2017 Launch plan

Aim for the stars

Just a few years ago our goal would have

looked a little bit too ambitious.

Systembolaget had decided that by 2020,

organic products would account for 10 per

cent of our market share across the entire

range. That didn’t just look like an ambitious

goal - it was an ambitious goal.

But something happened. Our customers

increasingly began to opt for organic products,

and if the trend continues, we will have

achieved our goal for 2020 already by the time

you read this text.

Therefore we would like to use this front page

to thank you, our suppliers and producers, for

the quotes, conversions and forecasts, which

has enabled us to meet this increased demand

from our customers.

You have to aim for the stars if you’re going

to reach the treetops. But sometimes, you

actually make it all the way. So, which is our

next star to aim for?

Contents

2017 Launch plan 2

Trends and our outside world 3

Our customers 6

Our offering 8

Our product range 11

Sustainability 19

Suppliers and quality 21

Systembolaget’s sales 25

Contact details 41

2017 Launch plan

2017 Launch plan

There’s a lot happening at Systembolaget right

now. We’re just about to open our second

store with a new store concept just outside

Stockholm, and will be launching the new

concept in several other stores in the autumn.

We’re focusing particularly on beer right now

and are introducing a new way of

communicating different beer styles. We are

also testing a larger range of beers in some of

our stores.

The biggest change that you, as a supplier, will

notice is the introduction of new listing times,

with a shift from 6-month guaranteed listing

times to 9-month ones for new items in the

fixed range. This change will give more time

for you, as a supplier, to plan your intake the

same time as we avoid for our customers to

find that products are out of stock.

Organic and ethically labelled new products

will have a 12-month guaranteed listing time.

This will improve the planning opportunities

for a category that has to undergo an extensive

certification process and where a long-term

approach is vital. The extended listing time for

organic and ethical products will also apply to

items bought in upon request where

certification was not a requirement. All of the

items certified on the launch date will be

subject to the same terms, irrespective of the

request for tender format.

Listing times is not, however, the only area

that our sustainability work has addressed.

You will find a number of impending launches

designed to meet a range of responsibility

goals in this launch plan. We are also working

hard behind the scenes on things that might

not be as apparent externally but which we

hope will be of interest to you, as a supplier.

We are, for example, continuing to work

towards our goal of reducing the

environmental impact of our packaging, and

are expanding the scope of our producer audits

to ensure that the products displayed on our

shelves have been produced sustainably. By

the time you read this, we will have carried out

more such visits in 2016 than we did in any

previous year.

We are also introducing an updated surcharge

model in time for the first launch in March

2017 that ties in more closely with our direct

costs. Information on the new model will be

provided on the Supplier Portal, where there

will also be an Excel file for calculating the

input price under the new model. Please note

that all of the prices quoted in the launch plan

are estimates in accordance with the new

surcharge model and that the quotes you

submit should include the input price

calculated in accordance with the new model.

As usual the actual launch plan offers a wide

variety of both the obvious and the surprising.

It is a distillate of our customers’ expectations,

social trends, worldwide availability, and our

own strategic plan. Getting it right demands a

high level of expertise, and every single line of

this plan is based on discussions, meetings,

and visits carried out by our category

managers and purchasing staff during the year.

Holding more of these discussions will allow

us to aim even higher, so all of us here at

Systembolaget would like to invite all of you

out there to share your thoughts with us!

The Category Managers, pp.

Ulf Sjödin

MW

Unit Manager, Product Range

Trends and our outside world

Systembolaget monitors the outside world

continuously in order to ensure that our range

is adapted in line with current trends and

changes in customer demand. We

consequently monitor both overall changes in

consumption patterns and, more specifically,

developments in customer demand. The

overall changes in society in terms of

demographics, technology and the economy –

the macro trends – have an impact on the

trends which, in turn, bring about changes in

our customers’ behaviour.

Macro trends Demographics

Sweden’s population is continuing to age.

Almost half of the section of the population

that is aged 20 or above is aged 50 plus, and

almost 2 million are over 65 years of age.

There are, however, also almost 2.2 million

Swedes who are under the age of 20, and

109,000 of them will reach 20 this year. One

difference between Sweden and the majority

of other countries is that almost 38 per cent of

households are single-person households with

no children, making them the most common

household type in Sweden.

Geography

We live in a world in which information,

capital, goods, services and people are moving

with increasing ease between one country and

another. This trend means that things that

happen outside of our national borders impact

us more quickly than ever before, whether we

are talking about economic fluctuations, news

or competition. We are also seeing a parallel

and relatively rapid relocation of people from

rural areas to towns and cities. But even if the

population is aging in many local authority

areas, and many young people are moving to

the big cities, the immigration that we have

seen in recent years means that population

growth is now spread across virtually every

area in Sweden, with 20 out of 21 counties and

8 out of every 10 local authority area reporting

population increases in the first half of 2015.

Technology

Over 90 per cent of the population now has

access to broadband, over two thirds have

access to the Internet via a smart phone, and

62 per cent do so every day. The emergence of

smart phones has affected the purchasing

patterns of many people in that wherever they

may be, they can now either research a

purchase or even make one. This trend has, in

turn, increased people’s expectations when it

comes to interactions, whatever the channel

they choose. More and more of people’s total

media usage per day – almost 6 ½ hours – is

being spent in digital channels, and this has

resulted in an increasingly rapid shift in

advertising investments from print media to

digital media. This will, in turn, probably

impact customer behaviour and may possibly

give rise to new purchasing patterns.

Retail

More and more people are increasingly opting

to shop online and more and more consumers

feel secure buying goods from websites.

Companies are also developing their offering

in the form of more flexible payment solutions

and greater freedom of choice when it comes

to deliveries. The percentage of people who

buy foodstuffs online is still modest, although

the share has grown strongly over the past

year, and this trend can be expected to

continue now that several of the major retail

chains have begun to move seriously into this

market.

Economy

The Swedish economy is performing relatively

strongly, but the international economic

climate has resulted in a degree of uncertainty

about the future performance of Swedish

exports. Private and public sector consumption

have been maintained in recent years by

means of an expansive financial policy and

low interest rates and this will probably

continue over the next few years. Private

consumption levels are, in other words,

expected to remain high due to low interest

rates, non-existent inflation, and an improved

labour market, even if changes in deductibility

entitlement, new rules for ROT (Repairs,

Conversion, Extension) and RUT (Cleaning,

Maintenance and Laundry) work deductions,

and tax increases may affect individuals’

scope for economic action.

Trends It is clear that several of this year’s trends are

actually an extension of those in previous

years. A couple of them have become

stronger, while others have levelled off.

Several of the trends have become interlinked

and been boosted by each other, and should be

regarded a single trend, rather than individual

phenomena. We focus on driving forces and

trends that affect Sweden and Swedes,

although several of them are also prevalent

elsewhere in the world.

Enhanced, easier living Convenience

Time pressure and the need to constantly

juggle commitments are a common aspect of

everyday living nowadays for many people.

And as a result, more and more people are

looking for the sort of services that can make

their lives easier, services that free up valuable

time – time that can be used to do something

they really want to do. It might be anything

from the ability to order groceries on line for

delivery to their homes or collection in store,

employing domestic services, and eating out

or ordering takeaway food, to TV services that

offer a smorgasbord of options which allow

people to watch whatever they want, wherever

and whenever they want.

Accessibility

The increasing use of digital technology is

creating new opportunities to reach out to

people. More and more companies are

investing in interacting with their customers

via a combination of physical and digital

interfaces. Even if there are restrictions on

when the goods can be delivered, the e-

commerce channel is open 24/7, and this

coupled with the fact that much of the retail

sector has expanded its opening hours, not

least in out-of-town shopping malls, has

resulted in a change in customers’

expectations of accessibility.

Health and well-being Health

The health trend is, admittedly, strong, but it is

also dualistic. Half of the adult population say

that they exercise at least once a week, while

one third state that they exercise, at a

maximum, a few times a year. Entries to

competitions that form part of classic Swedish

sporting events are breaking new records, and

books on health and well-being top the best-

seller lists, at the same time as we are

becoming ever heavier. Almost half of all

Swedes nowadays are overweight and many

are consuming alcohol at levels that put them

in the danger zone for abuse.

Pleasure

The pleasure-seeking trend is continuing and

many people are keen to treat themselves to

something that makes them feel good about

themselves and about life. Whether it is time

spent alone with a book, an experience in the

form of a trip somewhere, or a good meal.

Whether the things to which they treat

themselves are something locally produced,

exotic, exclusive, new or “hot” is a matter of

opportunity, taste and preference.

Environment & Ethics Pure and genuine

In an increasingly complex world, in which we

are exposed on a daily basis to a seemingly

endless number of messages and variety of

choices, more and more people are looking for

something local, something genuine. Demand

for locally produced food and drink is

increasing, as is the case for products with

local roots or which clearly signal where and

how they were produced. Discussions of food

quality and sustainability, both in the media

and everyday life, have helped bring about an

explosive increase in demand for organic

foodstuffs, and this trend is expected to

continue.

Transparency

“Something somebody doesn’t want printed,”

is a classic definition of news. The increased

use of new technology has resulted in news

spreading more quickly, not least through

social media. Companies are subjected to ever

more stringent examination and the increase in

corporate transparency is offering consumers

greater potential for “voting with their

wallets”. And as a result, it is becoming

increasingly important that companies act

responsibly, that there are no internal

improprieties in their conduct, and that they

work towards the creation of a better, more

sustainable world.

Meaningfulness

Finally, it should be noted that more and more

people – both customers and employees – are

placing greater and greater importance on

companies’ operations being fundamentally

based on sound values. There is a desire not

just to make money but to be part of building a

better world. As part of the desire to live up to

people’s expectations, therefore, we are now

seeing a shift from measuring success purely

in monetary terms to beginning to measure

success in terms of the positive influence a

company has on people and the environment.

Individual and image Guidance

As product ranges grow, as media noise

increases, as we make more and more choices

on a daily basis and are confronted by more

and more complex offerings, the need for

guidance increases. This is where interactions

become critical. Customers do not want to feel

like a face in the crowd: they want to be seen,

to have a personal interaction and to have easy

access to guidance whenever and wherever

they need it.

Belonging

Many people view their consumption and their

consumer behaviour as a means of creating or

strengthening an identity and a sense of

belonging. They want to show who they are by

the things with which they fill their lives – and

food and drink are one method they use. Their

choices are a means of demonstrating that they

are active and health-conscious, that they

appreciate local things, that they are

gourmands who yearn for exclusivity, or that

they are part of the growing group of people

who want to live pleasurable, healthy and

exciting lives, but not at someone else’s

expense.

Our customers

We monitor our customers in a variety of

different ways. The biggest recurring survey is

the Customer Satisfaction Index (CSI), which

comprises interviews with over 30,000

customers who are recruited from all of our

stores, several times a year. Since its

introduction in 2001, CSI has enabled us to

monitor our customers’ purchasing patterns,

trends in different customer groups, and their

opinions of Systembolaget and specific aspects

of our offering. The survey is conducted in

collaboration with the CFI Group and the 2015

are presented, in brief, below.

A survey in which a representative selection of

3,000 men and women aged between 18 and 74

are interviewed has also been conducted

annually since 2013. The aim of the survey is to

track attitudes to alcohol’s role in society and

the way in which Systembolaget and our work is

perceived. The survey is conducted in

collaboration with YouGov.

Systembolaget’s subsidiary company, IQ, has,

since 2010, conducted an annual survey

responded to by a representative selection of

2,000 men and women aged 16 and above. The

results of this survey give us our alcohol index –

a combined measurement of people’s attitudes

to alcohol in different situations. The survey is

conducted in collaboration with Novus.

A variety of quantitative and qualitative studies

that examine particular issues in depth are also

conducted by Systembolaget.

It is important not only that we track overall

consumer trends and the ways in which

customer demand is developing, but that we also

understand why consumption patterns are

changing. To this end, Systembolaget

implemented a customer segmentation in 2013,

which helps us track development in discrete

customer groups. The customer segmentation

comprises seven different customer groups and

one group that does not consume alcohol at all.

2015 Customer Satisfaction Index We have been conducting surveys of how

satisfied our customers are since 2001 by means

of our NKI. The questionnaire asks about a

number of different quality areas such as Range

& selection, the In-store experience, Attitudes

towards Systembolaget and our social

responsibility, and the Staff-customer

interaction and staff expertise.

In 2015, the NKI rose by just over one point to a

new record high index figure of 83.9 (2014:

82.6). The ratings for all three of the areas with

the biggest impact on the NKI trend rose from

2014 levels. Attitudes towards Systembolaget’s

social responsibility improved for comparable

questions by almost 3 points to an index figure

of 81. Store staff ratings for comparable

questions rose by 2 points to an index figure of

91, and Range and selection ratings rise by 2

points to an index figure of 80.

The NKI for Range & selection is one of the

areas with the greatest potential for further

boosting the overall CSI rating. One of the

contributory factors to the increase in 2015 was

that the CSI for all categories increased. Red

wine (81), Spirits (81), Alcohol-free (81) and

White wine (81) are the categories most widely

perceived as meeting customers’ requirements.

The first three categories have all increased by 1

point in this respect, while White wine increased

by 2 points. Beer (78) and Other wines (80) also

increased by 2 points, while Cider & mixed

drinks (79) increased by 1 point.

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NKI Store staff Range and selection

The biggest increases – with 4 points each –

were noted for organic (78) and ethical products

(75). These categories are still at a lower level

than the range as a whole, but we have

demonstrated that we are more than able to live

up to our customers’ higher expectations when it

comes to organic and ethical products.

Our index for how well our News in the range

meets our customers’ expectations has

previously been lower than for the range as a

whole. So in 2013, we introduced a new way of

launching new items, and this may have helped

bring about the 1 point increase in the index for

this category to 74 in 2013. This rising trend has

continued and in 2015, the index rose by a

further 2 points to its current level of 77.

And finally, our customers’ perceptions of

Range quality has improved by 2 points from an

already very high level and now has an index of

88.

Our offering

Systembolaget is mandated by the state to sell

spirits, wine and strong beer responsibly

through its retail monopoly, to provide a high

quality service, and to provide information on

the harmful effects of alcohol.

We develop our offering, in line with our

mandate and with the goal of increasing

customer satisfaction. Events in the outside

world naturally affect how we make our

selection and improve our range onwards.

Our customers come to Systembolaget to buy

alcoholic drinks and our range is, therefore, a

key component of our offering. But the way in

which our customers perceive our range is

influenced, to a very considerable extent, by

the store’s look and layout, by the digital

interaction sites, and by the personnel who

interact with the customers. All of these

factors affect our offering to our customers.

Product range Systembolaget shall offer every single

customer in Sweden a product range that

meets their requirements, and we do this by

providing both a broad and a deep product

range. There are, of course, limits on the

amount of items that can physically be stored

in store, but the entire range is available for

order via our website; Systembolaget.se.

Customers can, in addition, order drinks for

collection from agents and we also offer home

delivery in some areas.

Systembolaget’s product range strategy is an

internal steering document for our product

range work. The product range strategy, which

is revised annually, defines guidelines, goals

and activities for the entire product range. It

shall enable us to build a product range that

meets as many customer requirements as

possible but which is also influenced by our

long-term objectives when it comes to product

range development.

Our product range is characterised by quality

and we structure it in a brand-neutral, non-

discriminatory and transparent way. Our goal

is to work in partnership with our suppliers to

continue developing a product range that

increases customer satisfaction, a product

range that helps reduce the harmful effects of

alcohol, and which helps us create impressive

customer interactions. We want to enable our

customers to make more informed choices

with regard to their alcohol consumption and

for our range to offer alternatives, such as low

alcohol drinks, drinks in smaller packaging,

and to show consideration for those who either

cannot or do not want to drink alcohol.

New store concept We are developing a new store concept that is

designed to highlight the product range and

our expertise – and thereby enhancing the

customer experience. In the autumn of 2015,

we opened our first trial store for the new

concept in Uppsala. The second trial store will

open just outside Stockholm, in the summer of

2016. After which work will continue, in a

variety of ways, on rolling the concept out

across the rest of the store network.

Beer styles

Interest in beer has exploded in Sweden in

recent years, and we are consequently placing

particular emphasis on developing our beer

range. In June 2016, beer will be divided into

several different beer styles, making it easier

for customers to search and find what they are

looking for in our product range. Dividing

beer into styles will enable us to improve

navigation and create clearer communication.

Sustainability

Sustainability is important to us, both to our

mandate and in terms of our customers’

expectations. The product range shall reflect

the fact that we pay particular attention to

sustainability, whether in the form of organic

and ethically labelled products, or articles with

a lower or zero alcohol content, or of light-

weight glass bottles or other forms of

packaging that have a small environmental

footprint.

Digitalisation Customers are making increasing use of our

digital interfaces, both to prepare purchases

and to order products. In 2015, our website

Systembolaget.se had 30 million visits, and

2015 also saw mobile phones overtake

computers as the most common means of

accessing our website. The “Search & Find”

app has been downloaded 1.7 million times

and has noted 7.5 million visits.

We are seeing differences in the ways in

which different user groups use the

systembolaget.se website and, in particular,

differences in when they use it. Their visits

may include everything from short visits that

primarily involve locating a particular product

or finding out about opening hours, to

considerably longer visits where customers are

looking for in-depth information on specific

products and categories. This type of visit

sometimes then results in them placing orders

with stores or agents, or for home delivery.

We intend to continue our work on developing

the website and our apps. Both to meet the

requirements that already exist amongst our

customers with a more extensive interest in

Systembolaget and our products, and those

who are looking for rapid information and a

smooth visit.

“We have seen an enormous growth in

our customers’ interest in beer and their

knowledge of the subject in recent years. And

we have to improve the way in which we meet

their requirements. Customers nowadays

aren’t looking for an ale or a lager: they’re

much more specific in their searches and

choices, for example an IPA, APA or pilsner.”

How will the different beer styles be

labelled in store?

“The current division into ale, lager, wheat

beer, and so on will be refined. We will, for

example, be dividing the ale into three sub-

categories on the shelves – British-US,

Belgian and German. There will then be a

number of different styles within these sub-

categories, for example IPA, barley wine,

Belgian blonde beer, dubbel, etc. The styles

(IPA, APA etc.) will be displayed on the shelf

labels. The spontaneous fermentation and

specialist beer categories will disappear and

will be replaced by sour beer and other beer.”

And how will the beers be displayed

digitally?

“As of 1 June 2016, customers will be able,

via systembolaget.se and the app, to search for

and refine their way to different beer styles.

There will also be information about the

different styles for those customers who want

to learn more about them. There will be a total

of around 60 different searchable beer styles

on systembolaget.se.”

How did you come up with 60 different

styles? “There are lot of different styles in the world

of beer, so to make the whole thing

comprehensible, we have assumed that a given

style must be generally recognised. The

individual styles must also differ in terms of

taste. We’ve spoken to beer writers and

bloggers, an external beer expert and

suppliers, to make sure we have our facts

straight, and we’ve carried out customer tests

of the concept – and had some very positive

feedback indeed!”

Märta Kuylenstierna

Category Manager

Why are we

introducing

beer styles?

Our product rangeNew listing times for 2016 New listing times will apply for new launches

in the fixed range, as of 1 March 2016. The

guaranteed listing time for new products will

be extended from six months to nine and, at

the same time, the evaluation periods will be

postponed so that the start date for these

periods always coincides with a product range

change.

Existing dates for product range changes will

not be affected by the change. Fixed range

launches will continue to take place in March,

June, September and December, and the

phasing in and out of existing ranges will also

take place in conjunction with the launches.

An item labelled as ethical and/or organic in

conjunction with the launch, in accordance

with the guidelines laid down in our General

Purchasing Terms & Conditions, Appendix 2,

will be given a guaranteed listing time of 12

months and evaluation will hence not occur

until six months have passed since its launch.

The listing time of an item bought in in

response to a request for tender and where

there is no requirement for an organic or

ethical certification may be extended if, from

the first day it went on sale, the item possessed

one of these properties and the supplier is able

to produce a valid certificate thereof no later

than one week before the launch.

The change will not only mean longer listing

times for new items, it will also improve your

ability, as a supplier, to plan your intake. The

time from launch to the start of the evaluation

process will be extended from one month to

three, by which time sales will probably have

stabilised and the risk of “out of stock” periods

caused by unexpectedly high sales will be

reduced and hence not affect the evaluation

process. The time from evaluation to product

range change will also be extended from

approximately 8 weeks to 12, which means

there is more time for forecasting and less of a

risk of selling out or of oversupply,

particularly for products with a remote country

of origin.

Evaluation periods and product range changes

coincide under the new model, and an item

will consequently have the sale retail price

throughout the evaluation period. This will

clarify the segment to which a product belongs

during the evaluation period and will ensure a

fairer ranking of items for which prices

change.

See Appendices 4, 7 and 10 of our General

Purchasing Terms & Conditions for further

information about the change.

New timeline for new items (non-organic/ethical) in the fixed range.

New timeline for organic/ethical new items in the fixed range.

Three types of product range Systembolaget’s product range is divided into

three different sections, each of which has

different terms and preconditions, namely the

Fixed range, the Available-for-order range,

and the Temporary range.

Fixed range The fixed range shall satisfy the demands of

the majority of Systembolaget’s customers and

account for the majority of Systembolaget’s

sales. The range composition offers security,

continuity and a long-term approach, and also

ensures both breadth and depth. The allocation

of the product range to every single store is

carried out in a brand-neutral way and is based

on customer demand. The range’s six different

mixes enable Systembolaget to ensure that

every individual store meets this objective.

The fixed range is renewed four times a year,

in March, June, September and December.

Available-for-order range The Available-for-order range includes items

that can be ordered from the drinks suppliers’

stocks. The items can be ordered in stores,

from agents, and from our website –

systembolaget.se. Items in the available-for-

order range that prove to be very popular with

the customers may qualify for the fixed range.

Tenders for the available-for-order range are

submitted on a rolling basis and new products

are released every month.

Temporary range Temporary range – Exclusive

The items in the Temporary range – Exclusive

(TSE) are primarily aimed at customers with a

substantial interest in new items. The range

comprises products with very limited

availability and which are in a relatively high

price bracket. The items are bought in via

rolling requests for tender without blind

tasting as agreed with the respective

purchasers. The purchasers make the selection

based on the needs of the range, customer

demand, and the product’s reputation.

The stores that carry the exclusive range are

selected on the basis of customer demand in

the respective categories. This ensures that

there are some stores that are only allocated

beer, and others that only carry spirits or

wines. Customers can identify the exclusive

range in our stores by means of the Limited

consignment label.

The items can also be ordered via our website.

The most exclusive products of all are not kept

in stock at any of our stores and are only

available for reservation via systembolaget.se

– so-called “online launches”. Interest in

ordering exclusive products via

systembolaget.se is substantial and growing.

Temporary range – Seasonal

The items in the Temporary Range – Seasonal

(TSS) comprises the items that are available

for a very limited period of time because these

products are linked to a particular festive

season or tradition. We carry them for the

duration of the season and if customer demand

is high, they may return the following year.

Examples include seasonal beer for Easter and

Christmas, Oktoberfest beer and mulled wine.

Temporary range – Local and Small-scale

The items in the Temporary range – Local and

Small-scale (TSLS) are craft products and are

carried in up to 10 stores within a radius of

150 km of the producer. The items are

available in limited volumes and can also,

depending on availability, be ordered from the

systembolaget.se website.

A Private import service is offered for

customers who require help with ordering an

item not listed in any of Systembolaget’s

regular ranges.

Roles We have divided the range into different

product range roles in order to ensure that we

meet our customers’ requirements. The roles

are Profile, Cutting Edge, Volume, Service

and Seasonal. The strategies for the product

categories in general are complemented by a

variety of strategies for the respective roles,

and the product range’s structure, launch level,

pricing, subsidy limit, and product placement

will, for example, be adapted in line with the

segments’ respective roles.

Volume product range role The Volume product role represents the

majority of Systembolaget’s sales, in terms of

both number of litres and value. Most of our

customers buy from the volume role, and the

quality/price ratio is the most important

parameter for them. Systembolaget wishes,

therefore, to offer a wide Volume range that is

perceived as offering value for money. The

Volume product range role includes pale lager

in cans, wines costing from SEK 0 to SEK 79,

and white spirits. In this product range role,

we endeavour to include as many flavour

types as possible and focus strongly on

responsibility issues, in that it is not possible

to make a positive impact if parts of our

biggest volume range are not ethically

certified or organic.

Profile product range role The Profile product range role shall represent

both breadth and depth, and the customer

should perceive it as both inspirational and

responsible. The range should also encourage

customers who want to learn more about our

products and this is an area in which we are

keen to show off different manufacturing

methods, raw materials, and the importance of

countries of origin to the drinks’ flavour

profiles. We want to be the best in the world in

this sphere. The Profile product range role

includes ale, pale lager in bottles, malt

whiskies, and wine priced between SEK 80

and SEK 120. We are looking for both breadth

and depth in the Profile product range role and

it is in this role that we usually launch the

unusual countries of origin and the uncommon

flavour profiles, but also where we launch the

famous grape types from the world’s best-

known wine-producing areas.

Cutting edge product range role We offer a Cutting Edge range to satisfy the

most demanding customers. This role shall

generate depth and primarily represent classic

and recognised countries or regions of origin

and product types. The Cutting Edge product

range role also includes the exclusive ranges

of beer, spirits and wines that are renewed

continuously through frequent launches of

small, limited offerings on systembolaget.se

and in selected stores. The vast majority of our

launches occur within the Cutting Edge

product range role. The Cutting Edge product

range role is the narrowest of our roles and

one where the focus is on expertise and depth,

rather than on breadth.

Service product range role The categories within the Service product role

ensure that our customers are offered a wide

selection of products in relatively low demand.

This means that the range is, in most cases,

narrow and shallow. The segments within the

Service product range role are, at the same

time, very important to those customers who

want them and the demand for breadth is

considerable in that the drinks included in this

role are usually difficult to replace with other

items. We will continue to have a low launch

level in this role.

Seasonal product range role The Seasonal product range role is designed to

ensure that Systembolaget can offer its

customers an up-to-date and seasonally

adjusted range of products. The range shall be

broad, and shall generate excitement and

inspiration in stores.

The stores’ product ranges Systembolaget has a nationwide retail network

comprising approximately 430 stores and just

under 500 agents. The entire range can,

furthermore, be ordered via systembolaget.se

for delivery to stores, and in some areas, for

home delivery.

Product range distribution Our product range is based on individual

stores’ customer demand in order to ensure

that we provide the right products for the right

customers. There are six different store

groupings with similar demand in the stores in

each of the respective groups. Each store

grouping receives a product range mix tailored

to customer demand in these specific stores,

irrespective of the size of the store or its

geographic location. The product range mixes

differ with regard to composition in terms both

of volume, profile and cutting edge products,

and of the number of wine, spirits and beer

categories. Each store grouping contains

different sized stores. The smaller stores will

receive fewer items than the larger ones, but

the product range mix is the same.

Product range mix 1 The customers who shop in store grouping 1

outlets demand more beer than the average,

and primarily pale lager in cans. Wine is

mainly sold in boxes and tetra packaging, and

white spirits dominate spirit sales. The product

range mix comprises all product groups and

product range roles, but emphasises beer and

the product range role, volume.

Approximately 130 stores receive Product

range mix 1 and they account for 17 per cent

of Systembolaget’s sales. The stores are

largely small or medium-sized ones and are

located in smaller towns nationwide such as

Vimmerby, Bromölla, and Söderhamn. Some

of the suburbs of Stockholm and Gothenburg

are also represented in this grouping, as are a

number of stores on the Norwegian border.

Product range mix 2 The customers who shop in store grouping 2

outlets have an average demand for wine,

spirits and beer. The 160 or so stores with this

product range mix account for 45 per cent of

Systembolaget’s sales. The stores are located

in small and medium-sized towns and in the

suburbs of Stockholm and Gothenburg, and

the majority of these stores are in the southern

and central areas of Sweden. Jakobsberg,

Köping, A6 in Jönköping and Hudiksvall are

all examples of this type of store.

Product range mix 3 The customers at outlets in store grouping 3

buy more wine than customers in the average

stores. The main demand is for boxed, tetra

packaged and bottled wine priced up to SEK

79. Just under 40 stores have this product

range mix and they account for 11 per cent of

Systembolaget’s sales. The stores are located

in Skåne, along the west coast, and in the area

around Stockholm. Vallentuna, Varberg, and

Ystad are all examples of this type of store.

Product range mix 4 The product range mix contains an average

breakdown of beer, wine and spirits, with the

emphasis on items from ranges that are part of

the Profile and Cutting Edge Product range

roles. The customers in these stores buy more

expensive and more exclusive items. There is

a higher level of customer demand for

specialist beers, champagne, other sparkling

wines and bottled wine, irrespective of price

band. Demand for the spirits product group is

slightly lower than the average but higher

when it comes to digestifs, malt whisky and

drinks and cocktails. Just under 20 stores have

product range mix 4 and they account for 7 per

cent of Systembolaget’s sales. The stores are

primarily located in larger towns and some

medium-sized ones. Rotebro in Stockholm,

Karl Johansgatan in Gothenburg, and Åre are

all examples of this type of store.

Product range mix 5 Demand for wine is higher amongst customers

in store grouping 5 outlets than in the average

store and demand for products from segments

in the Product range roles Profile and Cutting

Edge is high. The customers buy more than

the average amount of champagne, other

sparkling wines and bottled wine priced at

over SEK 80. Demand for beer is lower than

average but higher in the specialist beer and

pale bottled beer segments. This product range

mix meets a customer requirement for more

expensive and more exclusive products and

the focus is on wine.

The product range mix can be found in just

over 70 stores that account for 19 per cent of

sales. The stores are located in and around

Stockholm, Malmö and Gothenburg, but can

also be found in smaller towns in southern

Sweden. Nova in Lund, Hansacompagniet in

Malmö and Grebbestad are all examples of

this type of store.

Product range mix 6 Our two food halls in Stockholm have product

range mix 6 and their customers buy wine,

first and foremost. The stores are in a setting

in which food is sold and breadth is

consequently important in order to be able to

offer drinks to go with all types of food. The

special circumstances generated by very small

stores with over the counter sales also affect

the composition of the range. The spirits sold

are, by and large, exclusive.

The stores’ locally popular range In addition to the range determined by the

product range mixes, every store also carries a

local range that is unique to each individual

store. These items are chosen to complement

and broaden the store’s range in light of local

demand.

Product range changes Systembolaget has four product range changes

per year in the stores: on 1st March, 1st June,

1st September and 1st December. The

updating of the range is based on an evaluation

of the items’ sales over a 3-month period. The

evaluation includes all items from the fixed

range and the available-for-order range. The

category managers draw up a product mix plan

for each store grouping, based on customer

demand and Systembolaget’s product range

strategy ahead of each evaluation period. The

product mix plan describes the number of

items in each segment to be carried in a given

store size and store grouping.

New items in the fixed product range are also

launched in conjunction with every product

range change. The new items to be launched

are presented in the launch plan, which is

published twice yearly.

Evaluation The evaluations for items in the fixed range

and the available-for order range are based on

the volume of sales for the item and on

Systembolaget’s trading margin. All items are

also assigned a volume correction and a

weighting factor for market coverage that

yields the item’s points total. A ranking list

per segment is then drawn up, comparing

items in the same segment with one another.

The item with the highest points total receives

the most widespread distribution within that

segment.

Product range mixes 1-3 and 4-6 are evaluated

separately, resulting in two ranking lists per

segment. This breakdown improves our ability

to meet differences in customer demand within

the various store groupings.

Categories and segments

WineRed wine White wine Rosé wine Apéritif and Dessert wine

Red wine bottle at least 50 cl White wine bottle at least 50 cl Rosé wine bottle at least 50 cl Apéritif

Red wine (0-59) White wine (0-59) Rosé wine (0-79) Sherry/Montilla

Red wine (60-69) White wine (60-69) Rosé wine (80-99) Extra dry Vermouth

Red wine (70-79) White wine (70-79) Rosé wine (100-..) Vermouth

Red wine (80-89) White wine (80-89) Rosé wine carton at least 50 cl Apéritif

Red wine (90-99) White wine (90-99) Rosé wine box (0-66.6 SEK/L) Sake

Red wine (100-119) White wine (100-119) Rosé wine (66.7-..SEK/L) Dry fruit wine

Red wine (120-149) White wine (120-149) Rosé wine not box or bottle Other wine, segment

Red wine (150-199) White wine (150-199) Rosé wine small packaging Dessert wine

Red wine (200-299) White wine (200-399) Rosé wine small bottles Sweet white wine

Red wine (300-499) White wine (400-) Sweet white wine small bottles

Red wine (500-..) White wine large bottles Sparkling wine Red port

Red wine large bottles White wine carton at least 50 cl Sparkling wine at least 50 cl White port

Red wine carton at least 50 cl White wine not box or bottle >= 500ml Champagne (0-249) Sweet sherry/Montilla

Red wine not box or bottle >= 500ml White wine box >= 3L (0-56.6 SEK/L) Champagne (250-399) Madeira

Red wine box >= 3L (0-66.6 SEK/L) White wine box >= 3L (56.7-66.6 SEK/L) Champagne (400-..) Flavoured wine

Red wine box >= 3L (66.7-..SEK/L) White wine box >= 3L (66.7-..SEK/L) Champagne large bottles Sweet fruit wine

Red wine box 1.5-2L White wine box 1.5-2L Sparkling wine (0-79) Other dessert wine

Red wine small packaging White wine small packaging Sparkling wine (80-119) Mulled wine

Red wine small bottles (0-186.6 SEK/L) White wine small bottles (0-186.6 SEK/L) Sparkling wine (120-..) Mulled wine

Red wine small bottles (186.7-..SEK/L) White wine small bottles (186.7-..SEK/L) Sparkling wine large bottles Mulled wine small bottles

Red wine not box or bottle < 500ml White wine not box or bottle < 500ml Sweet sparkling wine

Rosé Champagne

Sparkling rosé (0-79)

Sparkling rosé (80-..)

Other sparkling wine

Sparkling wine small bottles

Champagne small bottles

Sparkling wine small bottles

Sweet sparkling wine small bottles

Rosé Champagne small bottles

Sparkling rosé small bottles

Beer, cider & mixed drinksLager Speciality beer Cider & mixed drinks

Pale lager Ale Seasonal beer Dry cider

Lager can <= 355ml (<6.0%) <17 Ale can (..-5.9%) Easter beer Dry/medium-dry cider bottle

Lager can <= 355ml (<6.0%) >=17 Ale bottle (..-5.9%) Oktoberfest Dry/medium-dry cider bottle 750ml >=

Lager can > 355ml (<6.0%) Ale extra strong (6.0%-..) Christmas beer lager SEK 49

Lager extra strong can (6.0%-..) Porter & stout Christmas beer speciality beer Dry/medium-dry cider can

Lager btl <=355ml & <17/>355ml Porter/stout bottle/can (..-5.9%) Sweet cider & mixed drinks

& <20 (<6.0%) Porter/stout extra strong (6.0%-..) Medium-sweet/sweet cider bottle

Lager btl <=355ml & >=17/>355ml Wheat beer Medium-sweet/sweet cider can

& >=20 (<6.0%) Wheat beer bottle/can Mixed drinks

Lager extra strong bottle (6.0%-..) Other beer Cider in other packaging

Other lager Other beer Seasonal cider & mixed drinks

Dark lager Other ale/porter/stout Christmas cider & mixed drinks

Dark lager can Beer bottle 750ml >= SEK 49

Dark lager bottle Spontaneous fermentation beer

SpiritsDrinks & cocktails Whisky Digestif Liqueur

Unspiced distilled spirits Blended whisky Cognac Chocolate, coffee & nut liqueur

Unspiced distilled spirits Blended Scotch whisky Cognac Chocolate, coffee & nut liqueur

Unspiced distilled spirits small bottles Blended Scotch whisky small bottles Cognac small bottles Cream & egg liqueur

Flavoured vodka Canadian whisky Brandy Cream & egg liqueur

Flavoured vodka Canadian whisky small bottles Other brandy Fruit & berry liqueur

Gin American whiskey Other brandy small bottles Fruit & berry liqueur

Gin American whiskey small bottles Calvados Swedish punch

Gin small bottles Irish whiskey Calvados Swedish punch

White rum Irish whiskey small bottles Grappa/marc Other liqueur

White rum Other whisky Grappa/marc Other liqueurs

White rum small bottles Malt whisky Dark rum Other liqueurs small bottles

Flavoured rum Scotch malt whisky <= 18 years old Dark rum

Flavoured rum Scotch malt whisky <= 18 years old Dark rum small bottles Schnapps

Tequila small bottles Bitters Spiced distilled spirits

Tequila Scotch malt whisky > 18 years old Bitters Spiced distilled spirits

Anise Other malt whisky Other spirits Spiced distilled spirits small bottles

Anise Other spirits, segment

Ready-mixed drinks Seasonal spirits

Ready-mixed drinks Seasonal spirits

Ready-mixed drinks small packaging Christmas spirits

Alcohol-freeAlcohol-free

Alcohol-free wine

Alcohol-free beer

Alcohol-free cider & must

Water

Alcohol-free other

SustainabilityOur customers expect us to take responsibility

for the products we sell and for everyone

affected by our operations. Parliament and the

Government also impose stringent demands on

state-owned companies and expect them to act

as a role model in the context of their

sustainability work. In 2014, Systembolaget

introduced a new sustainability strategy that

covers the period until 2020. The strategy

comprises our mandate, working conditions,

human rights, the environment, anti-corruption

work, and equal opportunities.

Sustainability strategy Systembolaget exists in order to help reduce

the harmful effects of alcohol, but we don’t

just care about the health of our customers and

their friends and family – we are also keen to

take responsibility for and to promote decent

conditions for both people and the

environment throughout the chain. Our

sustainability strategy is based on our mandate

– to reduce the harmful effects of alcohol –

and comprises three primary areas.

Sustainable choices for the customer We aim to create awareness on the part of the

customer of the risks associated with alcohol

and to offer expertise, information and

inspiration that enables the customer to make

informed choices on everything from lower

alcohol content beverages and climate-friendly

packaging, to organic or ethically certified

products.

Sustainable supply chain The products we sell, together with the

materials and services we buy in, shall be

manufactured under conditions that are

favourable for both people and the

environment.

Sustainable operations We conduct operations that use resources in an

intelligent way, that enable personal

development for our employees, and in which

everyone is afforded the same opportunities

for development at work with regard both to

their conditions of employment and their other

working conditions.

Climate-friendly packaging Packaging accounts for one third of

Systembolaget’s climate footprint and single

use glass bottles are responsible by far for the

biggest footprint of all packaging types. We all

have a responsibility to the future and to make

every effort to reduce our collective climate

footprint. None of us can do everything, but

we can all do something. And one way in

which you, as a supplier can do something is

to choose a lighter weight packaging for your

products. Our surveys show that customers’

awareness of climate change issues is growing

and with that growth comes an increasing

expectation of being able to make sustainable

choices in our stores.

Systembolaget has previously submitted a

proposal designed to bring about a changeover

to lighter weight bottles. The proposed model

would entail the payment of a modest fee if

the weight of the glass bottle exceeds certain

weight thresholds. Systembolaget has decided

to put the introduction of the fee-based model

on hold until the first quarter of 2017 and, in

the meanwhile, to conduct an in-depth

dialogue with you, our suppliers, and other

stakeholders on how we achieve a changeover

to lighter weight glass bottles.

Systembolaget’s is still very keen to promote a

changeover to lighter weight glass bottles and

in 2016, our customers will be given

additional information – both in store and on

our website – on packaging and

Systembolaget’s environmental work.

Ill. 3: Supplementary message. Lighter weight glass bottles will be on the shelves from March 2016.

Strength through unity Systembolaget has been working with the

alcohol monopolies in Finland, Norway,

Iceland and the Faeroes since 2009 with the

aim of ensuring a socially and environmentally

sustainable supplier chain. The core of this

work is provided by the BSCI (Business for

Social Compliance Initiatives) Code of

Conduct which has formed part of

Systembolaget’s general purchasing terms and

conditions since 2012. This means that all of

the suppliers that make up Systembolaget’s

supply chain are responsible for ensuring that

both their own operations, and those of any

subcontractors, comply with the requirements

of the Code of Conduct. Systembolaget offers

both suppliers and producers training courses

and provides tools and support via our supplier

portal. We also organise complementary third

party audits of the producers.

Updated Code of Conduct BSCI updated its Code of Conduct in January

2014 and throughout 2014, we worked on

developing monitoring tools and support

documents. Systembolaget implemented the

updated Code as an appendix to the general

purchasing terms and conditions from 15 May

2015.

The biggest changes in the updated Code of

Conduct entail clearer requirements that:

The Code of Conduct’s content is

disseminated by BSCI members to

subcontractors at every stage in the chain;

Systematic work is conducted to ensure

that the Code’s principles govern the

structure of the operations;

Risks of an inability to comply with the

Code’s requirements are mapped;

Every single operation and activity is

conducted with due regard for human

rights and labour law throughout the

supply chain;

Systematic work is conducted in order to

register and work with action plans with

regard to the Code’s requirements, for

example with regard to zero tolerance for

child labour, forced labour, and life-

threatening situations at work;

Complaint systems that not only

incorporate employees’ ability to submit

complaints to employers anonymously, but

also include communities in the locations

in which the operations are based, be set

up.

Producer audits Systembolaget carried out 11 follow-up audits

of producers in South Africa and Chile in

2015 based on the older version of the Code of

Conduct (BSCI 1.0), and 7 audits in Italy and

Mexico based on the updated Code of Conduct

(BSCI 2.0).

All of the producers whose audits revealed

significant or less critical deviations from the

Code of Conduct have worked actively with

measures to rectify the deviations noted and

Systembolaget has consequently not, to date,

needed to terminate any agreements or impose

any temporary sanctions.

A detailed analysis of all producers behind all

of the items in the fixed range, based on the

“at risk” countries identified by

Systembolaget, was carried out in the autumn

of 2015. The aim was to map which producers

had already been audited by BSCI or other

equivalent initiatives. This mapping work

forms the basis for the comprehensive audit

programme launched for 2016 and which will

resulted in a substantial increase in the number

of audits carried out. The audits are now based

on risk, not just, as was previously the case, on

volume.

Suppliers and quality

Quality Supplier Index Since March 2012, all of Systembolaget’s

suppliers have received performance-related

information, based on a number of key ratios

with a direct or indirect effect on customer

value. The key ratios measured include

delivery date precision, product availability

and quality complaints. Every supplier can

now monitor their key ratios and the factors

behind each ratio via a control card in the

Supplier Portal. The system is designed to

enable and incentivise the improvement both

of the supplier’s internal processes, and here at

Systembolaget when it comes to identifying

smarter solutions in the common interfaces –

all with the overall aim of generating

increased customer value. Every supplier also

receives a weighted total key ratio that

summarises the component elements.

The Quality Supplier Index (QSI) is a strategic

key ratio for Systembolaget. The QSI

comprises the average of the weighted total

key ratios of the 100 suppliers who account for

the biggest share of sales at Systembolaget. In

2015, these suppliers accounted for 97.8 per

cent of Systembolaget’s total sales. The QSI in

2015 was 94.9, corresponding to an

improvement over 2014, when the CSI was

94.1. Systembolaget’s objective in making the

QSI a strategic key ratio that is monitored

continuously is to generate better

preconditions for increased customer value in

partnership with our suppliers.

Quality assurance Quality assurance of Systembolaget’s products

is one of the fundamentals of our operations

when it comes to ensuring that we offer our

customers the best possible products. The

quality assurance work includes sensoric

analyses and laboratory analyses of both our

existing range and new launches. The

complaints team monitors products regularly

returned by customers and provides feedback

to you, our suppliers, offering the scope for

remedial action and improvement. We place

considerable focus on ensuring that the

product that ends up on the shelf in

conjunction with new launches in our fixed

range corresponds to the product tendered. But

it is equally important that you, the supplier,

can rest assured that the product that won the

request for tender tasting is the product that

ends up on the shelves in our stores. This work

is described below.

Request for tender in the fixed range When the requests for tender are issued, we

grade risk on a scale from A (greatest risk) to

C (lowest risk). Experience has shown us that

the biggest risk of quality discrepancies occurs

in conjunction with requests for large volumes

and with the requests that are prioritised from

a CSR perspective.

Sample testing The product that wins the blind tasting is sent

to our laboratory for analysis and the

remaining tender samples are saved for

subsequent comparative checks. For tenders

A-risk rated requests for tender, the winner is

asked to submit additional tender samples. The

second and third place tender samples from

the blind tasting are also saved to ensure we

can carry out the same checks if the winning

tender proves unable to deliver the agreed

quality.

Quality follow-ups on site at producers A document entitled Guarantee of Supply

shall be appended to the tender in conjunction

with A-risk rated requests for tender. Quality

follow-up checks are sometimes also

conducted on site at producers that involve us

visiting the stated producer of the product that

won the blind tasting, often within a couple of

days of the tasting having been carried out.

During the visit, we check the information

provided in the tender to ensure its accuracy.

The party identified in the Guarantee of

Time to tender?

Remember that … … the persons or person who own(s) the wine at

the time when the tender is submitted must be

specified as the producer and/or subcontractor in

the tender.

… the volumes and the quality that you specify in

the tender must be checked by the specified

producer or producers (either in that they own it

themselves or in that they have an agreement that

gives them control over volumes).

… additional information on how to complete

tender forms is provided both in the introductory

text of the request for tender and in a “crib” in the

Supplier portal.

… the tender sample shall be physically,

chemically and biologically stable and shall be

treated in the same way as the end product will be

treated, for example the filtration must be the

same.

… the tender sample must be mixed in the same

proportions and with the same

components/ingredients as the end product. The

product delivered in conjunction with the launch

must correspond, both chemically and sensorically,

to the tender sample.

Supply document as the producer shall be the

same party as the producer specified in the

tender.

The company that submits the tender to

Systembolaget must also be identified in the

document as the supplier. During the visit, we

also check that the volumes specified in the

Guarantee of Supply document exist and that

they correspond, quality-wise, with the sample

purchased. The supplier guarantees that all of

the information contained in their tender

(including the Guarantee of Supply)

corresponds to actual circumstances. If this

proves not to be the case, the tender in

question may be cancelled.

Launch sampling The launch samples are primarily used to

generate taste descriptions and to present the

product to journalists, but are also used as a

checkpoint en route to the launch. During

launch sampling, we check that the labelling

complies with applicable requirements and

send samples to the laboratory for chemical

analysis. The extra tender samples submitted

for A-risk rated launches are used for

comparison testing purposes. The supplier will

be contacted at this stage if the sampling or the

chemical analysis reveals inconsistencies in

relation to the tender samples.

Sampling when sales begin Sampling when sales begin constitutes the

formal approval of the launch and involves

comparing the tender samples saved with

samples taken directly from our stores.

Triangle testing is always conducted for A-risk

rated launches. If the triangle test indicates

inconsistencies, additional comparative quality

testing is carried out. If this testing yields a

negative result, the wines are sent for chemical

analysis. Triangle tests and comparative

quality tests are also conducted for B- and C-

risk rated launches when the comparison

tasting indicates inconsistencies.

If an inconsistency is identified, we contact the

supplier. If the inconsistency is judged to be

significant, we return the product. The supplier

is then, in accordance with the purchasing

terms, given the opportunity to deliver a

product with the agreed quality. If this is not

possible, Systembolaget will cancel the

purchasing agreement for the product in

question.

Post-launch controls Post-launch controls take place after 3 months

and entail comparing the product most

recently delivered to the stores against the

products taken from the stores in conjunction

with sampling when sales begin. The A-risk

rated items are checked in this way every four

weeks in a test that includes chemical

analyses.

Amended purchasing process pilot The purchasing process entails win suppliers

and producers tying up volumes from the time

when the tender is submitted to the point when

they receive notification of Systembolaget’s

intent to purchase. In the spring of 2016,

Systembolaget reviewed its purchasing

process in cooperation with its suppliers with a

view to reducing the length of this period. The

change is also intended to improve the results

of quality follow-ups on site at producers,

because after 5 years and ca. 40 completed

quality follow-ups, we are still identifying

significant deviations that mean the product

cannot be launched on a far too regular basis.

The change means that the length of time for

which the supplier guarantees that the wine

exists – from tender to the purchase of a

product – will be shorted. The pilot will be

conducted for a limited period of time for A-

risk rated wines, and will then be evaluated.

A tender, a pilot version of the Guarantee of

Supply document, and a tender sample must all

be submitted simultaneously for the A-risk

rated wines requested for the fixed range for

launch in May and June 2017. The pilot version

of the Guarantee of Supply document will

include, over and above the usual information, a

full specification of the location of all of the

components of the tendered wine.

Systembolaget will then have 10 working days

to review the tender and the tender sample and,

where relevant, to carry out a quality follow-up

visit to the producer.

This will reduce substantially the amount of

time for which the producer is obliged to tie up

volumes of wine. The goal, thereby, is to raise

the quality of the wines launched and to ensure

that fewer wines are stopped in the quality

follow-up process ahead of the launch. The

pilot period may be extended until September

and December 2017. You can find

comprehensive information on the pilot in the

Supplier portal.

Genuine customer demand When the product range model was

introduced in 2013, our customers gained

greater influence over the composition of

the product range. A number of

improvements were introduced in order to

increase the extent to which the most in

demand products were carried on our

shelves. Shorter periods between

evaluations and the introduction of

weighting factors made the product range

more dynamic. Locally popular ranges and

division of the stores in line with two

discrete customer requirements improved

accuracy of our product range selection.

The system also posed a number of

challenges. Following customer demand in

a more systematic way meant that we were

also increasingly exposed to increases in

sales that were not due to genuine

customer demand.

We have, therefore, instructed our in-store

personnel to report an incident if they

suspect that an in-store purchase may be at

the behest of a supplier or producer. This

type of incident has, unfortunately,

increased over the past year. Most of the

incidents proved, upon investigation, to

have perfectly natural explanations, but in

some cases we were able to demonstrate

instances of support buying. To clarify

what we mean by support buying you will

find a few examples below.

Systembolaget’s product range shall reflect

actual customer demand and only those

sales that demonstrate actual customer

demand shall be taken into account. All

purchases made by suppliers or which are

deemed to have been commissioned by a

supplier or made on the supplier’s behalf

must, therefore, be reported immediately

to [email protected].

This applies to, for example, the following

types of purchase:

Product samples used by the supplier’s

sales personnel in the course of their

work

Purchases by the actual supplier that are

not for private consumption and which

will, rather, be used in some way in the

course of the suppliers’ operations

Purchases by event organisers where a

supplier or producer is sponsoring the

event in some way

Purchases by advertising agencies, PR

firms, or survey companies that can be

linked to engagements by a supplier

Purchases by private individuals who

receive some form of remuneration from

a supplier or a supplier’s partner where

the remuneration can be linked to the

purchase.

The duty to report also applies to

purchases made by someone who has a

community of interest with the supplier if

the purchase is made to increase sales or to

influence the evaluation process, and the

supplier is aware of or should have been

aware of this purchase.

Orders placed by suppliers as

commissioned by a customer, for example

in conjunction with trade fairs and tastings,

are generally not permitted. All orders

must be placed by the customer themselves

via our website or through contacts with

stores. The reporting allows us to assess

whether the purchase has influence the

store distribution and evaluation process,

and to make adjustments in accordance

with the reported volumes. Confirmed

instances of support buying not reported

by a supplier can result in substantial

points deductions, a reduction in store

coverage or, in a worst-case scenario, the

delisting of the item.

Appendix 7, point 7.2.6 and Appendix 15,

point 15.7 of our General Purchasing

Terms and Conditions contains more

information about out points calculation

process and the duty to report.

mailto:[email protected]

Systembolaget’s sales in 2015

Systembolaget’s sales in 2015 totalled 471

million litres with a retail value of SEK 34.3

billion. Volumes remained largely unchanged

since 2014, differing only by 262,000 litres,

which corresponds to an increase of less than 1

promille. The value of sales increased by 4.5

per cent during the year, and even when the

increase in alcohol tax is taken into account,

this indicates a continuation of the

premiumisation trend that is seeing more and

more customers choose slightly more

expensive products when they buy.

Demand for alcohol-free products continued to

increase, with sales by volume increasing by

11.9 per cent and passing the three million

mark in litres sold. Sales of spirits increased

for the first time in 6 years, while wine and

beer sales essentially remained on a par with

last year.

As in 2014, the biggest increase in sales in

2015 was seen in organic product ranges,

where volumes increased by 67.7 per cent

during the year to 43.9 million litres and with

increases occurring in all categories. Sales of

organic beer, cider and mixed drinks

accounted for the biggest increase by volume,

growing by 142 per cent as a result of new

launches and the conversion of existing beers.

Work on the organic product range is

continuing and we are keen to see new

products join the range, primarily in segments

where there is currently a lack of such

products and where our customers would

appreciate an organic alternative.

Beer

Sales of beer remained stable in 2015,

increasing by 0.1 per cent to 234 million litres.

We noted a slight shift in volumes from lager

beers to specialist beers, but the growth in

specialist beers stopped at 9.9 per cent,

corresponding to a clear slow down and an

indication that the pronounced growth in

Swedes’ interest in beer has reached a more

controlled rate of growth.

Beer accounts for half of Systembolaget’s

sales by volume, but for less than one quarter

of the total retail value, at SEK 8.3 billion,

corresponding to a year-on-year increase in

value of 5.4 per cent. The growth was most

apparent in specialist beers, but canned lager

in general and organic canned lager in

particular also reported substantial growth.

Sales of beers in the exclusive range totalled

793,000 litres, corresponding to a year-on-year

increase of 7 per cent. This increase is slightly

smaller than that seen in previous years, but

was on a par with the increase in specialist

beer sales in the fixed range. A significant

share of customers’ interest in new products

has, however, clearly shifted to the local and

small-scale range (TSLS), where the range

increased substantially during the year.

1.8 million litres of local & small-scale beers

were sold during the year, corresponding to a

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year-on-year increase of almost 80 per cent.

Interest in local and craft products will, in all

probability, continue to increase during the next

few years and we will, therefore, continue to

launch this type of product in the fixed range in

2017 as well, in order to meet the demand from

the increasingly broad customer group.

We are seeing an increasing demand from our

customers for a broader range of styles in our

beer range and some of our launches in 2017

will, therefore, be designed to complement the

range with styles that we currently lack or of

which we have a limited selection. We will

also be making tangible improvements to our

in-store and online communication with

knowledgeable beer customers in 2016 and

thereby facilitate the customers’ choices and

inspire them to combine food with beer.

Sales of beer with a lower alcohol content

(max. 4.5 per cent) outpaced the increase in

sales of beer overall in 2015. The 4.1 per cent

increase by volume in sales demonstrates a

growing interest in lower alcohol beers, and

we are working to expand our range in this

area. Gluten-free beers are another clear trend,

with sales increasing by 40 per cent during the

year, and we now carry gluten-free lagers and

ales in our fixed range.

Organic beer

Sales of organic beers increased by 142 per

cent to 10 million litres. New launches of pale

canned lagers were the biggest single factor in

this increase, but a number of conversions of

existing products yielded additional increases

in sales. There are grounds to believe that this

interest in organic products will continue to

grow and our ambition is to expand the range

by offering organic beers in more styles than

those currently available. The launch level has

been high in this volume segment and we will,

therefore, postpone making any additional

requests for tender, opting instead to secure

availability in other segments.

Lager beers

Sales of lager beers fell in 2015 but are still far

and away the dominant category, with a market

share of all beers of 90.8 per cent. The decline

of 0.6 per cent is evenly spread between canned

and bottled lagers. There continues to be a clear

trend that is seeing canned lager increasingly

widely sold in smaller sized cans – the fall in

volume notwithstanding, the number of cans

sold increased by 1.4 million.

Sales of cheaper pale bottled lager fell by 1

million litres. Half of this volume would appear

to have shifted to more expensive lager beers,

with the other half transferring to specialist

beers. We see a need for renewal in the

segment, primarily in the form of countries of

origin and styles, and we have a number of new

launches in this segment in March and June

2017 – the time of the year when the demand

for pale lager is at its greatest.

The pale canned lager segment in the higher

price brackets is currently very small but is

likely to grow in future in line with the growing

craft trend. We will launch cautiously in this

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LagerValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

LAGER CAN <= 355ML (<6.0%) < SEK 17 1 414,50 11,50% 42 201,00 7,50%

LAGER CAN <= 355ML (<6.0%) >= SEK 17 3,3 6006,10% 58,7 6589,60%

LAGER CAN > 355ML (<6.0%) 2 546,40 0,20% 90 955,50 -4,20%

LAGER EXTRA STRONG CAN (6.0%-..) 1 204,80 5,00% 35 682,20 0,10%

DARK LAGER CAN 50,6 -5,90% 1 454,90 -9,30%

LAGER BTL <=355ML & <17/>355ML & <20

(<6.0%)1 304,40 -0,30% 32 962,60 -3,00%

LAGER BTL <=355ML & >=17/>355ML &

>=20 (<6.0%)273,6 13,00% 5 171,30 10,20%

LAGER EXTRA STRONG BOTTLE (6.0%-..) 121,1 13,80% 3 347,50 7,70%

DARK LAGER BOTTLE 39,1 9,60% 903,7 6,30%

OTHER LAGER 6,1 -13,00% 146 -21,80%

Lager total 6 963,90 3,80% 212 883,50 -0,60%

segment and will be monitoring customer

demand closely.

We have launched several Czech and German

style lagers in 2015 and 2016 and will

continue to top up the range with additional

styles in 2017, for example in the form of pale

bock beer. Speciality beer

Sales of speciality beer are continuing to

increase, but the long-term trend with high 2-

digit figures ended in 2015 when the increase

stopped at 9.9 per cent. The major segments

are maintaining a constant growth rate with

the higher growth rates apparent for smaller

and more niched segments where the

customers with the biggest interest in this

segment are clearly affecting sales figures.

Sales of speciality beer by volume totalled

17.4 million litres and there is a substantial

difference between the average per litre price

for speciality beer and lager beers, for

example, with lagers costing an average of

exactly SEK 30 per litre and the average

speciality beer almost twice as expensive at

SEK 62.60 per litre.

Ale is by far the biggest of the speciality beers

and we are continuing to see growth,

particularly for IPAs, which have now

established themselves well outside of the

boundaries of the real speciality beer fans. IPA

sales increased by a total of approximately 45

per cent in the fixed range, and as the range is

broad, we will be cautious with new launches of

IPAs and APAs. We see a greater need for

creating breadth in the range and additional

launches of these two types of speciality beer

risk counteracting the breadth for which we aim.

Sales of bottled ale, which is the biggest

segment in the category, have stabilised in

comparison with previous years, increasing by

2.9 per cent in comparison with the previous

year’s increase of 19.5 per cent. Sales of canned

ale are increasing at a slower rate, partially due

to several new launches in the segment but also

as a result of a number of session beers, that is,

beers with a lower alcohol content and but

plenty of flavour, entering the range through the

available-for-order range. We regard this as a

reaction to the higher alcohol IPA beers and an

indication that more and more people are

thinking about their alcohol intake when they

drink beer.

One trend we are seeing is that a number of

breweries have begun producing beers that

have been flavoured, primarily with a variety

of fruits and berries, and that there is an

increase in customer demand for these beers.

We will, therefore, be looking for beers of this

type and are happy to take suggestions on the

sort of flavours that are the best matches for

customer demand.

The new segment for beers in large bottles, so-

called sharing bottles, showed the biggest

percentage increase, reaching sales by volume

of 341,000 during the year. We believe that the

growing interest in beer and food combinations

may result in growth in this segment in future

and may result in beer challenging wine as a

drink to serve with fine dining. We are also

seeing more and more people asking for menu

suggestions to be accompanied exclusively by

beer and are, therefore, looking for a distinct

Special beerValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

ALE BOTTLE (..-5.9%) 443,3 10,50% 7 439,80 2,90%

ALE CAN (..-5.9%) 72,6 36,20% 1 255,20 19,50%

PORTER/STOUT BOTTLE/CAN (..-5.9%) 44,3 5,50% 837,3 2,00%

ALE EXTRA STRONG (6.0%-..) 332,7 19,10% 4 372,10 14,20%

PORTER/STOUT EXTRA STRONG (6.0%-..) 35,8 15,60% 383,4 13,00%

WHEAT BEER BOTTLE/CAN 88,5 18,40% 1 827,70 12,50%

BEER BOTTLE 750ML >= SEK 49 31,8 39,20% 340,6 58,20%

SPONTANEOUS FERMENTATION BEER 11,5 46,60% 134,2 45,00%

OTHER BEER 55,5 29,40% 1 250,30 21,70%

OTHER ALE/PORTER/STOUT 0,2 6,40% 3,2 -8,50%

Special beer total 1 116,30 16,80% 17 843,70 9,90%

Seasonal beerValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

EASTER 19,1 5,00% 367,8 1,50%

OKTOBERFEST 21,7 9,60% 476,1 9,50%

CHRISTMAS BEER LAGER 76,8 5,40% 1 896,30 0,60%

CHRISTMAS BEER SPECIAL BEER 61,2 0,70% 899,9 -4,60%

Seasonal beer total 178,8 4,20% 3 640,10 0,40%

dessert beer in the porter/extra strong stout

segment.

Sales of spontaneously fermented beer have

increased considerably during the year, but the

limited availability of this type of beer mean

that we will meet customer demand through

launches of small consignments.

Sales of seasonal beers are largely on a par

with levels in 2014, but the clear decline in

sales of Christmas beers during the year is

remarkable. What we did see during the

Christmas period was a corresponding

increase in sales of other specialist beers and

hence it would seem that many of those

interested in beers are now, for preference,

choosing dark beer types that are not

specifically profiled in the run-up to Christmas

when buying drinks for the festive season.

Cider & mixed drinks

Sales of cider and mixed drinks totalled 16.8

million litres in 2015, with a total retail value

of SEK 868 million. The category as a whole

accounts for 3.6 per cent of Systembolaget’s

total sales by volume and 2.5 per cent of the

total retail value. Volumes fell by 3 per cent

during the year, but a degree of

premiumisation resulted in the retail value

actually increasing by 2 per cent.

Sales of sweet canned cider fell, but the

decline (which corresponded to 830,000 litres)

was largely due to a best-selling brand

changing its can size from 50 to 44 cl.

Dry/medium ciders performed well. The

segment is dominated by apple cider and we

are, therefore, looking for pear ciders to enable

us to offer breadth in the range. We will also

continue to launch products in the large bottles

segment in order to secure a range of a type of

cider that is traditionally more food-friendly

than many others in the category for our

customers.

The trend in sales of mixed drinks has,

however, turned around and increased by 6.4

per cent due to new launches and shifts from

the available-for-order range to the fixed

range. We are receiving numerous requests

from our stores and via our customer services

team for drinks with little or no added sugar

and are, therefore, looking for a product with a

maximum of 30g of sugar per litre.

There are still relatively few organic products

in this category and we are keen to see more

such launches in future, primarily within

segments where the range is limited.

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Cider and mixed drinksValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

DRY/MEDIUM-DRY CIDER BOTTLE 52,7 8,70% 952,1 6,40%

DRY/MEDIUM-DRY CIDER BOTTLE

750ML >= SEK 497,5 -2,10% 103,9 -6,30%

DRY/MEDIUM-DRY CIDER CAN 23,2 11,90% 545,3 11,90%

MEDIUM-SWEET/SWEET CIDER

BOTTLE79,7 -5,10% 1 588,10 -6,20%

MEDIUM-SWEET/SWEET CIDER CAN 301,1 -6,10% 7 184,20 -11,50%

CIDER OTHER PACKAGING 3,3 4833,70% 34,3 1943,90%

MIXED DRINKS 400,4 8,40% 6 378,10 6,40%

Cider and mixed drinks, total 867,9 2,00% 16 785,90 -3,00%

Seasonal cider and mixed drinksValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

CHRISTMAS CIDER & MIXED DRINKS 3,5 -9,90% 74,1 -12,70%

Seasonal cider and mixed drinks, total 3,5 -9,90% 74,1 -12,70%

Sales of cider and mixed drinks by

packaging type

Sales of canned cider and mixed drinks fell

slightly during the year, with PET taking a big

leap forward instead, increasing by 43 per cent

during the year to 1.2 million litres. It is clear

that the customers who buy products in this

category are very keen on PET as a packaging

type and we encourage new launches in and

conversions to this packaging type.

Spirits

Spirits account for 4 per cent of

Systembolaget’s total sales by volume but for

just over 20 per cent of the total retail value.

Spirit sales totalled 18.6 million litres in 2015,

corresponding to a retail value of SEK 6.9

billion. This equates to a year-on-year increase

of 2.2 per cent and reflects a break in the

continuous decline in volumes seen since

2009. The reason for the break in the trend is

not completely clear, but given that the lowest

spirits sales figures ever reported in Sweden in

2014, it may simply be a case of a recovery to

a more stable level, and we expect sales in the

next few years to remain on more or less the

same level as today.

Dark spirits and liqueurs increased their share

of the category group’s sales slightly during

the year, while sales of white spirits declined.

The premium brands, often from global

operators, are performing more strongly than

local brands in several categories, and we are

seeing zero mirroring of the trend towards

local and small-scale products that is so strong

in beers. Just under 30,000 litres of local and

small-scale spirits were sold in 2015 in

contrast to spirits in the exclusive range, for

which sales increased by 16 per cent during

the year to 71,000 litres.

Sales in traditional segments, which might be

thought to attract an ageing consumer group,

continued to fall by volume. Canadian whisky,

Swedish punch, and schnapps all come under

this segment where the long-term trend in

sales would appear to be downwards.

Launch levels for spirits continue to be

relatively low in 2017. New launches have

always found it hard to gain a foothold in the

majority of categories as the market is

dominated by a few strong brands that are

already very strongly represented in the range.

Many of the launches will, therefore, focus on

the segments where customer demand is

increasing, but we will also focus on

expanding the range of well-known but

slightly more unusual types of article that are

currently absent from our range.

Drinks & cocktails

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Drinks & cocktails

Value (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

UNSPICED DISTILLED SPIRITS 995,3 1,30% 3 386,30 0,40%

UNSPICED DISTILLED SPIRITS SMALL BOTTLES 350,4 -1,40% 1 112,80 -2,00%

FLAVOURED VODKA 78,6 0,30% 215,1 -0,50%

GIN 339,9 4,80% 1 031,90 3,20%

GIN SMALL BOTTLES 76,7 1,00% 216,6 0,20%

WHITE RUM 67,6 0,60% 192,1 -0,70%

WHITE RUM SMALL BOTTLES 20,8 -1,40% 55,6 -3,80%

FLAVOURED RUM 170 7,90% 489,6 9,40%

TEQUILA 30,2 5,80% 72,5 6,30%

ANISE 17,2 4,90% 42,1 5,80%

READY-MIXED DRINKS 19,4 -11,50% 102,4 -11,70%

READY-MIXED DRINKS SMALL PACKAGING 5,9 0,40% 55,2 -1,50%

Drinks & cocktails, total 2 172,00 1,70% 6 972,30 0,80%

Drinks & cocktails are the second biggest

category within spirits, with sales totalling

almost 7 million litres. Sales increased by 0.8

per cent, corresponding to a smaller increase

than in the other major categories, but it is,

nonetheless, a clear break in the declining

sales trend seen in previous years. This break

in the trend is illustrated very clearly by the

fact that the large unspiced distilled spirits

segment, where sales declined by 4.1 per cent

in 2014, reported an increase of 0.4 per cent in

sales in 2015.

The primary growth in sales is occurring in gin

and spiced rums, where gin in higher price

brackets is attracting increased interest, both in

Sweden and internationally. Gin costing in

excess of SEK 300 per bottle does, admittedly,

account for a modest 2 per cent of total gin

sales, but the volumes have virtually tripled in

the past year and given the trend in other

markets, we believe that the trend can continue

in Sweden too.

Tequila and aniseed-flavoured spirits are also

showing above-average growth for the

category, albeit from an admittedly low level.

Light rum is, however, showing a negative

trend in spite of the positive and long-term

trend in other rum segments. We believe that

this particular decline may be due to

customers who buy rum looking for more new

types of items, and this is something we will

be looking to address in future launches.

Schnapps

Just over 1 million litres of schnapps were

sold in 2015, corresponding to a year-on-year

fall of 1.5 per cent. As in previous years, the

decline occurred primarily in the full bottle

segment, while sales of the smaller bottles

increased by volume. This can easily be

interpreted as meaning that the category is

becoming a more and more occasional

purchase category, with customers

increasingly buying spiced distilled spirits

exclusively for special occasions such as

Easter, Midsummer, and Christmas.

The trend within the category and the small

number of strong brands that dominate sales

mean that the number of new launches will be

very limited.

Whisky/Whiskey

Whisky and whiskey are the biggest category

within the spirits category group, and with

sales of 7.3 million litres, account for 39 per

cent of total spirit sales. The category reported

growth of 2.7 per cent, corresponding to

almost 200,000 litres, and the premiumisation

trend is clear here too.

Sales of whisky, excluding malt whisky,

increased by 1.6 per cent to almost 6 million

litres. Canadian whisky is the one type of

whisky where sales by volume fell during the

year, and it is also the type with the lowest

average price. American and Irish whiskies

showed above-average growth for the category

– a trend that has, with minor interruptions,

been apparent for a while. They are, however,

still relatively small countries of origin in

comparison with Scottish blended whisky,

where sales increased by almost 60,000 litres

during the year in what was a clear break in

trend.

Sales of malt whisky increased in 2015 by

almost 100,000 litres to 1.3 million litres,

SchnappsValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

SPICED DISTILLED SPIRITS 302 -1,50% 766,4 -3,10%

SPICED DISTILLED SPIRITS SMALL BOTTLES 119,3 5,50% 298,2 2,90%

Schnapps total 421,2 0,40% 1 064,60 -1,50%

WhiskyValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

BLENDED SCOTCH WHISKY 978,4 2,60% 2 772,80 1,80%

BLENDED SCOTCH WHISKY SMALL BOTTLES 281,6 2,20% 749,4 1,20%

CANADIAN WHISKY 327,7 -0,20% 1 058,40 -1,40%

CANADIAN WHISKY SMALL BOTTLES 112,3 -5,90% 338,2 -7,80%

AMERICAN WHISKEY 101,4 8,10% 231,5 5,80%

AMERICAN WHISKEY SMALL BOTTLES 23,1 24,30% 49,4 29,00%

IRISH WHISKEY 243,8 9,50% 593,6 8,30%

IRISH WHISKEY SMALL BOTTLES 69,7 3,80% 155,9 1,90%

OTHER WHISKY 19,1 52,50% 32 26,30%

SCOTCH MALT WHISKY <= 18 YEARS OLD 644,8 7,90% 1 111,50 7,20%

SCOTCH MALT WHISKY <= 18 YEARS OLD

SMALL BOTTLES45,4 -5,30% 60,1 -6,30%

SCOTCH MALT WHISKY > 18 YEARS OLD 31,4 9,50% 16,6 5,20%

OTHER MALT WHISKY 117,3 26,00% 147 23,60%

Whisky total 2 995,80 4,80% 7 316,30 2,70%

corresponding to an increase of 8.1 per cent.

The interest in malt whisky is a long-term

trend and one that seems to be continuing

unabated. The retail value of sales totalled

SEK 839 million, corresponding to an increase

of 9.4 per cent, and even through no direct

premiumisation trend is apparent in these

figures, an increase in malt whisky sales is, in

itself, a sign of premiumisation in that this is a

substantially more expensive type of drink.

We are also seeing an increase in sales of malt

whiskies that are more than 18 years old,

clearly demonstrating that customers’ interest

in “age statements” in the higher price brackets

is increasing. The exclusive and available-for

order ranges both play a major role for the

customers in this segment, with the fixed range

accounting for only 58 per cent of sales in this

segment, while the exclusive and available-for-

order ranges enjoy more or less equal shares of

the rest of the total volume of sales.

The customer who buys malt whisky differs

from other customers in the spirits category

group in that he or she is more interested in

trying new types, and this is reflected in the

fact that our launch level is relatively high in

this category, both in the fixed range and in

the exclusive range.

Digestifs

Sales of digestifs increased by 6.7 per cent to

1.2 million litres in 2015. Dark rum, which

overtook cognac as the biggest segment in

digestifs in 2014, has continued to show high

growth rates, with sales increasing by 15 per

cent during the year. The increase in retail

value was a massive 21 per cent and, in 2015,

dark rum also overtook cognac in terms of

retail value, so it is clear that rum is now

firmly established with the Swedish consumer.

Sales of cognac remained, in principle,

unchanged during the year, totalling 381,000

litres. A limited shift from small bottles to

large ones was apparent and there was also a

trend towards French brands, although the

Scandinavian cognac houses still account for

the majority of sales.

Calvados and grappa/marc are considerably

smaller segments in this category, but both are

developing slightly more positively than

spirits as a whole, so there seems to be a

limited but growing group of fans of the more

uncommon types of digestifs.

Sales of bitters fell by volume in 2014 but

recovered in 2015, increasing by 5.5 per cent to

167,000 litres. Sales of brandy also increased

in 2015, particularly in terms of retail value,

where sales of full bottles increased by 13.6

per cent in comparison with the increase in

sales by volume of 8.4 per cent. The increase is

due to new launches in the segment and even if

the volume is modest, it still shows that the

scope exists for higher-grade products, even

outside the cognac segment.

Liqueurs

Sales of liqueurs increased by 105,000 litres in

2015 to just over 2 million litres, corresponding

to a 5.4 per cent increase on the previous year

when sales fell by 3.5 per cent. The increase in

retail value was only slightly smaller than the

growth in sales by volume and the difference in

Digestif

Value (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

COGNAC 158,8 3,20% 311,4 2,50%

COGNAC SMALL BOTTLES 36,8 -3,70% 70 -7,10%

OTHER BRANDY 27,1 13,60% 75,1 8,40%

OTHER BRANDY SMALL BOTTLES 17,5 -1,30% 49,9 -3,50%

CALVADOS 34,5 4,60% 74,3 3,40%

GRAPPA/MARC 7,6 6,00% 14,9 3,60%

DARK RUM 180,2 20,80% 372,1 14,50%

DARK RUM SMALL BOTTLES 28,8 23,30% 78,8 17,70%

BITTERS 72,4 7,20% 166,8 5,50%

OTHER SPIRITS, SEGMENT 4 -12,70% 7 -10,50%

Digestif total 567,7 9,50% 1 220,40 6,70%

LiqueurValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

CHOCOLATE, COFFEE AND NUT LIQUEURS 38,5 3,70% 114,9 2,00%

CREAM AND EGG LIQUEURS 130,8 6,80% 466,3 6,90%

FRUIT AND BERRY LIQUEURS 153,1 6,10% 426,1 7,00%

SWEDISH PUNCH 38,5 -0,50% 125,3 -1,30%

OTHER LIQUEURS 155,5 6,40% 428,6 5,80%

OTHER LIQUEURS SMALL BOTTLES 203,2 7,20% 492,9 4,90%

Liqueur total 719,6 6,10% 2 054,20 5,40%

this category is attributable in full to the

increase in the rate of alcohol tax.

The biggest increases were seen in fruit and

berry liqueurs and in cream and egg liqueurs, in

both cases largely as a result of individual

brands showing above average growth. The

growth in other liqueurs is shared between

several items, but here too, it is also clear that

the main increase in volume is coming in the

shots type of drinks, rather than in classic

liqueurs.

Wine

Wine sales decreased by volume by just over

one part per thousand in 2015, or by almost

exactly the same amount as in the previous year.

Sales totalled 197.6 million litres, corresponding

to 42 per cent of Systembolaget’s total sales.

The retail value of sales totalled SEK 18.1

billion, corresponding to 53 per cent of

Systembolaget’s sales and to a year-on-year

increase of 4.3 per cent.

Wine sales have increased in Sweden by

approximately 5 per cent over the past 5 years,

and our previous assumptions that Sweden is a

mature market for wine still hold. There is

nothing to suggest that the situation will change

to any marked degree in the next few years;

rather, we expect to see a long-term stable level

of sales.

The number of launches within the wine

category group will, however, continue to be

higher than in other categories. There is

considerable interest in new products amongst

our customers and a variation in countries of

origin, types and styles that results in customers

expecting a relatively broad palate – and that

demands a relatively high launch level.

Wine packaging

Boxed wine is the best-selling type of

packaging for wine in Sweden, with a 52 per

cent market share. Glass bottles accounted for

40 per cent of total sales in 2015, which was the

highest share in many years. Sales of wine in

glass bottles increased by 4 per cent during the

year in what was probably a further

confirmation of the premiumisation trend

whereby many customers are looking to buy

better quality wines – a sector in which glass

bottles predominate.

Sales of wine in glass bottles sealed with

natural cork rose by 13 per cent during the year,

while sales of screw top bottles fell by 3 per

cent in what is probably more an expression of

the fact that many customers are choosing more

expensive wines than an indication of a

preference for one type of seal over another.

Screw tops are, however, still by far the

dominant seal type.

Traditional bottles are clearly taking market

shares from boxes, but they are taking an even

bigger share from tetra packaging, which saw

sales fall by 3 per cent during the year. Tetra

packaging sales have fallen by a massive 25

per cent in 5 years and now account for 6 per

cent of the total volume of sales. Sales of PET

bottles are moving in the opposite direction,

increasing by 20 per cent during the year and

now accounting for 1.6 per cent of sales,

corresponding to over 3 million litres.

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Organic wine

Sales of organic wine increased by 55 per cent

to 32.9 million litres in 2015. This figure

corresponds to a growth of 11.6 million litres

from the 10.6 million litres sold last year and

reflects what a straight-line increase in sales

since 2013 is, effectively. The retail value

trend was, if the tax increase is taken into

account, absolutely parallel with the increase

in volume, and the retail value of organic wine

sales in 2015 totalled SEK 2.9 billion.

A number of conversions and major launches

during the year have enabled us to meet

customer demand for organic wines and we

will continue with a relatively high launch

level for organic wines in 2017. We have

noted a number of gaps in the range from

certain countries of origin and in the higher

price bands and would welcome suggestions

for products to fill these gaps.

Our long-term strategic goal is to offer organic

alternatives in all of the major segments and

for our customers always to be able to find a

relevant organic alternative when they shop

with us.

Ethically certified wine

Sales of ethically certified wine increased by

40 per cent in 2015 to 10.6 million litres,

corresponding to 5.4 per cent of all wine sales

and to 17.9 per cent of sales from the countries

of origin where ethical labelling is a

possibility.

One big change from 2014 is that sales of

ethically labelled wines that are not organic

account for the entire growth reported in 2015,

in what is a complete reversal of the trend

from the previous year. It is difficult to find a

comprehensive explanation for the difference

from one year to the next, although a major

conversion accounted for the majority of the

increase. However, what does seem clear is

that ethical labelling has become a stronger

sales argument for our customers during the

year and in the future we will probably see an

increasing demand from our customers for

good working conditions at all wine producers

and for a larger share of the income pie to go

to the agricultural workers.

Red wine

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Sales of red wine fell by 0.6 per cent by

volume in 2015 to 103 million litres. This

decline totalled almost 600,000 litres and

primarily affected boxed wine sales. The retail

value of sales increased by 3.2 per cent to SEK

9.3 billion, corresponding to 27 per cent of

Systembolaget’s total sales revenues.

Red wine is, with the exception of fortified

wine, the most mature wine category, and

sales fell for the second year in succession.

This is, along with beer, the category that has

the biggest impact on customer satisfaction

levels and launch levels will, therefore, remain

high for red wine, despite the category

maturity, and we have noted a considerable

interest in new products amongst red wine

customers.

The growth is greatest in the medium and

higher price bands. There is considerable

customer demand for the exclusive range, and

red wine is by far the biggest category in this

range in terms both of volume and retail value

and of the number of launches. Sales of small

consignments of red wine increased by 17 per

cent in 2015 to 474,000 litres, and it is clear

that more and more customers appreciate our

exclusive product range.

Italy dominates red wine sales by a wide

margin in terms of countries of origin, but the

vigorous growth we have seen in recent years

has tapered off with sales increasing by a

modest 0.1 per cent during the year to 41

million litres. Wines made wholly or in part

from dried grapes accounted for almost 10 per

cent of all red wine sales, growing by 7 per

cent during the year, although this does

correspond to a slow-down in comparison

with previous years.

Zinfandel has continued to grow strongly, with

sales rising by 8 per cent from 2014 levels to 9

million litres. Half of the volume comprises

Italian zinfandel and it is within this country of

origin that virtually all of the growth is to be

found.

Sales of South African red wines fell sharply

by volume, allowing Spain to rise to second

place in terms of most popular country of

origin, but the distance between Spain and top-

ranked Italy remains very large – Spain

achieved sales of 11 million litres. There is,

however, a clear trend towards a widening of

customers’ preference as sales of wines from

the bottom five countries of origin in the top

10 list (France, USA, Portugal, Argentina and

New Zealand) all experienced increases in

sales by both volume and retail value.

In the bottled red wines segment, the main

increases during the year were in Italian wine

districts such as Tuscany, Puglia, Sicily and

Piedmont, but French wines from Bordeaux

and the Rhône valley are attracting increasing

interest. Burgundy is still bigger than

Bordeaux, which is unique from an

international perspective, although sales of

Burgundy have declined slightly by volume,

primarily in favour of pinot noirs from New

Zealand and the USA, where the range in the

SEK 100 to SEK 150 price band is a strong

competitor.

Sales of Amarone declined for the third year in

succession in terms of market share, falling

from 900,000 litres in the peak year of 2012 to

680,000 litres in 2015.

Red wineValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

RED WINE (0-59) 287,4 -7,90% 3 760,70 -8,20%

RED WINE (60-69) 451,5 -5,70% 4 982,80 -9,30%

RED WINE (70-79) 833,5 6,00% 8 051,50 3,50%

RED WINE (80-89) 913,5 10,50% 7 800,70 7,80%

RED WINE (90-99) 723,6 5,90% 5 604,40 1,50%

RED WINE (100-119) 542,1 -0,50% 3 684,90 -5,40%

RED WINE (120-149) 346,9 2,30% 1 924,50 -1,50%

RED WINE (150-199) 343,5 8,60% 1 459,60 5,90%

RED WINE (200-299) 189,5 7,40% 572,4 4,00%

RED WINE (300-499) 58 -4,00% 117,9 -7,30%

RED WINE (500-..) 34,2 6,80% 32,1 3,60%

RED WINE SMALL BOTTLES (0-186.6 SEK/L) 129,1 10,70% 1 031,90 5,30%

RED WINE SMALL BOTTLES (186.7-..SEK/L) 21,3 11,80% 73 11,40%

RED WINE LARGE BOTTLES 23,1 11,00% 152,2 4,60%

RED WINE BOX 1.5-2L 59,8 14,20% 561,1 14,00%

RED WINE BOX >= 3L (0-66.6 SEK/L) 1 769,70 2,10% 29 017,10 -1,70%

RED WINE BOX >= 3L (66.7-..SEK/L) 2 370,90 2,50% 30 342,50 -0,30%

RED WINE NOT BOX OR BOTTLE >= 500ML 231,8 1,80% 3 736,20 -1,70%

RED WINE NOT BOX OR BOTTLE < 500ML 9,8 -2,30% 97,7 -7,90%

Red wine total 9 339,30 3,20% 103 003,30 -0,60%

Sales of red boxed wines fell by just over

500,000 litres during the year, primarily in the

sub-SEK 200 price band. Sales of small boxes

increased by 14 per cent, however, but account

for less than 1 per cent of boxed wine sales.

Appassimento and zinfandel continue to be

popular and the style that these types of wine

represent account for approximately one

quarter of sales of red boxed wines by volume.

Sugar in red wines has been the source of

debate amongst wine journalists and

knowledgeable customers for many years now,

and in September 2015, we began displaying

the sugar content on our shelf labels. It is, as

yet, too early to draw any reliable conclusions

from the change, but it is clear that dry red

wines (0-4 grammes sugar per litre) increased

their share of sales from 37 per cent to 41 per

cent, while the sweetest wines (over 10

grammes sugar per litre) also saw a small

increase from 13 per cent to 14 per cent.

White wine

White wine sales increased by 7,000 litres in

2015, corresponding to one tenth of a pro

mille, to 61.5 million litres. White wines

account for 31 per cent of Systembolaget’s

total wine sales and for 13 per cent of our total

volume of sales. This is a mature category and

sales are spread very evenly over the year. The

retail value of sales increased by 4.5 per cent

and totalled almost SEK 5 billion,

corresponding to 14.4 per cent of the total

retail value of sales.

Sales in the various price bands stabilised in

2015, with sales in the lower price bands

recovering and those in the higher bands

declining slightly. The biggest growth

occurred in the price bands in excess of SEK

200, albeit from modest volumes, but this is

still a sign of a growing interest in more

exclusive products. Sales of small

consignments increased by 14 per cent to

152,000 litres during the year.

South Africa is still the biggest country of

origin, but sales by volume decreased year-on-

year. France, which is the second most popular

country of origin, has a considerably higher

average value per litre and overtook South

Africa in terms of retail value in 2015 making

it, at least in that respect, the biggest country

of origin for white wine.

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White wineValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

WHITE WINE (0-59) 221,8 0,40% 2 843,90 -0,80%

WHITE WINE (60-69) 347,1 3,50% 3 842,80 -0,40%

WHITE WINE (70-79) 441,4 8,90% 4 341,10 5,20%

WHITE WINE (80-89) 315 5,80% 2 713,20 2,10%

WHITE WINE (90-99) 320,6 2,20% 2 513,50 -0,80%

WHITE WINE (100-119) 253,6 6,00% 1 712,00 1,50%

WHITE WINE (120-149) 173,6 8,40% 967,4 4,50%

WHITE WINE (150-199) 78,8 -2,70% 355,1 -5,80%

WHITE WINE (200-399) 29,8 14,40% 85,5 14,10%

WHITE WINE (400-) 5,2 14,40% 6,5 14,10%

WHITE WINE SMALL BOTTLES (0-186.6 SEK/L) 72,8 0,80% 624,4 -4,00%

WHITE WINE SMALL BOTTLES (186.7-..SEK/L) 8 10,70% 39,1 5,50%

WHITE WINE LARGE BOTTLES 4,9 -6,80% 40,7 -11,50%

WHITE WINE BOX 1.5-2L 79,5 5,90% 674,5 7,00%

WHITE WINE BOX >= 3L (0-56.6 SEK/L) 438,5 -0,40% 8 243,20 -4,90%

WHITE WINE BOX >= 3L (56.7-66.6 SEK/L) 1 065,80 5,00% 17 087,10 0,30%

WHITE WINE BOX >= 3L (66.7-..SEK/L) 701,7 6,50% 9 208,30 1,50%

WHITE WINE NOT BOX OR BOTTLE >= 500ML 368,4 2,20% 5 985,20 -1,50%

WHITE WINE NOT BOX OR BOTTLE < 500ML 22,7 3,20% 225,8 -1,70%

White wine total 4 949,00 4,50% 61 509,20 0,00%

Just over 20 per cent of all white wine sold is

made from chardonnay, followed on the top

ranking list by chenin blanc, sauvignon blanc

and riesling. Sauvignon blanc is the grape

showing the biggest increase of these types,

while chenin blanc has lost the biggest market

share due to the decline in sales of South

African wines.

Purchasing patterns for red and white wines

differ. When a customer’s shopping basket

contains a single sub-category, it is more

likely to be a red bottled wine than a red boxed

one, but when it comes to white wine, the

basket is more likely to contain a white boxed

wine than a white bottled one. And given that

the relationship between boxed wine baskets

corresponds to sale volumes, it is clear that it

is far less common for a customer to visit one

of our stores to buy just bottled white wine,

but that this is far more common for red wine.

The conclusion we draw from this is that white

wine is less of a high-interest product than red

wine, and this is confirmed by sales volumes

for wines costing in excess of SEK 200 per

bottle, where red outsells white by 8 to 1. In

the launch plan, this is expressed in a slightly

lower launch level for white wine and a

greater focus on depth than on breadth in

comparison with red wine.

Rosé wine

Sales of rosé wine fell by 4.4 per cent to 14.8

million litres in 2015, while the retail value of

sales increased slightly by 0.4 per cent to SEK

1.2 billion. The clearest trend in the category is

that wines costing in excess of SEK 100

account for the biggest growth, and with over

600,000 litres sold, it is also clear that rosé

wine is now acceptable in smarter settings. The

market share for rosé in the wine category

group is 7.5 per cent, but the share varied from

2.3 per cent in December to 15.8 per cent in

July.

Rosé wine sales are tracking a globally

increasing sales trend, but the summer of 2015

posed challenges in the form of poor weather,

which left a clear mark on sales. A completely

unscientific comparison between two weeks of

bad and good weather showed a massive

increase in sales of 70 per cent when the sun

came out. Rosé is, in other words, very heavily

weather-dependent, and shares consumption

opportunities with, first and foremost, red wine.

The combined red and rosé sales over the

summer season is, in principle, constant, and

the weather determines which category the

customers prefer.

France and the USA are the biggest countries of

origin and both are showing growth. The

flavour trends are “light and dry” and “fruity

with a pronounced sweetness”, both of which

benefit these countries. Sales of organic rosé

wines increased by 100 per cent, year-on-year,

and accounted for 13 per cent of rosé wine sales

in 2015. This trend will probably continue, with

rosé catching up with white wine in terms of

share of sales.

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RoséValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

ROSÉ (SEK 0-79) 265 -6,10% 2 957,90 -9,60%

ROSÉ (SEK 80-99) 216,4 -2,40% 1 912,80 -5,60%

ROSÉ (100-.. SEK) 90,3 12,70% 615,6 10,30%

ROSÉ SMALL BOTTLES 18 39,50% 154,8 25,50%

ROSÉ BOX (0-66.6 SEK/L) 320 8,40% 4 925,20 2,30%

ROSÉ BOX (66.7-..SEK/L) 202,8 -3,90% 2 657,00 -10,00%

ROSÉ NOT BOX OR BOTTLE 97,1 -3,90% 1 538,10 -9,30%

Rosé total 1 209,60 0,40% 14 761,40 -4,40%

“It doesn’t matter how strong the

rosé wine trend is – it will continue to

be a seasonal product. We have been

wanting to seasonally adjust the range

of rosé wines for many years now, and

the new evaluation periods from June to

August will give us new potential to do

precisely that. We’re going to be

looking at the potential for evaluating

the rosé wine category during the peak

season alone, and varying the size of the

range during the rest of the year, to

ensure that the range is constantly

adjusted in line with customer demand.”

And how will you go about this?

“This summer, we’ll be trialling an expansion

of the rosé wines range in a few stores and

then cutting it back during the off season. Our

hope is that by next year, we’ll be able to

seasonally adjust the rosé wine range in all of

our stores.”

Emelie Westrup

Category Manager

Sparkling wine

The sales trend for sparkling wine has been

consistently positive for the past 15 years,

increasing by 12.9 per cent to 12.5 million

litres. Sparkling wine accounts, within the

wine category group, for 6.3 per cent of total

sales but for a massive 10.4 per cent of the

retail value. The growth is spread over the

majority of segments in the category, but both

sweet and rosé sparkling wines are showing

the weakest growth.

Three countries of origin dominate. Sales of

sparkling wines from Italy, France and Spain

are increasing and we are also seeing a

considerable interest in new products from

these countries, while other countries are

finding it hard to establish themselves with

new listings. Hungary has held a very strong

position in the lower price bands for some

time now, but lost 11 per cent of sales during

the year in favour of the three clear market-

leading countries.

The range of organic sparkling wine is still

relatively small, but the market share is still 19

per cent in the category, due to a couple of

best-selling items. We believe that our

customers will be seeking additional

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Sparkling wineValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

CHAMPAGNE (0-249) 124,1 20,60% 458,9 19,80%

CHAMPAGNE (250-399) 310 10,20% 685,1 7,50%

CHAMPAGNE (400-..) 91,1 17,90% 116,2 14,50%

CHAMPAGNE SMALL BOTTLES 62,5 10,20% 123,7 7,60%

CHAMPAGNE LARGE BOTTLES 26,2 13,00% 53,4 9,60%

ROSÉ CHAMPAGNE 25,4 4,70% 51,9 -0,40%

ROSÉ CHAMPAGNE SMALL BOTTLES 4,7 3,70% 9,6 1,80%

SPARKLING WINE (0-79) 358,4 26,20% 3 754,50 23,10%

SPARKLING WINE (80-119) 489,5 19,60% 3 864,30 14,60%

SPARKLING WINE (120-..) 57,2 11,30% 317,5 6,30%

SPARKLING WINE SMALL BOTTLES 62,2 18,80% 465 16,50%

SPARKLING WINE LARGE BOTTLES 13,2 -2,90% 95,7 -11,40%

SWEET SPARKLING WINE 63,1 1,70% 671,2 -5,40%

SWEET SPARKLING WINE SMALL BOTTLES 10,3 8,20% 76,7 7,90%

SPARKLING ROSÉ (0-79) 91,8 14,30% 1 088,20 11,20%

SPARKLING ROSÉ (80-..) 50 -10,70% 344,7 -13,40%

SPARKLING ROSÉ SMALL BOTTLES 5,6 9,90% 46,9 12,10%

OTHER SPARKLING WINE 32,1 3,50% 322,7 -4,70%

Sparkling wine total 1 877,50 15,50% 12 546,30 12,90%

What’s

happening

with rosé

wine?

alternatives in future and we will, therefore, be

broadening our range of organic sparkling

wines.

Aperitifs & dessert wines

Aperitifs & dessert wines are a very broad

category that primarily comprises fortified

wines, but also includes mulled wine, amongst

others. The majority of segments come under

the service role, which means that we have a

relatively low launch level but a relatively

large number of items, in that customers’

interest in new products is limited at the same

time as the range needs to be broad because

the category includes so many widely differing

flavour types.

Sales within the category as a whole fell by 6.8

per cent to 5.8 million litres in 2015. This is a

long-standing trend and one that has been

noted in many other large markets worldwide.

Dry fruit wines, saké and white port are the

only segments reporting growth, albeit all from

a very low level, due to new launches. Red

port, which is a far bigger segment, reported

volumes that were essentially unchanged from

the previous year and which appear to be

following the general sales trend for wine.

It is possible to distinguish nuances in the

reductions: vermouth is generally declining,

but the extra dry style is declining to a lesser

degree than the sweeter one. Full bottles of

dessert white wine experienced a major

decline, and it is clear that half bottles are a

more convenient packaging for the majority of

customers. Flavoured wines showed a slightly

smaller decline than the category as a whole. A

lot is happening in this segment in the world as

a whole and we are following developments

closely to ensure our ability to meet any future

customer demand.

Sales of mulled wine fell by 5.3 per cent to 2.6

million litres. Organic mulled wine was an

exception to the decline, with sales increasing

year-on-year by 20 per cent. It was also clear

that lower sugar contents, smaller bottles, and

traditional flavourings were most successful

during the snowy season in 2014.

Alcohol-free

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Apéritif & DessertValue (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

SHERRY/MONTILLA 23,4 -5,40% 174,1 -7,10%

EXTRA DRY VERMOUTH 29,4 0,30% 200,5 -2,30%

VERMOUTH 50,6 -5,40% 400,9 -10,20%

APERITIF 89,3 -2,10% 534,5 -8,00%

DRY FRUIT WINE 3 31,80% 18,6 20,30%

OTHER WINE, SEGMENT 8,3 -27,10% 36,6 -33,60%

SAKE 3,9 18,70% 19,4 7,80%

SWEET WHITE WINE 16,8 -11,10% 114,5 -20,90%

SWEET WHITE WINE SMALL BOTTLES 21,1 -3,00% 80,9 -1,50%

RED PORT 50,1 3,10% 257,4 -0,10%

WHITE PORT 2,8 9,30% 16,1 4,50%

SWEET SHERRY/MONTILLA 10,6 -0,40% 75 -2,00%

MADEIRA 12,5 -4,40% 67 -8,70%

FLAVOURED WINE 56,6 -2,50% 733 -7,50%

SWEET FRUIT WINE 26,2 -4,40% 237,5 -13,00%

OTHER DESSERT WINE 21,7 -4,70% 149,5 -10,80%

MULLED WINE 298,5 -0,80% 2 622,00 -5,40%

MULLED WINE SMALL BOTTLES 3,2 50,80% 23,2 29,60%

Apéritif & Dessert, total 728,3 -1,90% 5 760,90 -6,80%

0

50

100

150

200

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

-02-03-04-05-06-07-08-09-10-11-12-13-14-15Litre SEK


Sales of alcohol-free beverages increased at

more or less the same rate as in the previous

year, rising by 12 per cent to 3.1 million litres,

corresponding to 0.7 per cent of

Systembolaget’s total sales. The retail value of

sales increased by 15 per cent to SEK 166

million. We are seeing the same

premiumisation trend in alcohol-free

beverages as in the alcoholic categories.

Growth has been very stable since 2012 and is

occurring on the same conditions as the size of

the range has not changed, even though items

are constantly being replaced. The biggest

increases are occurring in the beer, cider and

“must” (unfermented seasonal sodas)

categories, but the growth in sales of alcohol-

free wines is also clearly exceeding growth

rates in their alcoholic equivalents.

We have noticed a clear health trend amongst

our customers. Many customers are

increasingly choosing to refrain from

consuming alcohol on certain occasions but

without being willing to do to the detriment of

the taste experience. The grocery retail trade

has also noted this trend and we have seen

both a whole string of campaigns promoting

alcohol-free alternatives during the year and

alcohol-free alternatives being given more and

more shelf space in grocery stores.

Our focus, for the alcohol-free range, will

continue along the same lines as in previous

years, with a range that reflects the rest of the

range and offers a clear alternative. We focus

on drinks for adults, both in terms of taste and

of packaging, and regard quality as being far

more important than price.

The launch plan does not specify what we will

be looking for and suppliers should visit the

Supplier portal for further information. You

will find details of the relevant dates for the

respective requests for tender and of

approximately how many products we intend

to buy in. You will also find a short

description of the main type of products for

which we are looking in the Supplier portal.

When evaluating the products Systembolaget

takes into account, not only the sensoric

quality, but also the anticipated customer

demand, the look of the packaging, the brand,

and the price.

Alcohol-free

Value (SEK

mil., incl.

VAT)

Full-year %

change

Volume

(000s of

litres)

Full-year %

change

ALCOHOL-FREE WINE 82,3 10,70% 1 184,70 4,60%

ALCOHOL-FREE BEER 34,3 26,70% 941,3 21,90%

ALCOHOL-FREE CIDER & MUST 32 21,70% 654,2 22,50%

WATER 0,7 -8,70% 30,6 -8,70%

ALCOHOL-FREE OTHER 16,3 3,10% 278,2 -3,60%

Alcohol-free, total 165,6 14,80% 3 089,00 11,90%

Contact information

Purchasing DirectorSara Norell +46 8 503 325 [email protected]

Category ManagersThe Category Managers should be contacted in connection with enquir-ies relating to categories, segments, product range mix plans, and evaluation. See the Supplier portal for the latest category breakdown.

For general questions not related to an individual category, please contact the Category Managers at the following Group email address: [email protected]

Group ManagerUlf Sjödin+46 8 503 303 [email protected]

Märta Kuylenstierna+46 8 503 302 [email protected]

Mats Olauson+46 8 503 325 [email protected]

Anna Rosenberg +46 8 503 325 [email protected]

Assistant Category Manager

Maria Staf+46 8 503 303 [email protected]

Emelie Westrup+46 8 503 327 [email protected]

Per Malmring (locum)+46 8 503 306 [email protected]

Group ManagerFredrik Arenander+46 8 503 301 [email protected]

Staffan Adin+46 8 503 303 [email protected]

Johan Ahlstedt+46 8 503 303 [email protected]

Anders Barrén+46 8 503 311 [email protected]

David Benge+46 8 503 303 [email protected]

Sebastian Braun+46 8 503 325 [email protected]

David Jean+46 8 503 303 [email protected]

Göran Klintberg+46 8 503 325 [email protected]

Johan Larsson+46 8 503 305 [email protected]

Magnus Lindblom+46 8 503 325 [email protected]

Gad Pettersson+46 8 503 325 [email protected]

Assistant PurchasersThe Assistant Purchasers should primarily be contacted via: [email protected]+46 8 503 303 27

Nikita Nordström+46 8 503 304 [email protected]

Isaac Virgin (locum)+46 8 503 302 91 [email protected]

PurchasersQuestions relating to the Purchasers’ areas of responsibility should be addressed to the Purchaser in question, while general issues relating to tenders, purchasing and launches are best addressed to the Assistant Purchaser in question.

See the Supplier portal for the latest breakdown of areas of responsibility.

2017 Launch plan

Documents

Transcript of 2017 Launch plan