Wine sales in Sweden are regulated by the state monopoly Systembolaget. Buyer Matilda Dannetun explains why the wineries included in the range have to fulfil the strictest sustainability standards in the world.
Matilda DannetunWith 23.1 litres per capita per year (source: Statista 2022), Sweden ranks 13th in the world for wine consumption. Alcohol was strictly regulated there for a long time and has been distributed by the state-owned company Systembolaget since 1955, which has a monopoly on the sale of alcoholic beverages containing more than 3.5 per cent alcohol by volume. Distribution takes place via 450 company-owned branches and is subject to strict regulations and high taxation. The background to the state monopoly was to curb alcoholism, which was once widespread in the country. In 2022, Systembolaget transferred around 32 million euros to the state coffers.
According to Matilda Dannetun, around 70 per cent of all alcohol consumed in Sweden is bought from Systembolaget and drunk at home. Eleven per cent was sold in restaurants and eight per cent was officially imported when travelling, while two per cent was ordered online from abroad. The catering trade is allowed to buy directly from importers and is obliged to pay high duties. I would like to know whether private imports are also subject to mandatory reporting. "They should be reported. We don't know whether this always happens. In monopoly countries, the state postal service is not allowed to transport alcohol, only private parcel services are. And understandably, they don't report what they deliver, because it's about data protection. And if retailers ship from a warehouse abroad, there is a certain chance that this will bypass the state."
Matilda Dannetun's job is to buy the wines in her producer countries (Africa, Asia, Austria, Luxembourg and Switzerland) that are needed in the respective categories. There is a standard range as a basis, which is available in many of the 450 shops in Sweden. In addition, there are different categories for which individual managers are responsible. "It's all about: How many of our shops do we want to supply with it? How much shelf space do we have? How many bottles of a wine can I get? This is analysed and determined on the basis of data. For example, if a certain Riesling from Austria is selling very well, we have to see if we can get a similar product to meet the demand. If a wine is no longer doing so well, we will re-evaluate it and look for a different style. At the moment, I'm already working on the range for autumn 2024. For example, my guideline is: 'Look for an Austrian Riesling in a defined style, it must not cost more than this amount,' explains Dannetun.
The product ranges are analysed in detail
SystembolagetThere is currently a lot of talk in Central Europe about non-alcoholic wines and Piwi varieties. Alternative wine styles such as orange wines are also receiving a lot of attention. In Sweden, orange wines are definitely becoming more popular, but not across the board: "Sometimes it's just a local phenomenon because some employees in certain shops are interested and talk to customers about it. Even in larger cities, customers may have encountered orange wines in restaurants, so there is a higher demand for them, especially from Georgia and France." Piwi wines, on the other hand, are not a big issue: "Piwis are exotic, few Swedes know them, although we are generally open to new things. But there is little interest at the moment." In contrast, natural wines, especially pet nats, are in high demand: "They are still selling very well."
How are the intense discussions elsewhere about the often very small-scale origin of wines and their protection perceived in Sweden? "The real wine nerds are interested - but they are a minority of our customers. It's more that they know: I like Grüner Veltliner. But not what DAC is and where the regions are. Rather: I like Sauvignon Blanc from New Zealand or Syrah from South Africa. People associate grape varieties or styles with countries. You probably know Bordeaux and Burgundy in France, Riesling in Germany, the Wachau and Kamptal regions in Austria and red wines from Burgenland. How steep the vineyards are, what specifications they have: That's only something for very few fans."
Sustainability aspects are much more important in Sweden than new varieties and individual vineyards - especially packaging such as cans, bag-in-boxes and lightweight bottles. "They account for the majority of our CO2 emissions, so that's where we start." The Nordic alcohol monopolies have presented an ambitious joint programme to combat climate change in 2022. Their goal: to reduce CO2 emissions to half the 2019 level by 2030. To achieve this, all phases of production, packaging and distribution will be analysed. Wineries repeatedly complain that the monopolies demand a lot from them, but do not make any purchase commitments and leave the financial burden to the bottlers. As a result, the criteria of many tenders can only be met by a few large bottlers.
Matilda Dannetun confirms that she often hears this accusation. "They say that we make it difficult for some producers to be included in our range. Today, there are many more producers than 20 years ago who send us samples for tenders. But: sustainability is important to Swedish wine buyers. That is why we are increasingly emphasising these aspects. The business opportunities for wineries that opt for heavier glass bottles will be smaller in the future."
No one should underestimate how important environmental protection is for Sweden!
Systembolaget has introduced a combination of different criteria for sustainability standards and certificates. "There are so many labels and the topic is so broad," says Dannetun, explaining her approach: "It's not enough to just ask for a label. A lighter bottle alone does not automatically mean less environmental impact - if it comes from China, for example, and we don't know under what conditions it was produced there. We would have to hold intensive discussions with our suppliers to find out these details, which would of course take a lot of time." Systembolaget has its own department that analyses such certifications. The employees are very familiar with the country-specific differences. Which certificate a producer favours is irrelevant: "We always look at the facts."
There are also wineries that work sustainably but do not prioritise obtaining a certificate. "We motivate our suppliers to take this part very seriously and to document precise traceability, because a certificate is important for our customers. Many of our senior managers not only take this issue seriously, but personally. They endeavour to attend meetings with producers themselves. No one should underestimate how important environmental protection is for Swedes."
Farm-gate sales from the increasing number of wineries are becoming more likely
sbov.seThis raises the question of how the still small but rapidly growing wine industry in Sweden is developing. Matilda tells us that sales of the local wine range have grown over the last five years. The local wines do not have to go through the same authorisation process as the products for the normal range. However, new Swedish wines are also submitted through tenders and then checked and tasted before they go on sale. They are part of a range of local products that should be readily available to consumers, but often only in shops near the winery so that producers can deliver directly. The route via the central warehouse could be too expensive for suppliers. At present, Swedish winegrowers are not yet allowed to sell directly "from the farm", but this could soon change. There are now hundreds of small producers of wine, fruit wines, beer and spirits. Until now, their products had to be ordered through Systembolaget. But since Sweden encourages its small producers to sell directly, and since origin is very important to Sweden, there is currently a debate as to whether it should soon be possible to buy directly from the winegrowers. This is a political decision.
Unsurprisingly, environmental concerns are the biggest trend for Swedish consumers. Alternative packaging and local and environmentally friendly production are becoming increasingly important. Swedes would also be prepared to pay more for this. Systembolaget also sees the search for grape varieties that are more drought-resistant or require fewer pesticides as a major topic for the future. Matilda Dannetun explains the Swedish approach to this: "Climate change has become part of everyday life. We are thinking much more about the future and what we can contribute to it. Especially when it comes to wine. After all, wine is a product that we have high expectations of."