Farm sales set the wheels in motion – could lead to the collapse of Systembolaget

On June 5, 2024, there was a major shift in Nordic alcohol policy. In Finland, a new law was passed allowing the sale of fermented alcoholic beverages with up to 8% alcohol content in grocery stores, significantly raising the previous limit of 5.5%.

Coincidentally, on the same day, the Swedish government presented its proposal to allow farm sales of alcoholic beverages. The reform is set to take effect in 2025. At the press conference, Prime Minister Ulf Kristersson called the proposal a freedom reform.

– Entrepreneurs who have run their businesses with craftsmanship and passion but with limited opportunities to sell their products will now be able to do just that. Customers visiting vineyards and microbreweries will have the opportunity to take home a few bottles, and Swedish tourism will be able to grow, said the Prime Minister at the press conference. 

At the same press conference, the government also promised to safeguard both public health and Systembolaget’s monopoly.

Björn Trolldal, an alcohol researcher and investigator at the Swedish Council for Information on Alcohol and Other Drugs (CAN), views the latter as wishful thinking on the part of the government.

– I see a clear risk that Systembolaget’s monopoly will fall within a few years if farm sales are introduced.

Three reports – different results

The question of allowing farm sales of alcohol has been debated for a long time in Sweden. Three reports have been published: in 2009, 2010, and 2021. The first report concluded that farm sales should not be permitted, while the two later ones have been more supportive of the idea.

– I view the two previous reports as somewhat more objective and accurate, whereas the latest report, in my assessment, places more emphasis on the hope that farm sales will not clash with EU legislation, says Björn Trolldal.

The major question has always been how the Court of Justice of the European Union will view the Swedish alcohol monopoly if alcohol products that Systembolaget currently has exclusive rights to sell are also allowed to be sold elsewhere in the future. The situation is quite unique within the EU, as Sweden and Finland are the only member states with an alcohol monopoly.

– Those who advocate for farm sales in Sweden often point out that Finland has had an exception since joining the EU that permits farm sales of a limited number of products, such as berry wines, which are not considered to compete with other producers in Europe, says Björn Trolldal.

The Finnish example does not serve as a definitive precedent. Unlike Finland’s current legislation, Sweden plans to permit farm sales of a broader range of alcoholic beverages, though still on a limited scale.

The Swedish government believes that Systembolaget’s retail operations cannot be compared to farm sales retail. Emil Juslin, head of drug policy at the temperance society IOGT-NTO, disagrees with this interpretation. He argues that the government’s proposal infringes on EU rules regarding the free movement of goods.

– There is nothing legally distinguishing different types of retail to customers. As long as it involves the sale of sealed containers to consumers, it is considered retail. EU law also clearly states that limited exceptions to the EU non-discrimination rule are not accepted within the EU, says Emil Juslin. 

Even the farm producers themselves might be negatively affected by the reform

Never the less, during the first half of 2025, farm sales are likely to become a reality in Sweden. What happens next, according to alcohol researcher Björn Trolldal, remains somewhat uncertain. It may take some time before the legal process is fully completed in the EU and the future of Systembolaget’s monopoly is determined.

– Researchers largely agree that farm sales themselves would not pose a significant risk to public health due to the small volumes involved. The real threat lies in whether the monopoly is abolished.

Economically, farm sales could initially benefit small alcohol producers. However, this could quickly change if Sweden is forced to abolish its alcohol monopoly and large international alcohol producers would gain access to the Swedish market.

– We must remember that Systembolaget is the primary sales channel for many small alcohol producers. If Systembolaget’s monopoly falls, there is a risk that farm producers could lose the ability to sell through Systembolaget in the same way they do now, says Björn Trolldal.

An unspoken desire to dismantle Systembolaget

Alcohol researcher Björn Trolldal senses a political desire among certain actors to dismantle Systembolaget’s monopoly. However, this is not openly acknowledged in public, as Systembolaget remains quite popular among Swedes.

– I believe that some of those advocating for farm sales hope that Systembolaget’s monopoly will fall. However, openly stating this is not something that would win votes.

According to Björn Trolldal, previous research indicates that the impact on public health would be relatively significant if the Swedish alcohol market were to be liberalised.

– It is well established that increased availability in terms of opening hours, store density, and discounts boosts sales. And increased alcohol consumption means a rise in both alcohol-related diseases and deaths. We must also remember that alcohol-related problems do not only affect the individual but also those close to them.

This article is produced in collaboration between Alkohol & Narkotika and PopNAD. Read the article, in Swedish, here.