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{{Infobox_Company |company_name = Systembolaget
|company_logo = ]
|company_type = [List of Swedish government enterprises
|company_slogan =
|foundation =
|location = [Sweden
|key_people = [Olof Johansson, Chairman
[Anitra Steen, CEO
|num_employees = 4,397 (2005)
|products = [Alcoholic beverages
|revenue = {{profit--> 18,083 million [Swedish krona (2005)
|operating_income = {{profit--> 512 million [Swedish krona (2005)
|homepage =
http://www.systembolaget.se/ www.systembolaget.se
|industry = [Liquor
-->
Systembolaget (colloquially known as
systemet or
bolaget, the literal English translation is
The System Company) is a
government owned chain of liquor stores in
Sweden. It is the
Alcohol monopoly that contain more than 3.5% (by volume)
ethanol. Systembolaget also sells alcohol-free beverages. To buy alcoholic beverages at Systembolaget one has to be 20 years of age or older.
Governing laws
There are several laws and rules governing how Systembolaget stores operate, such as:
- All products, including beer cans and bottles, are sold individually (except some special orders where you might have to buy several beer cans and bottles which is usually equal to the minimum order).
- Discounts, such as "Buy 1, get 1 free" and "One can 1.50, two cans 2.50" type deals are prohibited.
- Although offers are prohibited local shop managers are still driven by sales, and keeps regularly consumed alcohol, such as beer furthest away from the entrance to encourage purchase of other liquors on the way to the cashier. Hence the contradiction when the Swedish government maintains that the monopoly is to lower the consumption and the damage alcohol does on the public health.
- No product may be favored, which in effect means that either all the beers have to be refrigeration, or none. The second option is employed.
In June 2007, a panel of European Union judges commented that restrictions on the import of alcohol were unjustified,{{cite web|url= http://news.bbc.co.uk/1/hi/business/6722393.stm|title= Swedish booze import ban 'wrong'|date= 5 June, [2007--> and not in the interest of the free movement of goods.
Domestic and international market
Serving a market of 9 million Swedes, Systembolaget is the world's largest buyer of wine and spirits from producers around the world. This has, ironically, led to the result that while Swedes from the southern part of the country often travel to Germany and other parts of Scandinavia to buy cheap beer and liquor, Germans and even people from France travel to the southernmost parts of Sweden to buy expensive bottles of wine at a price that would sometimes be considered a bargain at home. This results from the discounts that Systembolaget gets from its position in the global market, the fact that the Swedish tax on alcohol is based solely on the
amount of alcohol (and not as a percentage of the sales price) which greatly reduces the tax impact for expensive wine, and also the fact that Systembolaget has an identical Markup (business) (17% added) on every sold item.
Taxation and pricing
As other government owned monopolies within free trade areas, there are several aspects that govern the operation. All product selections and displays must be based on customer preferences, every producer and distributor must be handled the same way.All marketing activities must be for the company itself and its own services, never for an individual product. This is also the reason why all products are taxed on alcohol content, not on price, and that all products are sold with the same profit margin. This explains why a cheap
vodka can be seen as expensive, while an exclusive single malt
whisky can be seen as cheap, compared to international prices.
History
In 1766 the Monarch of Sweden, Adolf Fredrik, decided, after several unsuccessful attempts at regulating
alcoholic beverage consumption, to abolish all restrictions. This led to virtually every household making and selling alcohol. At the beginning of the 1800s, the Swedish people were supposed to have drunk an average of 45 litres of pure alcohol a year, from 175,000 distillers (most of them for household-production only), using tremendous amounts of grain and potatoes that otherwise would have been consumed as food.
In 1830, the first moderate drinking society was started in
Stockholm. A few decades later, the first complete Temperance movement was formed. Private gain from selling alcohol was hugely criticised by these groups, and this opinion was embraced by Physician and members of the
church. In
1850, alcohol began to be regulated by the state. In the city of Falun, a state organisation was created whose job it was to regulate all alcohol sales in the city and make sure it was being done responsibly.
In 1860, a bar was opened in
Gothenburg where the state had handpicked the employees and decided how the bar should be run. Anti-social or intoxicated people were to be excluded. This was where people both bought and drank their alcohol. This was also the year it became illegal to sell to people under the age of 18. Similar state-regulated
Bar (establishment) and stores began to open in other towns across the country, and they were hugely successful. Originally the profits were kept privately by the owners, but in
1870 the state decided all profits should go to the state.
During the World War I, alcohol was heavily
rationing. The state bars and stores started registering purchases. People were allowed only two litres of
Alcoholic beverage#Distilled beverages every three months, and beer was banned. After the war, the rationing continued. Sex, income, wealth and social status decided how much alcohol you were allowed to buy.
Unemployment people and married women were not allowed to buy anything at all. A Swedish referendum on prohibition in 1922 advised government not to issue total prohibition. The rationing system was very unpopular. When even the temperance movement protested against it (they felt it encouraged consumption), the government decided a new policy was needed.
In
1955 the rationing system was abolished, and people were allowed to start buying as much
alcohol as they wanted from Systembolaget stores. This led to increased consumption, so the government increased taxes heavily and made it the law that everyone had to show ID to get served. In 1965 it became legal for privately run stores to sell
beer up to 4.5% with an age limit of 18. This lasted for 12 years. After alcohol consumption – especially that of light beers – rose dramatically, the limit was lowered to 3.5%.
Corruption controversy
The corruption scandal first gained widespread media attention in the autumn of 2003, with Systembolaget issuing its first press release regarding the preliminary investigations on
7 November, 2003.{{cite web],
2003--> On [11 February,
2005, 77 managers of Systembolaget stores were charged with receiving bribes from suppliers, and one of the largest trials in modern Swedish history followed. 18 managers were found guilty on December 19, and then on February 23 another 15 managers were found guilty.{{cite web], 2005-->{{cite web|url= http://www.thelocal.se/article.php?ID=3123&date=20060223|title= Systembolaget managers fined|date= [23 February, 2005--> Systembolaget has also received criticism for keeping [Anitra Steen as CEO in spite of her marriage to then prime minister
Göran Persson.
Other alcoholic monopolies
References
See also
External links
- Systembolaget - Official site
Systembolaget - Wikipedia, the free encyclopedia
Systembolaget (Pronunciation (help · info); colloquially known as systemet "the system" or bolaget "the company"; literal English translation: the System Company) is a ...
Systembolaget - In English
This is Systembolaget Systembolaget, the Swedish Alcohol Retail Monopoly, exists for one reason only: To minimize alcohol-related problems by selling alcohol in a responsible way ...
Systembolaget - Hem
Systembolagets webbplats. Här kan du bl.a. söka i vårt sortiment, få tips om mat och dryck i kombination, söka butiker och öppettider, få information om alkohol ...
Systembolaget AB
Partrade International AB (Stig Heman) are opening up the swedish wine market with excellent quality from the best wine producers in Europe. -- Swedish Wine-importer ... ...
Systembolaget
Systembolaget
Systembolaget
Systembolaget - Wine Merchant Contact Details
Contact Information for, and services offered by, Systembolaget. One of more than 7500 wine merchants with price lists on Wine-Searcher.
Tag:shop=systembolaget - OpenStreetMap
This page was last modified 21:34, 29 July 2008. This page has been accessed 8 times. Content is available under Creative Commons Attribution-ShareAlike 2.0 license. Privacy policy ...
Systembolaget