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Wine with low alcohol, the end of the monopoly in Finland is good news for Italy

The trade in alcoholic beverages, hitherto under state control, has been liberalised for products under eight degrees: positive news for Italian producers who are hoping for similar openings in other Scandinavian countries

by Giorgio dell'Orefice

3' min read

3' min read

Excellent news for Italian wine caught between declining international consumption and health offensives. Last June in Finland a law voted by the Helsinki Parliament came into force that liberalises the trade in naturally fermented alcoholic beverages up to 8 degrees.

Finland (5.5 million inhabitants, 30 million bottles of wine imported per year from Italy and a per capita consumption of 10 litres) is not a strategic market for Italian wine, however, the decision may open up new spaces for low alcohol and zero alcohol products for wine in general.

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In Northern European countries (Finland, Sweden, Norway and Iceland) the sale of alcohol is not free but is managed by the state through a public monopoly. A bit like in Italy with tobacco. And this decision of the Finnish Parliament may open a breach in a regime that has so far been defended to the hilt.

In essence, alcoholic products obtained by natural fermentation such as wine, ciders, beer and de-alculated products with an alcohol content of less than 8 degrees can also be marketed in the large-scale retail trade and no longer have to pass through the public monopoly. This is an important novelty especially for a country like Italy, which boasts wine labels with naturally reduced alcohol content and which fall into the newly liberalised category.

A real competitive advantage considering thatother producing countries such as France and Spain do not have wines below 8 degrees and in order to seize the opportunities opened up by the Finnish law, they must necessarily deal.

The effects of the law were immediate. 'In just two months,' explains Petri Viglione, who with the company Winital has been bringing Italian wines to Finland since '92 (today he imports about 500 thousand bottles a year with an 8% market share), 'the share of large-scale distribution in wine sales has gone from zero to 15%. This share is divided equally (with about 45% each) between the Kesko (private) and Sok (cooperative) chains, while the remaining 10% is held by Lidl. This is undoubtedly a great opportunity for Italy, which boasts product categories that naturally fall under 8 degrees alcohol, such as Lambrusco, which is sold here both red, rosé and white (the latter type not existing in Italy) or Moscato d'Asti'.

But according to the Italo-Finnish importer, this decision not only immediately opens up new market opportunities ('the Italian wines I used to bring here could only be sold to restaurants or to the monopoly,' says Viglione), but could in perspective mark a real paradigm shift. "For years I have been trying to make people understand,' adds Petri Viglione, 'that wine is an agricultural product that finds its exaltation in the combination with food, and that for this reason it is profoundly different from spirits. We are registering some results. In Finland, for example, Lambrusco is considered to be the best accompaniment for one of the country's most popular foods, pizza, due to its characteristics of marked acidity, fruity hints and the fact that it is lightly sparkling. It may make some purists smile, but in reality it is a big step forward'.

Until a few years ago in Finland, only naturally fermented beverages under 4.5 degrees alcohol could be marketed outside the monopoly. In 2018, this was increased to 5.5 and now to 8. 'Within a few years,' adds the Italian importer, 'we may get to liberalise a large part of Italian wine.In Sweden, on the other hand, they are still stuck at 3.5 degrees. Everything above that threshold is managed by Systembolaget, the Swedish monopoly. Norway and Iceland also have restrictive rules. But monopolies talk to each other and I am confident that others will also follow us especially on the concept of food pairing. Only in this way will it be possible to make people understand that wine is an agricultural product and profoundly different from other alcoholic beverages'.

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