Selling wine to Systembolaget Ulf Sjödin MW, Head of Category Management, Systembolaget Agenda: • A brief history of alcohol monopolies • Fokus on Sweden and Systembolaget • Opportunities for local producers Leverantörsträff Lanseringsplan Leverantörsträff Lanseringsplan 2018:1 vin och sprit 2018:1 Kategoricheferna 2 maj 2017 Kategoricheferna 2 maj 2017 Historic background • Sweden, Norway and Finland are all part of the ”Vodka belt” • Binge drinking was a serious problem in the late 19th century • Very bad economic situation in all countries at that time • All three countries formed alcohol monopolies to deal with the drinking problems Why monopoly? • To reduce drinking problems –Limited availability –No profit driven interest in the retail tier • Historically an alternative to total prohibition • All countries with monopolies, except Sweden, have had a period of prohibition before the establishment of a monopoly Prohibition • Iceland 1915-1922 (beer until 1989) • Norway 1916-1927 • Finland 1919-1932 • Prince Edward Island 1900-1948 –Other provinces all had a period of prohibition • USA 1920-1933 • Russia/Soviet Union 1914-1925 • Hungary 1919 Some important monopolies today • Sweden • Norway • Finland • Iceland • Faroe Islands • Canada – Most states • USA – 17 control states with Utah and Pennsylvania full retail monopolies for wine and spirits (and beer in Utah) Systembolaget • First shop opened in 1850 • Monopoly since 1919 – Ration books were introduced • Today’s company formed in 1955 – Ration books abolished • Monopoly limited to retail since 1995 • Turnover 3.5 bill. Euros (MAT June 2018) • Sales volume 493 Mlitres (Wine 202 Mlitres) • 440 shops, only business represented in all Swedish counties • 5500 employees • Awarded ”Best Service” by ServiceScore 5 years in a row Four roads to our assortment • Fixed range – purchased through tender process, 5 to 440 shops • Ordering range – all products accepted, no guaranteed distribution • Local range – must be produced locally, 1 to 10 shops within 150 km from production and distribution from central warehouse • Exclusive range – high quality products, 1 to 55 shops Sales development locally produced still wine (litres/year) 20 000 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2012 2013 2014 2015 2016 2017 Where are Swedish wines sold? Region Litres 2017 Market share Premium Still Skåne län 9 967 1,2% Kalmar län 2 055 2,3% Stockholms län 1 740 0,1% Gotlands län 1 325 3,2% Västra Götalands län 1 070 0,1% Blekinge län 581 1,3% Östergötlands län 374 0,2% Hallands län 248 0,1% Jönköpings län 175 0,2% Uppsala län 164 0,1% Kronobergs län 120 0,2% Västmanlands län 119 0,1% Dalarnas län 95 0,1% Örebro län 84 0,1% Södermanlands län 83 0,1% Gävleborgs län 83 0,1% Värmlands län 68 0,0% Jämtlands län 44 0,0% Västerbottens län 44 0,0% Västernorrlands län 40 0,0% Norrbottens län 39 0,0% All still wines of Swedish origin. Source: Systembolaget Opportunities ! Organic Wines – market share by type 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 2012 2013 2014 2015 2016 2017 Wine Total Sparkling Rosé Red White Sparkling wines – sales development (litres) 18 000 000 16 000 000 14 000 000 12 000 000 10 000 000 8 000 000 6 000 000 4 000 000 2 000 000 0 2012 2013 2014 2015 2016 2017 [email protected].