SWEDEN. State alcohol retailing monopoly Systembolaget has registered yet another monthly drop in sales. The company said in a statement that total alcohol sales for April were down by -7.7% year-on-year.
While spirits sales fell by -18.3%, wine and strong beer sales were both down by -4.9%.
Sales fell markedly in the counties of Vastra Gotland and Varmland, which are close to the border with Norway, and in Norrbotten county, near the border with Finland. Systembolaget attributed the decrease in sales to the lower alcohol excise duties in neighbouring countries.
In October last year Denmark cut its tax on alcohol by -47%. Finland followed suit, cutting alcohol tax by -40% at the beginning of last month. Both countries decided on the move due to the accession of Poland and the Baltic states to the EU. The former Eastern Bloc countries all have lower alcohol prices than Scandinavia and dating back to pre-abolition of intra-EU duty free the European Commission has been seeking to harmonise alcohol tax policy in all member states.
Earlier this week the Swedish government was reported to be considering reducing taxes on alcohol.
MORE ON NORDIC LIQUOR SALES
Historic day in duty free as Finns slash alcohol taxes – 01/03/04
Danish taxes lift Swedish ferry sales – 02/02/04
Cross border wine sales grow in Sweden – 18/07/03
Finland slashes spirits taxes: big retail repercussions – 04/09/03
