The Finnish parliament has voted to raise the maximum alcohol content limit for drinks sold in supermarkets from 5.5% to 8% ABV.

According to Helsinki Times, the government bill to increase the alcohol content permitted in beverages sold in supermarkets received 102 votes in favor and 80 votes against from ministers.

The amended limit will not affect RTDs, long drinks, and other mixed alcoholic beverages, which will remain capped at 5.5% ABV.

The decision comes in the wake of recent alcohol-related developments in Sweden, where the government has proposed permitting the sale of alcohol at small-scale breweries, distilleries, and wineries.

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Finland, akin to its Nordic counterparts, operates under an alcohol monopoly system. This means that grocery stores and supermarkets are restricted to selling beverages with an ABV of 4.7% or lower. Alko, the state-owned monopoly, handles the sale of beverages with an ABV higher than 4.7%.

The sole exception to this regulation has been locally produced beverages, which can be sold by the farmer who crafted them with a maximum ABV of 13%.

Impact on Alcohol Market Dynamics:

The alteration in the law impacts roughly 4% of Alko’s sales volume. However, Alko informed that the amendment could potentially decrease its sales volume by approximately 6-11%, as it might also affect the sales of “traditional wine”.

Anu Koskinen, Executive Vice President of Assortment and Procurement at Alko, said, “The estimation is uncertain – it remains to be seen how consumers embrace the new products, how their purchasing patterns evolve, the pricing of the new products, and the extent of the store’s product range.”

Koskinen stated, “The sales points will multiply by twelve, and the sales hours will extend by 20%. However, expanding the availability of stronger alcoholic beverages also comes with a human cost.”

“It’s important to bear in mind that alcohol isn’t just an ordinary product; it carries harmful effects on society as a whole and also incurs billions in costs in Finland.”

“Based on international research and findings from the World Health Organization (WHO), the most effective methods for preventing alcohol-related harm involve influencing the availability, pricing, and marketing of alcohol. Introducing stronger alcoholic beverages for sale in grocery stores normalizes alcohol consumption and amplifies the societal costs associated with alcohol-related harm,” she emphasized.

Finnish national news outlet Helsingin Sanomat indicated that the regulation would come into force on Monday, June 10th, pending approval by President Alexander Stubb on June 7th.

According to Helsingin Sanomat, Kesko and S Group, two of Finland’s major retailers, aim to introduce the stronger alcoholic beverages as swiftly as possible.

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Aki Erkkilä, Director of Sales and Procurement at Kesko, expressed, “Our plan is to commence deliveries to stores promptly once the law has been enacted post-approval. Ideally, these new products will be accessible on the very day.”

Heidi Salmi, Head of Product Category at S Group, mentioned that the retailer had been “anticipating the amendment for a while.”

“After this regulation goes into effect, we’ll try to get the new products into outlets as soon as possible. We have a modest stock of them,” she stated.

The Federation of the Brewing and Soft Drinks Industry in Finland voiced its opposition to the differentiation in treatment of beverages with comparable alcohol content based on their production methods. It argued that this approach would grant a substantial competitive edge to fermented beverages in the Finnish market.