Wine to Sweden

(Last updated: 13 Jul 2007)

Trends and opportunities

The market

Alcohol policy in Sweden is very restrictive for social and historical reasons. The major tools used by the authorities include a retail monopoly, Systembolaget, to restrict access and  a relatively high price level by virtue of a severe tax on alcoholic beverages.

The Swedes continue to increase their consumption of table wine slowly, but steadily.

Sales of red wine continue to increase, showing a rise of 12.2 per cent on the preceding year. Bag-in-box (cask) now accounts for 42 per cent of red wine sales. Spain still leads the field in red wine, with a market share of 29.6 per cent. Sales of Italian wine also rose, by 47.7 per cent, above all in the bag-in-box format. Italy now has a market share of 26 per cent. France increased its market share to 15.4 per cent and Chile to 11.6 per cent. USA, Bulgaria and Portugal, which were not competitive in the relatively new bag-in-box sector, lost share.

Sales of white wine rose by 8.4 per cent and bag-in-box accounted for the biggest increase. Germany continues to lose ground, in volume terms, -6.7 per cent, but remains the leading white wine supplier with 17 per cent of sales. Italy now also ranks second in white wine, with a share of 16.1 per cent. Sales were up 11.6 per cent and it is predicted that Italy will soon become market leader in white wine. Spain takes third place with 13.6 per cent of sales, followed by France with 12.4 per cent and Hungary with 11.8 per cent.

Tariffs, regulations and customs

Sweden became a member of the European Union (EU) in January 1995 and the EU import regime now applies. The customs tariff at €17.50 per 100 litres for most products corresponds to approximately A$0.26 per bottle.

Excise tax on wines with an alcohol content between 8.5 and 15 per cent is SEK 22.08 per litre. Value Added Tax is currently levied at 25 per cent.

The process of issuing wine import licenses in Sweden is managed by The National Institute of Public Health, a state agency under the Ministry of Health and Social Affairs. It is similar to national government health departments in many countries.

Industry standards

On April 29 2002, a law was passed by the European Commission laying down rules for the labelling of wine entering the European Union (EU). 

The most relevant Articles for Australian exporters are contained in Title V - Articles 34-37. Key changes appear to relate to the 'optional particulars' which may be placed on a label, ie. product type, colour, vintage year, vine varieties, awards, method of production, traditional terms, name of establishment and bottling information.

The Australian Wine and Brandy Corporation is currently analysing the impact of the new law and will produce an English guide to it in the near future.

(Source: Australian Wine and Brandy Corporation)

EU labels require all mandatory information with the exception of the importer’s name, address and lot number to be in the Same Field of Vision (SFV), ie. the customer must be able to view the mandatory information without turning the bottle. For wines described by geographical indication, the mandatory information required in the SFV is as follows:

• The geographical indication.
• The alcohol statement written as xx.x% vol. or alc. xx.x% vol. Minimum height: 3 millimetres for 750 millilitres.
• The volume statement. Only metric quantities permitted. Minimum height: 4 millimetres for 750 millilitres.
• Country of origin statement. Mandatory word is Australia – not Australian. This statement must be separate from any geographical indication claim and cannot be incorporated with a state or region.

For wines not described by a geographical indication, the mandatory information required in the SFV is as follows (remember, if no GI then no variety or vintage):

• The alcohol statement written as xx.x% vol. or alc. xx.x% vol. Minimum height: 3 millimetres for 750 millilitres.
• The volume statement. Minimum height: 4 millimetres for 750 millilitres.
• Country of origin statement. Mandatory word is Australia – not Australian.
• The word 'wine' is mandatory for products not described by geographic indication.

EU regulations specify that when detailing the importer on the label, the country must be indicated either by full name or by the postcode of the local administrative area. Therefore, a label for an Australian wine for sale in the UK could state the name of the importer and postal code only. In accordance with normal trading practices, if the importer then wanted to send a consignment to another EU member state, there would be no need to change the label.

(Source: AWEC)

Marketing your products and services

Market entry

Many of Australia’s wine exporters have established contacts in the market. To gain increased market share it is important to offer attractive pricing and conditions, or at least match competition, particularly from European suppliers that have modernised and are keen to regain sales lost to New World suppliers.

New market entrants will often find distinct interest amongst the newly licensed importers. Bear in mind, however, that an importer who is not a specialist supplier to the restaurant trade, needs a listing from the retail monopoly to achieve significant sales.

Distribution channels

Under Swedish law all alcoholic products are retailed through the government’s retail monopoly, Systembolaget. The monopoly on production, import, wholesale trade and export of alcoholic beverages ceased when Sweden became a member of the European Union, and since 1995 the market has been open.

Systembolaget does not have an import licence and therefore buys the products from licensed producers and importers, in order to supply over 400 stores and 550 local agencies. Today, about 300 companies have the right to import alcoholic beverages, and a major player is Vin & Sprit (V&S). V&S is owned by the Swedish State and is under the aegis of the Ministry of Finance.

It is estimated that over 80 per cent of wine consumed in Sweden is retailed through Systembolaget's shops. On-premise sales and cross-border trade accounts for the rest.

Links and industry contacts

Wine-related resources

National Institute of Public Health - www.fhi.se/default____1417.aspx
Systembolaget - www.systembolaget.se/english
The Swedish Spirit & Wine Suppliers - www.omsvl.nu