The New Bag in Box Market An Expanding Market The Nordic Markets Catherine MENDOZA - Broker Ciatti Europe (UK, Holland, Scandinavian countries) • Bag-in-box packages are gaining more and more foothold in some of the largest wine drinking countries in North America and Europe. Main importers of BIB in 2017 by volumes (in thousands of hectoliters) The United States Boxed wine sales in the US have grown 8.5% over 12 months until August 17 Source Nielsen Red & White « cask » wine sales fell by 5% in the past 12 months • Facts & Figures about the Scandinavian countries Population - Sweden 9,9 Million inhabitans - Denmark 5,6 Million - Finland 5,5 Million - Norway 5,3 Million - Iceland 300 000 - Faroe Islands 50 000 Alcohol regulation • With the exception of Denmark, all the Nordic Countries have a state-owned off-premise retail acohol Monopoly • ATVR in Iceland • Systembolaget in Sweden • Vinmonopolet in Norway • Alko in Finland • Rùsdrekkasolu in the Faroe Islands • On a European level the Nordic countries stand out with high alcohol taxation Packaging - Glass bottles and Bag in Box are the most common types of packaging in the Nordic consumer markets - More than 50% of the wine on the Swedish and Norwegian market is packed in Bag in Box - On the Finnish market, 36% - 33% on the Danish market Shareof BIB of Share of red Share of white Share of wine Share of wine total wine sales, wine sold in BIB, wine sold in BIB, sold in PET sold on tetra % % ù bottles; % packs, % Alko 36 37 39 3,9 7,4 Systembolaget 57 58 57 1,8 6,3 Vinmonopolet 55 59 55 0,8 0,3 ATVR 47 50 45 - 2,9 Rùsderkkasolu 49 47 50 0 2,1 Source: Alko Wine Consumption In 2016 per liters of 100% alc per capita aged 15 and over • Sweden: 3,5 • Finland: 2,5 • Norway: 2,2 • Denmark: 4,2 • Iceland: 2,1 • Faroe Islands: 1,5 Source: Nordic Alochol Monopoly Companiesl • Why does boxed wine take up half the shelf space in Scandinavia LOWER HANDLING FEES PER LITER FOR BOXED WINES THAN FOR TRADITIONAL GLASS BOTTLED WINES .