2 | Market structure, trends
and developments
Beer classes in Sweden
In Sweden, beer is divided into 3 different classes
(skatteklasse or tax classes) according to their alcoholic
strength. There are different government rules for the sale
of each of the classes.
Category
Alcohol content (ABV)
Class I (light beer)
<2.3%
Class II (folk beer)
2.3 – 3.5%
Class III (strong beer)
>3.6%
Beer in 2008 Beer in 2009 Beer in 2010
Off-trade sales
80%
81%
81
On-trade sales
20%
19%
19
Sweden has one of the highest tax rates for beer in
Europe. Value added tax rates on light and folk beer are
10.7%, while the VAT for strong beer amounts to 20%.
Excise levels are also fairly high. For a litre of beer (5%
alcohol) the excise amounts to over 90 eurocents.
On beer up to 2.8% alcohol, no excise is required.
Due to the high taxation level, beer prices in Sweden are
fairly high compared with neighbouring countries. Because
of this, Swedish citizens import privately (or smuggle) beer
from neighbouring countries such as Denmark and Estonia
where beer is much cheaper.
Class I is regarded legally as non-alcoholic and there are
pretty well no restrictions on its sale and it can be obtained
in supermarkets and other retail outlets. Class II (known
as folköl) can be sold in supermarkets but only to those
over 18. Class III is only available in pubs, restaurants,
and Systembolagets
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, which is the name for state-owned
retail for alcohol sales. In the Sytembolaget shops, alcohol
can only be bought by those aged 20 and above. These
Systembolagets stock more than 300 types of beer from
different countries.
Exports
In 2010, 505,000 hectolitres of beer produced in Sweden
was exported
15
. The main export markets for Swedish
beer are Germany and the United Kingdom.
Imports
In 2010, 1.1 million hectolitres of beer was imported. The
main import markets are Denmark, the UK, and Germany.
Consumption patterns
The consumption of beer in Sweden remained stable
until 2008 and since then it has been declining. Beer is
mainly consumed at home and obtained in the off-trade
sector. Furthermore, there is an ongoing increase in
private beer import from Germany due to high taxes
on alcohol in Sweden.
Taxation
The government announced beer tax increases of 13%
by 2012
Marketing
Since January 2011 there have been stricter online
advertisement regulations
Distribution and retails
It has been proposed to the Government to allow
breweries to sell their products to consumers in limited
quantities at the brewery.
The most important threats the beer sector will
face in the upcoming years are :
Increase in beer tax rates.
Increased cross-border trade.
Changing drinking habits among young target groups.
Less beer consumption.
14
Systembolaget means literally system company and is the name of the state monopoly responsible for retailing alcohol.
These shops are the only outlets allowed to sell spirits, wine and full-strength beer (Class III) or any kind of alcoholic beverages.
Supermarkets and other shops cannot sell alcoholic beverage stronger than Class II beer.
15
Forecast, Canadean Global beer trends 2010.
The Contribution made by Beer to the European Economy
232