 CATEGORY 6 Products 182 410 665 938 1265 1717

Yearly sales in liters <35 000 35-100 000 100-200 000 200-350 000 350-500 000 500 000 +

Number of shops 19 75 60 67 52 62

Accum. no. of shops 338 316 241 181 114 62

7 SPECIALIST STORES 11 STORES WITH EXTRA BEER ASSORTMENT: O S L O – AKER BRYGGE B E R G E N – BERGEN STORSENTER O S L O – C C V E S T T R O N D H E I M – BANKKVARTALET B E R G E N – VALKENDORFSGATE KRISTIANSAND – LILLEMARKENS T R O N D H E I M – VALENTINLYST S A N D N E S – KVADRAT S A N D N E S – SENTRUM T R O M S Ø – LANGNES HAMAR MOLDE SANDEFJORD ÅLESUND BODØ – C I T Y N O R D 2018

2 SHOP PROFILES TO ADJUST THE PRODUCT ASSORTMENT TO REGIONAL DIFFERENCES AND CUSTOMER BUYING PATTERNS ONE ASSORTMENT – S I X R A N G E S SOME CONTROLLED BY US, SOME BY THE IMPORTERS

Vinmonopolet has a • Vinmonopolet decides what is • 1.561 product selection purchased for the basic-, one that is unmatched. Basic lot- and special ranges. 85% • Importers decide what they would like to launch and sell One lot Test through the ordering, additional and test range.

More than 29 000 products/SKUs available today

20.507 Ordering Special 12%

Additional PRODUCT RANGES SALES BY PERCENTAGE, AND NUMBER OF PRODUCTS

100%

90% 1 561

80%

70%

60%

50%

40%

30%

20% 20 507

10% 25 561 2 762 114 1 175 0% Basic range Ordering range One lot range Special orders Special range Test range Additional range

P E R 01.01.2020 PURCHASING SYSTEM- BASIC AND ONE LOT RANGE

Product & Category managers Purchaser Quality

Receiving and Sensory testing Analysis and Inquiry of offers Tender plan controlling of accepted Assortment from twice a year offers from samples Strategy wholesalers wholesalers (if required)

Launch in stores 6 times per year Quality Purchaser

Quality control: launched Evaluation and Product data product is in purchasing and samples accordance to decision offered products PURCHASING PROCESS FOR THE BASIC- OG ONE LOT RANGES

1 2 3

4 5 6

7 TENDER SPECIFICATIONS - LAUNCH PLAN

• Vinmonopolet publishes a tender plan twice a year. • This plan is available for the wholesalers, and covers what Vinmonopolet is planning to purchase for the basic- and one lot range for a 6 month period.

• Product launched in the Basic assortment are listed for a period of 12 months. • Future tenders are also available in English at our website www.vinmonopolet.no VINMONOPOLET’S SENSORY TESTING LABORATORY

• Accredited sensory testing laboratory

• Specialized assessors, coordinated and prepared for each tender

• Predefined quality criterias for each tender

• All samples are blind tested in randomized order

• Objective evaluation of samples against specification

• No influence of the judges

• All suppliers are treated equally All approved offers are tested by Vinmonopolet’s sensory testing panel, where a panel of expert tasters objectively and independently assess • Transparent purchasing process the degree of accordance to the relevant specification. RANKING SYSTEM

• Vinmonopolet uses a ranking system based on the number of liters sold over the last 6 months in 62 full-range shops (category 6) to decide which products will be retained in the basic range after the initial guaranteed period.

• The ranking system is based on product groups, which are in turn subdivided into price segments. For each price segment, Vinmonopolet decides the number of products that it ideally wants to stock – based on market share and other defined criteria. SALES IN , RED WINE

• In 2020, Vinmonopolet sold 54,1 mill. liters of red wine, +40,3% from 2019

• Italy has kept the leading position for red wine in Norway since 2006

• Bag-in-box has increased share from 57,8 % in 2019 to 61,2% in 2020 SALES IN NORWAY, WHITE WINE

• In 2020, Vinmonopolet sold 27,4 mill liters of white wine, a +44,2 % increase from 2019

• Germany and France are the two leading countries for white wine in Norway

• Bag-in-box has increased its market share form 55,8% in 2019 to 59,7 i % in 2020 SALES IN NORWAY,

• In 2020, Vinmonopolet sold 7 mill liters of sparkling wine, a +28,3 % increase from 2019

• Italy, France and Spain are the leading countries for sparkling wine in Norway

• England has emerged and is now at the 6th place before German Sekt with a 159% increase form 2019 SALES IN NORWAY, ROSÉ WINE

• In 2020, Vinmonopolet sold 4,75 mill liters of rosé wine, a +72,5 % increase from 2019

• France, Italy, USA and Spain are the leading countries for rosé wine in Norway CANADIAN PRODUCTS LITERS SOLD SALES TRENDS IN NORWAY 6 MAIN SALES TENDS

GREEN WORLD HEALTH CLASSIC WORLD AUTHENTIC EXTENDED WINE CONVENIENCE PRODUCTS WORLD

* Reduce: Light * Exclude: Without * The classics are * Small bottles *Interest in product * Nordic coutries, weight packaging, additives, sugar back origin England, Canada low carbon etc. footprint * Alternative * NoLo-alcohol Bordeaux, packaging, PET * Local products * Patagonia * Organic trend Burgund, Piemonte, Rioja, * Pouch Provence *Ethically produced * High altitude *Biodynamic * Natural wine * Cans – from trend «Treating the *Local grape to category? world as if we varieties planned to stay» SUSTAINABILIY IN VINMONOPOLET SUPPLY CHAIN

Sustainable Ethics and workers production rights

Packaging • Code of Conduct • Amfori BSCI • Reducing GHG Freedom of emissions agriculture • association & winery operations • Reducing GHG emissions • Health • Water • Reduce energy use • Decent pay & • Biodiversity • Lightweight glass 420 gr working • Soil Health • Recycled raw material conditions • Certified sustainable • Made to be Recycled production • PET SELLING YOUR WINE IN NORWAY

• You will need an importer • Monopoly - direct business not allowed, with any producer • Your importer should keep you informed and updated about the monopoly’s tender plans, price calculation and import procedures • Restaurant/HoReCa market is separate from the monopoly. Importers deliver products to both markets. FURTHER INFORMATION

• www.vinmonopolet.no – bottom front page

CLICK HERE NEW PRODUCT LAUNCHES

Published 2 times per year: 1st. of December and 1st. of June VINMONOPOLET.NO