Alcoholic Drinks in Finland
Euromonitor International's Alcoholic Drinks in Finland market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 168 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
The Market Value of Alcoholic Drinks Saw Healthy Growth Again in 2007
An improved economy and increased consumer confidence spurred sales in 2006 and 2007, especially in the off-trade. 2006 was the first year since the 2004 tax cuts when the market value recorded healthy growth. After a decline in unit price in 2004, prices were up again in 2007 and value growth was also boosted by healthy volume growth in most areas of alcoholic drinks.
Tax Regulations Shape Consumption Patterns of Alcoholic Drinks
The review period saw underlying changes in the operating environment of the alcoholic drinks market. Many of the changes were interconnected: as Estonia's EU entry removed private import quotas, the Finnish government lowered alcohol taxes in 2004. When, in 2007, the Estonian government made a decision to raise alcohol tax, the Finnish government followed suit.
Changes in taxation affected the consumption patterns of alcoholic drinks in Finland after 2004. As the tax was most dramatically lowered for spirits, the consumption of vodka and low-alcohol vodka grew by more than 20% in 2004 alone. Wine consumption in turn suffered as its taxation was lowered more moderately. In 2007, the sales of vodka were no longer growing. Regardless of unfavourable taxation, wine sales started to bloom again in 2006. This was a clear indicator that in Finland wine consumption is less price sensitive than that of vodka.
There Is No Stopping the Long Drinks Boom
Sales of the most popular RTDs – long drinks – rose by over 20% in 2006. However, the sales did not settle in 2007: the first half of the year again saw long drinks sales record double-digit growth. Long drinks sales started to grow rapidly in 2003 when new launches revived this market area. Growing sales have changed the nature of long drinks production. Grapefruit-flavoured drinks targeted originally at men have seen new brands and line extensions during the past few years. Basic grapefruit flavour is the leader, but producers have also combined the basic flavour with orange, cranberry, blueberry and red bitter flavours to name but a few. Low-calorie products have also been launched.
Beer Price War Jumbled Market Shares
Lidl's entry to the Finnish market in 2002 and tax cuts in 2004 started a phenomenon that had hitherto been missing in beer in Finland. Price war has characterised beer sales since 2004, when supermarkets started to use beer as a loss leader to attract customers. Soon, the smaller outlets followed the same pricing strategies.
Although price competition had slowed down by 2007, multipack sales still dominate the sales of standard beer, accounting for over 70% of volumes. Most beer is sold in a 12-pack, also called a "dachshund" due to its shape. As a result of the beer price war, sales shares started to fluctuate, with long-time leader Lapin Kulta finding itself back in fourth place in 2006, for example.
Tax Rise Will Not Stop the Growth
From the beginning of 2008, alcohol taxes will be raised again: spirits by 15% and weaker alcohol by 10%.
Rising alcohol tax will not stop the growth in the alcoholic drinks market, however. It will affect consumption of the most price-sensitive products such as low-priced and standard vodka. For other products, such as wine, there will be no notable difference. When taxes will rise again in 2008, trade sources believe that supermarket chains and breweries will be able to absorb some of the tax hike. In addition, for brewery product sales, it should be noted that while tax will go up by 10%, at the same time the packaging tax will be abolished, evening out the overall effect.
Table of contents
ALCOHOLIC DRINKS IN FINLAND : MARKET INSIGHT
EXECUTIVE SUMMARY
The Market Value of Alcoholic Drinks Saw Healthy Growth Again in 2007
Tax Regulations Shape Consumption Patterns of Alcoholic Drinks
There Is No Stopping the Long Drinks Boom
Beer Price War Jumbled Market Shares
Tax Rise Will Not Stop the Growth
KEY TRENDS AND DEVELOPMENTS
Tax Decisions Affect Consumer Behaviour Temporarily
Tax Rise Will Help to Revive Stagnating On-trade
Abolition of Tax on PET Bottles and Cans Revolutionises Order of Shop Shelves
Polarisation Pushes Private Label Sales to New Levels in Brewery Products
Low-calorie Products Face Strong Demand
Specialist Retailers
Summary 1 Leading Specialist Retailers 2006
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2006-2007
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 3 Selling Margin of a Typical Domestic Beer Brand 2007 – Karhu III
Table 4 Selling Margin of a Typical Domestic Wine Brand 2007 – Huttunen Hedelmävalkoviini
Table 5 Selling Margin of a Typical Imported Wine Brand 2007 – Hardy's
Table 6 Selling Margin of a Typical Domestic Spirit Brand 2007 – Koskenkorva Viina
Table 7 Selling Margin of a Typical Imported Spirit Brand 2007 – Courriere
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - FINLAND
ALTIA OYJ - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Altia Oyj: Key Facts
Summary 5 Altia Oyj: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 6 Altia Oyj: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 7 Altia Oyj: Competitive Position 2006
HARTWALL OY AB - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Oy Hartwall AB: Key Facts
Summary 9 Oy Hartwall AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 10 Oy Hartwall AB: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 11 Oy Hartwall AB: Competitive Position 2006
OLVI OYJ - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Olvi Oyj: Key Facts
Summary 13 Olvi Oyj: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 14 Olvi Oyj: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 15 Olvi Oyj: Competitive Position 2006
SINEBRYCHOFF OY AB - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Oy Sinebrychoff AB: Key Facts
Summary 17 Oy Sinebrychoff AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 18 Oy Sinebrychoff AB: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 19 Oy Sinebrychoff AB: Competitive Position 2006
V&S FINLAND OY - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 20 V&S Finland Oy: Key Facts
Summary 21 V&S Finland Oy: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
Summary 22 V&S Finland Oy: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 23 V&S Finland Oy: Competitive Position 2006
BEER IN FINLAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 24 Lager by Price Band 2007
Published Data Comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2002-2007
Table 25 Sales of Beer by Subsector: Total Value 2002-2007
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 27 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 30 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 31 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 32 Beer: Production, Imports and Exports: Total Volume 2001-2006
Table 33 Beer Exports by Country of Destination: Total Volume 2001-2006
Table 34 Beer Exports by Country of Destination: Total Value 2001-2006
Table 35 Beer Imports by Country of Origin: Total Volume 2001-2006
Table 36 Beer Imports by Country of Origin: Total Value 2001-2006
Table 37 Company Shares of Beer by National Brand Owner 2002-2006
Table 38 Company Shares of Beer by Global Brand Owner 2002-2006
Table 39 Brand Shares of Beer 2003-2006
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 41 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY IN FINLAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cider/Perry: Total Volume 2002-2007
Table 45 Sales of Cider/Perry: Total Value 2002-2007
Table 46 Sales of Cider/Perry: % Total Volume Growth 2002-2007
Table 47 Sales of Cider/Perry: % Total Value Growth 2002-2007
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Volume 2002-2007
Table 49 On-trade vs Off-trade Sales of Cider/Perry: Value 2002-2007
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2002-2007
Table 51 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2002-2007
Table 52 Cider/Perry Production, Imports and Exports: Total Volume 2001-2006
Table 53 Company Shares of Cider/Perry by National Brand Owner 2002-2006
Table 54 Company Shares of Cider/Perry by Global Brand Owner 2002-2006
Table 55 Brand Shares of Cider/Perry 2003-2006
Table 56 Forecast Sales of Cider/Perry: Total Volume 2007-2012
Table 57 Forecast Sales of Cider/Perry: Total Value 2007-2012
Table 58 Forecast Sales of Cider/Perry: % Total Volume Growth 2007-2012
Table 59 Forecast Sales of Cider/Perry: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES IN FINLAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 60 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 61 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 62 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 63 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 66 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 67 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 68 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2001-2006
Table 69 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 70 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 71 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 72 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 73 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 74 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 75 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
WINE IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 76 Sales of Wine by Subsector: Total Volume 2002-2007
Table 77 Sales of Wine by Subsector: Total Value 2002-2007
Table 78 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 79 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 80 Sales of Wine by On-trade vs Off-trade Split: Volume 2002-2007
Table 81 Sales of Wine by On-trade vs Off-trade Split: Value 2002-2007
Table 82 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2002-2007
Table 83 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2002-2007
Table 84 Volume Sales of Still Red Wine by Price Segment 2004-2007
Table 85 Volume Sales of Still White Wine by Price Segment 2004-2007
Table 86 Volume Sales of Still Rosé Wine by Price Segment 2004-2007
Table 87 Volume Sales of Other Sparkling Wine by Price Segment 2004-2007
Table 88 Sales of Still Red Wine by Grape/Varietal Type 2004-2007
Table 89 Sales of Still White Wine by Grape/Varietal Type 2004-2007
Table 90 Sales of Still Rosé Wine by Grape/Varietal Type 2004-2007
Table 91 Sales of Still Red Wine by Quality Classification 2002-2007
Table 92 Sales of Still White Wine by Quality Classification 2002-2007
Table 93 Sales of Still Rosé Wine by Quality Classification 2002-2007
Table 94 Wine Production, Imports and Exports: Total Volume 2001-2006
Table 95 Wine Exports by Country of Destination: Total Volume 2001-2006
Table 96 Wine Exports by Country of Destination: Total Value 2001-2006
Table 97 Wine Imports by Country of Origin: Total Volume 2001-2006
Table 98 Wine Imports by Country of Origin: Total Value 2001-2006
Table 99 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2006
Table 100 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2006
Table 101 Brand Shares of Still Light Grape Wine 2003-2006
Table 102 Company Shares of Champagne by National Brand Owner 2003-2006
Table 103 Company Shares of Champagne by Global Brand Owner 2003-2006
Table 104 Brand Shares of Champagne 2003-2006
Table 105 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2006
Table 106 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2006
Table 107 Brand Shares of Other Sparkling Wine 2003-2006
Table 108 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2006
Table 109 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2006
Table 110 Brand Shares of Fortified Wine and Vermouth 2003-2006
Table 111 Company Shares of Non-grape Wine by National Brand Owner 2003-2006
Table 112 Company Shares of Non-grape Wine by Global Brand Owner 2003-2006
Table 113 Brand Shares of Non-grape Wine 2003-2006
Table 114 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 115 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 116 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 117 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN FINLAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, Gin and Other Blended Scotch Whisky Price Band Methodology
Summary 25 Benchmark Brands – Finland
SECTOR DATA
Table 118 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 119 Sales of Spirits by Subsector: Total Value 2002-2007
Table 120 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 121 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 122 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 123 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 124 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 125 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 126 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2007
Table 127 Sales of Gin by Premium/Super-premium Split 2004-2007
Table 128 Sales of Vodka by Premium/Super-premium Split 2004-2007
Table 129 Sales of Flavoured vs Non-flavoured Vodka 2004-2007
Table 130 Spirits Production, Imports and Exports: Total Volume 2001-2006
Table 131 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2006
Table 132 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2006
Table 133 Vodka Production, Imports and Exports: Total Volume 2001-2006
Table 134 Gin Production, Imports and Exports: Total Volume 2001-2006
Table 135 Rum Production, Imports and Exports: Total Volume 2001-2006
Table 136 Liqueurs Production: Total Volume 2001-2006
Table 137 Company Shares of Spirits by National Brand Owner 2002-2006
Table 138 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 139 Brand Shares of Spirits 2003-2006
Table 140 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 141 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 142 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 143 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012