Beer in Finland
Euromonitor International's Beer 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.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 68 | Publication date: Feb 2009
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- 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
Dark beer; Lager by origin; Lager by price platform; Low/non- alcohol beer; Stout
Executive summary
Beer sales in Finland recorded a volume decline in 2008 due to higher prices, mainly as a result of increased alcohol taxes.
By the same token, current value sales saw a jump in 2008 due to the tax increase, but also a number of other factors. Beer consumer prices were accelerating due to increases in barley and other raw material prices as well as salaries in Finland. The prohibition of discounts on multipacks also contributed to rising unit prices in 2008. According to the new law, the price per beer bottle in multipacks cannot be sold at a lower price than a single bottle in the same store. Finally, demand for premium products is increasing, which is further contributing to upward pressure on average unit prices. All in all, value sales showed much stronger growth in 2008 than in 2007 and the review period average.
Premium imported lager was most dynamic in 2008. This was illustrative of the premium segment, where volume growth rates were as high as 20% in 2008. However, they still account for only a fraction of total beer sales. The fast growth rates have made breweries introduce many new products to their portfolios. Imported premium beers in particular saw a number of new launches during the past year, including products such as Franziskaner beers in Sinebrychoff Oy AB’s portfolio and Kronenbourg 1664 in Hartwall Oy AB’s. In the forecast period, the sales of premium products will rise further and consumers will choose their favourites within the premium price band.
Standard lagers account for most of total sales, while dark beer sales are still relatively small. However, trade sources state that manufacturers have a keen interest in developing their premium and speciality product portfolios, both domestic and imported. Brand Manager for Hartwall Oy AB’s premium beers, Pekko Koski, reveals that, although speciality beer still only accounts for about 2% of total value sales, it grew by around 24% in 2007, and is predicted to double its share of total beer sales by 2010. Consumers are clearly showing increasing interest in these products. It is a good time for launching products as consumers are trying out different product types. At the beginning of 2008, for example, Hartwall expanded its premium product range with Czech Krušovice beers. These have been produced in a small Bohemian town near Prague for over 400 years.
Top-fermented beer recorded high growth rates in 2008 and saw several launches during 2007 and 2008. For example, in 2007 Hartwall Oy AB relaunched its premium 1836 Classic line, expanding it further in 2008, with, for example, a Chocolate Porter. Now, three types are positioned under the 1836 Classic label: porter, white lager and all-malt lager. Sales of top-fermented beer will be rising further in 2009 when the full effects of the ban on discounted standard multipack beers is felt. The new law will move prices of standard lager and premium top-fermented beer closer to each other.
Unlike standard lager, top-fermented dark beer has a high proportion of sales in the on-trade. In 2008, the sales were divided almost 50:50 between the on- and off-trade. Brewery restaurants and pubs have gained popularity during the past 10 years, and the trend will also be on the rise in the forecast period.
There is a clear trend that the packaging of off-trade products is changing from a glass bottle to a can, and bottle packaging is reserved for premium on-trade products. The shift from glass bottles to cans is still going on and in 2008 cans overtook bottles. For example, the formerly very popular crates of 24 bottles of beer are being replaced by cardboard cases of 24 cans in 2008.
STTV and Alko Oy statistics show that Alko Oy and on-trade sales comprise only 23% of total beer sales. These two channels are the only ones licensed to sell beer with an alcoholic percentage of over 4.7%. As most sales take place in super- and hypermarkets, the most common alcohol content for beer is 4.7%. Weaker beers are launched every now and then, but they have not been able to gain any significant share.
According to trade sources, there is a demand for low-calorie beer, but at the same time beer drinkers are not willing to compromise on the taste and alcohol content. For this reason, not a single low-calorie beer brand has managed to take off so far. Leading brewery Sinebrychoff Oy AB made a new drive for low-calorie beers in early 2008, launching two new products (Koff Lite and Carlsberg Lite) and supporting these with advertising campaigns on national television.
Production, Imports and Exports
The sales of imported premium beer are on the rise. Speciality beer is still immature in Finland, and consumers are trying different products. In imported beer, only Czech beer has an established position in the Finnish market. There are opportunities in speciality beer, and that is exactly why many new brands and types of imported beer were launched in Finland in 2007.
In 2008, imported beer was either premium or economy. Due to domestic standard lager price competition there was no room in the market for imports of standard beer. When the full effect of the 2008 tax rise has been seen, the share of economy beer is predicted to grow even further.
The two biggest breweries, Hartwall and Sinebrychoff, are nowadays owned by multinational companies, and there is a clear trend towards importing the products of the owner company. Hartwall Oy AB has invested a lot in advertising the Scottish & Newcastle-owned Foster’s brand. 2007 launches included Foster’s Twist in the on-trade. The same can be said about Oy Sinebrychoff’s advertising campaigns for Carlsberg.
In 2008, Finnish breweries were looking for export opportunities for beer that suits people with coeliac disease. For example, Sinebrychoff Oy AB and Laitilan Wirvoitusjuomatehdas Oy have been promoting their products abroad.
Table of contents
ALCOHOLIC DRINKS IN FINLAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Volume sales decline as a reaction to the tax increase in early 2008
Consumer prices set to increase
Sinebrychoff Oy AB leads an increasingly competitive market
On-trade channel takes another round of pounding in 2008
Consumer prices predicted to accelerate leading to slower volume growth
KEY TRENDS AND DEVELOPMENTS
Alcohol tax increased in January 2008
Finland’s economy remains strong but GDP growth will slow down
PET and cans invade packaging following abolition of environmental tax
Private label sales enter with brisk pace
Strong demand for low-calorie products
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Effects on Alko’s retail prices following the 2008 tax increase
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2008 (after tax increase)
Table 3 Taxation and Duty Levies on Alcoholic Drinks 2007 (prior to 2008 tax increase)
Table 4 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 5 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 6 Selling Margin of a Typical Imported Wine Brand 2008
Table 7 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
OPERATING ENVIRONMENT
Table 8 Consumption of Alcoholic Drinks In Finland by 100% Pure Alcohol in 2003-2007
Table 9 Number of On-trade Establishments by Type 2004-2007
MARKET INDICATORS
Table 10 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 11 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 14 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 17 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 18 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 19 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 20 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 21 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 22 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 24 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 25 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - FINLAND
ALTIA OYJ - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Altia Oyj: Key Facts
Summary 4 Altia Oyj: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 5 Altia Oyj: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Altia Oyj: Competitive Position 2007
HARTWALL OY AB - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Hartwall Oy AB: Key Facts
Summary 8 Hartwall Oy AB: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Hartwall Oy AB: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 10 Hartwall Oy AB: Competitive Position 2007
NOKIAN PANIMO OY - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Nokian Panimo Oy: Key Facts
Summary 12 Nokian Panimo Oy: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 13 Nokian Panimo Oy: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 14 Nokian Panimo Oy: Competitive Position 2007
OLVI OYJ - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Olvi Oyj: Key Facts
Summary 16 Olvi Oyj: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 17 Olvi Oyj: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 18 Olvi Oyj: Competitive Position 2007
SINEBRYCHOFF OY AB - ALCOHOLIC DRINKS - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Sinebrychoff Oy AB: Key Facts
Summary 20 Sinebrychoff Oy AB: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 21 Sinebrychoff Oy AB: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 22 Sinebrychoff Oy AB: Competitive Position 2007
BEER IN FINLAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 23 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 26 Sales of Beer by Subsector: Total Volume 2003-2008
Table 27 Sales of Beer by Subsector: Total Value 2003-2008
Table 28 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 29 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 32 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 33 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 34 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 35 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 36 Beer Exports by Country of Destination: Total Value 2002-2007
Table 37 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 38 Beer Imports by Country of Origin: Total Value 2002-2007
Table 39 Company Shares of Beer by National Brand Owner 2003-2007
Table 40 Company Shares of Beer by Global Brand Owner 2003-2007
Table 41 Brand Shares of Beer 2004-2007
Table 42 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 43 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 44 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 45 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013