Federation supports citizens' initiative – make 7.5% beer available in grocery stores

The Federation of the Brewing and Soft Drinks Industry supports a citizens' initiative that seeks to make maximum 7.5% alc/vol beer available in grocery stores. The initiative proposes an amendment to the Alcohol Act that will raise the alc/vol limit for fermented alcoholic beverages sold in non-Alko stores from 4.7 to 7.5 per cent.

The Federation of the Brewing and Soft Drinks Industry thinks that making strong beers and ciders available in grocery stores is a good idea, as it would increase competition in the industry and keep prices competitive in relation to travellers' private imports. Finland's beer tax is four times that of Estonia's, and the price difference is further increased by the alcohol monopoly's multipliers. Moving strong beer from Alko to grocery stores would boost domestic sales at the expense of travellers' private imports. Pellervo Economic Research PTT estimates that moving strong (Class IV) beer to grocery stores would halve travellers' private imports.

At best, the complete revision of the Alcohol Act is a great opportunity to increase competition in the industry and curb Estonian booze cruises. About 65 per cent of the strong (over 4.7% alc/vol) beer consumed in Finland is privately imported from abroad, mainly from Estonia or ships. This is more than three times the amount sold in Alko. An examination of total beer sales in Finland shows that only about 2 per cent is sold in Alko. Beer is a minor product for Alko.

“The citizens' initiative is worth supporting, as moving strong beer from Alko to grocery stores would increase state tax revenue, improve the product range available to customers, and enrich beer culture. Raising the limit is a good start. All beer belongs in the same stores as food,” says Elina Ussa, Managing Director of the Federation of the Brewing and Soft Drinks Industry.

The move would raise state tax revenue by an estimated EUR 50 million, as travellers' private imports would decline and a higher tax is levelled on Class IV beer than on milder Class III beer. Thanks to an increase in points of sale, product availability would improve and consumers would have more choice. Small breweries would be able to distribute their products more widely through grocery stores, and it is easier to get products stocked by grocery stores than by Alko.

“Beer is really booming in Europe at the moment. The number of breweries is growing and people are becoming increasingly aware of beer's many different styles and flavours. Other countries are hoping to steer consumption away from spirits and towards milder beverages. Finland should also favour milder beverages by making them available in grocery stores,” says Ussa.

The citizens' initiative was launched on Tuesday 5 April 2016 at 10 am – the anniversary of the repeal of Prohibition in Finland. Three beverage industry experts and entrepreneurs are behind the initiative: Petri Viglione, Pekka Kääriäinen and Heikki Kähkönen.They want to spur debate and decision-making on Finnish alcohol policy. They are aiming to collect at least 50,000 backers by the beginning of October 2016.

Any Finnish citizen with the right to vote can sign the citizens' initiative at www.kansalaisaloite.fi

Additional information:

The Federation of the Brewing and Soft Drinks Industry
Managing Director Elina Ussa, tel. +358 (0)45 269 7711
Communications Manager Outi Heikkinen, tel. +358 (0)50 370 8677

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