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Queueing for booze? COVID-19 threatens Sweden's state alcohol monopoly
Thomas Wintle
Sweden's state alcohol monopoly has been the only retailer in Sweden allowed to sell alcohol over 3.5 percent for home consumption since 1955. /CFP

Sweden's state alcohol monopoly has been the only retailer in Sweden allowed to sell alcohol over 3.5 percent for home consumption since 1955. /CFP

 

On Saturday afternoons in Stockholm, it's not uncommon to see hundreds of people queuing up in the cold, checking their watches and hoping they'll get into Systembolaget - Sweden's state alcohol monopoly - before it shuts at 3 p.m.

To outsiders, the concept may seem odd, but since 1955, Systembolaget's shops have been the only places in Sweden that are legally allowed to sell alcohol over 3.5 percent for home consumption. 

And with so many locals rushing to buy booze from the state-run stores before they close for the weekend, many Swedes consider waiting in the queues as a national pastime. But amid the pandemic, the desire to do so is wavering. 

 

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Companies outside the control of Sweden's government are offering alcohol via delivery apps. Wine retailers like Danish website Winefinder.se have seen their customer base skyrocket by 200 percent since the novel coronavirus struck. 

"COVID-19 has changed customer behaviour and opened a lot of people's eyes to other choices online," said the site's CEO, Magnus Ericsson. 

But Systembolaget isn't taking this lying down, having turned to the Swedish courts in a bid to stop foreign competitors undercutting what has traditionally been their exclusive market. 

Read more: Why Sweden is set to change its COVID-19 controls

 

On weekdays, drinkers have to get their last orders at Systembolaget's shops before 7 p.m. /Colm Fulton/Reuters

On weekdays, drinkers have to get their last orders at Systembolaget's shops before 7 p.m. /Colm Fulton/Reuters

 

Under the influence

Systembolaget was established in the Fifties following centuries of concern about alcohol abuse, with the express purpose of "limit[ing] the harmful effects of alcohol in society," according to the state monopoly. 

But one of the problems with the service - and the reason behind the long queues - is the limited number of shops. 

There are only 83 Systembolaget stores in Stockholm - one for every 12,000 of the city's nearly 1 million inhabitants, and on weekdays, drinkers have to get their last orders in before 7 p.m.

 

Around 75 percent of Swedes say they are happy with Systembolaget, according to pollster MedieAkademin. /Colm Fulton/Reuters

Around 75 percent of Swedes say they are happy with Systembolaget, according to pollster MedieAkademin. /Colm Fulton/Reuters

 

Up until the 1990s, people wanting to buy its alcohol had to wait at a kiosk as the state employees fetched their orders (It was believed that eye-contact would embarrass them enough into ordering less booze). 

Today, Swedes can fill their own shopping baskets, and can even buy online in most parts of the country. But because Systembolaget is banned from advertising its goods, it's been difficult to promote its website or its expanded home-delivery service.

Their online sales made up around just 2 percent of total sales last year, despite sales going up by 42 percent compared with 2019, and this has allowed their competitors to move in. 

Watch: Why Sweden has abandoned its COVID-19 strategy

 

Tippling the state monopoly

There have been previous challengers to Systembolaget's monopoly: In the 1970s, the embassy of the Democratic People's Republic of Korea set up a brief bootleg operation in Stockholm. It was quickly uncovered and led to the expulsion of several diplomats, but Systembolaget's more recent rivals are proving harder to suppress.

Since 2007, Swedes have been able to import alcohol from companies elsewhere in the European Union, allowing online retailers like Danish company Vivino to sell wine to their neighbours. 

Amid the pandemic, the online wine outlet, which has 50 million users globally, says Sweden is now one of its top 20 markets.

 

Wine retailers like Danish website Winefinder.se have seen their customer base skyrocket by 200 percent since the novel coronavirus struck. /CFP

Wine retailers like Danish website Winefinder.se have seen their customer base skyrocket by 200 percent since the novel coronavirus struck. /CFP

 

In response to its success, Systembolaget has taken the company to court, saying the app's marketing techniques are in breach of Sweden's alcohol advertising laws.

Vivino, which also operates as a wine rater, offers its users a personalized taste profile, showing customers a selection of wines "you didn't know you wanted." Systembolaget says this breaks the law that prohibits "intrusive" marketing of alcohol, a claim Vivino denies.

"Our attorneys look carefully at laws and we make sure to follow regulations wherever we are," said the company's founder Heini Zachariassen.

The state monopoly has also taken Danish website Winefinder.se to court, successfully proving last year that the wine retailer had broken the country's alcohol retail laws. However, the company is still trading as it appeals the decision.

And perhaps Systembolaget shouldn't be so concerned about their competitors: Around 75 percent of Swedes say they are still happy with the state monopoly, according to pollster MedieAkademin. 

"We Swedes are tolerant of this type of governance," said 28-year-old Fanny Hedenmo as she queued up outside one of Systembolaget's shops in Stockholm: "Though that could change fast, particularly if online shopping becomes the norm."

She adds: "Realising with horror that it's 6:50 on a Friday night and sprinting to the nearest Systembolaget ... that's just a part of life here."

Source(s): Reuters

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