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Norway

Profiled industries in this market

Wine to Norway

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(Last updated: 13 Jul 2007)

Trends and opportunities

The market

By tradition, alcohol policy in Norway is very restrictive for social reasons. The major tools used by the authorities include:

  • a ban on consumer advertising, and other restrictive marketing practices
  • a retail monopoly to restrict access
  • a relatively high price level by virtue of a severe tax on alcoholic beverages

The sole off-premise retailer in Norway for alcohol products (wines, liquors and beer with an alcohol percentage higher than 4.75 per cent) is Vinmonopolet, which was founded in 1922. Vinmonopolet is fully owned by the Norwegian state and operates about 200 outlets in Norway.


Norwegians have been steadily increasing their consumption of table wine over recent years. At the same time, consumption of distilled spirits and liquors, traditionally popular in Norway, have been declining.


In 2005, 53 million litres of wine were retailed off-premise in Norway, a six per cent increase over 2004. This translates into a per capita consumption of about 10 litres. By comparison, only 33 million litres were sold in 1997. This growth can be attributed to four factors:

  • slightly reduced taxes
  • consumers with increased purchasing power
  • new/additional retail outlets with a higher degree of self-service
  • increased interest in gastronomy and wine

The actual amount of wine consumed is considerably higher than these figures indicate due to on-premise sales, duty-free imports and other cross-border trade.


In 2005, sales of Australian wine in the off-trade in Norway grew to 4.2 million litres. Australia's market share grew to eight per cent. Australia started to export wine to Norway during the early-80's and has since been a regular supplier to the market.

Opportunities

In Norway there is a strong preference for red wines, which account for about 75 per cent of table wine sales.

Competitive environment

Major suppliers are France, Italy, Spain, Chile, Australia and Germany.

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Tariffs, regulations and customs

Norway has elected not to become a member of the European Union, therefore the Norwegian customs tariff has remained at nil.


Taxes on alcoholic beverages are high. For table wine - with alcohol content between seven per cent and 15 per cent by volume - the rate is NOK 3.61 per percentage point alcohol by volume and litre. This tax rate reflects a five per cent reduction since 1 January 2002.


(Source: Norwegian Ministry of Finance)

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Marketing your products and services

Market entry

The popularity of Australian wines is steadily growing. This is recognised by Vinmonopolet, which predicts that both volume and number of Australian wines are likely to increase.

 

Many of Australia’s wine exporters have already established contacts. To gain increased market share it is important to offer competitively priced products and to meet the demands of buyers. European wine suppliers have modernised their operations in recent years and are keen to regain market share lost to new world suppliers.


New market entrants will often find distinct interest in their products among the newly licensed importers. It must be kept in mind, however, that the vast majority of wine sales are made through the retail sector, and that an importer who is not a specialist supplier to the restaurant trade will need a listing with Vinmonopolet in order to achieve significant sales.


Austrade Copenhagen assists Australian wine exporting companies in the development of an appropriate Scandinavian market entry strategy and offers a range of tailored market entry services including:

  • Market overview - Scandinavian wine market information, the competitive environment, regulatory issues, pricing and trend analysis.
  • Partner search and qualification - identification and short-listing of qualified importers, or other potential partners depending on your needs/requirements, with profiling of identified companies and qualification of their interest.

Additional information on these services is available upon request. Unless otherwise stated, all services are offered on a fee for service basis in accordance with Austrade client service policy.

Distribution channels

The sole retail outlet (off-trade) for alcohol products (wines, liquors and beer with an alcohol percentage higher than 4.75 per cent) is Vinmonopolet, which was founded in 1922 as a shareholders' company with the sole right to import and sell liquor and wines in Norway.


The distribution trade in Norway underwent radical changes in 1996 after Norway, as a member of the European Economic Area (EEA), was obliged to abolish the import, wholesale and production monopolies previously held by Vinmonopolet. Vinmonopolet has now been restructured in such a way that it maintains a monopoly only with respect to off-premise retail sales. The company’s former production and wholesale divisions now operate as Arcus.


These arrangements have provided increased opportunities for marketing to restaurants, but in relation to the all-important over-the-counter trade, which accounts for about 85 per cent of all wine sales, the situation is unchanged - a listing is required with the retail monopoly.


There are over 100 licensed importers/wholesalers operating in the Norwegian market, of which most have established agreements with Vinmonopolet to supply wine for the retail trade. Vinmonopolet also maintains a sales-to-order list, and will accept individual orders. They can also arrange supply of a range of products not otherwise listed.


Vinmonopolet currently operates more than 200 retail outlets nation-wide, however, this number is continually increasing. Some attempts have been made in recent years to improve the atmosphere at Vinmonopolet’s boutiques, to increase the range of products available, and to better meet the wishes of customers. Self-service has been introduced in a number of outlets.


(Source: Vinmonopolet)

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Links and industry contacts

Wine–related resources

Vinmonopolet - www.vinmonopolet.no - link for information in English is found under the Vinmonopolet drop-down menu.

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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