The Norwegian AlcoholmarketAlcoholmarket

Facts about NorwayFacts about NorwayOfficial name: The Kingdom of Norway

System of government: Constitutional monarchy Government

Government Capital: Oslo (500.000 inhabit.)

Population: 4 724 000 as of 1 January 2009Population: 4 724 000 as of 1 January 2009

Monetary unit: Norwegian kroner, NOKNorwegian kroner, NOK1 USD = NOK 6,5*1 EUR = NOK 8,0*1 GBP = NOK 9,78*1 GBP NOK 9,78*as of July 2010

Relations to EUMembership in European Economic Area (EEA) provides full access to the EU single market

AlcoholmarketAlcoholmarket

• Traditionally the Norwegian • Traditionally the Norwegian consumption of alcohol has been focused on beer and spirits.

• This trend has now changed and • This trend has now changed and Norway is moving towards a mature alcohol market with high consumer interest for new drinking trends.

• Even if the recorded consumption is lower than in most other European markets, the Norwegian consumer expenditure on alcohol consumer expenditure on alcohol products are the highest in Scandinavia.

• During the last years the market • During the last years the market for wine and spirits has been steadily growing.

T f l h l i N Turnover of alcohol in Norway (1 000 litres pure alcohol (1990-2009))

12 000

14,000

8 000

10,000

12,000

4 000

6,000

8,000 Beer

Wine

Spirits

2,000

4,000 Spirits

0

1990 2000 2008 2009

Source: Statistics Norway 2010

Annual sales of alcohol in Norway y(pr inhabitant aged 15 years and over in liters of pure alcohol (1990-2009))

6 00

7.00

4 00

5.00

6.00

Spirits

2 00

3.00

4.00 Spirits

Wine

Beer

1.00

2.00

0.001990 2000 2008 2009

Source: Statistics Norway 2010

Norwegian Consumers expenditure Norwegian Consumers expenditure on alcohol in millions NOK 2009

Exenditures

Spirits Wine Beer In total

Unrecorded• A significant amount of

alcohol escapes official registrationg

• In Norway, the unrecorded consumption is estimated to p25-30% of overall consumption

• The main sources for the unrecorded consumption:

– Border tradeS li– Smuggling

– Tax free

Retail Monopoly• The Norwegian

Vinmonopolet was established in 1922. The Norwegian Retail Monopoly

• The number of “Vinmonopol” outlets has steadily increased

Name: Vinmonopolet

Number of outlets 251

has steadily increased during the last years

• Following Norwegian

Monopoly’s privilege Retail of all alcoholic beverages with alcohol higher than 4,76 vol.pct

o o g o eg amembership in the EEA in the mid 90s , the state run alcohol system took a more

Maximum opening hours 09.00 – 18.00 (week)09.00 – 15.00 (Saturday)

I t t l Ysystem took a more liberal stance.

Internet sale: Yes

Homepage: www.vinmonopolet.no

Horecea• All hotels bars and restaurants • All hotels, bars and restaurants

need a license to sell alcoholic beverages. This is granted by Norwegian • This is granted by Norwegian municipals

• In 2010 there is 7300 t bli h t li d t establishments licensed to

serve alcohol in Norway.• About 6000 of these are

licensed to serve spirits.• In 2009 the sale of wine and

spirits at HORECA made aproxspirits at HORECA made aprox10 pct of domestic sale

Regulations• Norway has one of the most • Norway has one of the most

comprehensive regulations on sale and marketing of alcoholic beverages

Main alcohol regulations in Norway

Legal drinking age:g

• Norwegian alcohol policy is based upon:

Legal drinking age:• 18 y.o (all alcohol products below

22. vol. pct)• 20 y.o (all alcohol products above

22 vol. pct)– Retail monopoly– Ban on advertising – Taxes on alcohol

Advertising• Not allowed towards consumers

D i k d i li it

• As a EEA member Norwegian regulations needs to be in compliance with the regulations in

Drink – drive limit: • 0,02 % Blood alocohol concentration

(BAC)

p gthe EU– This has caused a slightly more liberal

alcohol policy during the last ten years

TaxesThe Norwegian taxes on alcohol 2010

Alcohol taxesS i it NOK 6 18 % lit• Spirits NOK 6,18 per % per litre

• Wine NOK 4,03 per % per litre

Environmental taxes• Glas and metal NOK 4,97 per unit• Plastic NOK 3,00 per unit• Cardboard NOK 1,24 per unit

Tax on disposable packaging: NOK • 1,02 per unit

l dd d ( )Value added tax (VAT):• All alcoholic beverages: 25 pct.

Contact VBF

• Post : P.O Box 2024 Vika, 0125 Oslo, Norway• E-mail: info@vbf no • E mail: info@vbf.no • Telephone: + 47 22 83 44 13• Fax: + 47 22 83 25 09• Fax: + 47 22 83 25 09• Homepage: www.vbf.no

THE ASSOCIATION OF NORWEGIAN WINE AND SPIRIT SUPPLIERS (VBF)THE ASSOCIATION OF NORWEGIAN WINE AND SPIRIT SUPPLIERS (VBF)www.vbf.no