Scandeat Food & Beverage Group now launches Mittegetvin AB a Swedish wine importer company based on a cooperative business model. Additionally, we want to offer a e-commerce solution Scandeat.vin that focuses on products and services that Systembolaget does not offer customers. We like to call our project a new form of Swedish wine business with hybrid functionality. 

Systembolaget is unique in the world with its monopoly and being wholly owned by the state. They currently have 445 stores, 5,800 employees and more than 700 active beverage suppliers. Turnover is SEK 32.2 billion from over 125 million store visits last year. 

Some highlights:

  • 205 million liters of wine with a value of SEK 21.2 billion were sold.
  • E-commerce today accounts for about 3% but is expected to be 10-15% in a few years.
  • There are approximately 1,680 (13% of the range) wines available in the fixed range which account for a whopping 96.2% of the volume sold.
  • Red wines are clearly the most popular and account for 48% of liters sold, followed by 31% for white wines.
  • Italy is the best-selling country with 28% of the volume followed by France at 14% and Spain at 11.8%.
  • Bulgaria is the fastest growing country with +27% increase overall in volume and 81% for red wines. Only 26 products last year and 92% of sales came from bag-in-box.
  • The 20 largest suppliers account for 55% of the supply in the fixed range and 65% of all sales.
  • The average price for all wine sold is SEK 103.43 per liter, which corresponds to SEK 78 for a standard bottle of 750 ml.

Suppliers

Systembolaget likes to talk about the breadth of its range and that their 1,200 suppliers offer drinks from 5,000 producers around the world. Even if this is true, their shelves are dominated by a number of larger suppliers. In 2022, there were twelve suppliers who all had a turnover of more than SEK 500 million. The twenty largest suppliers together have 64.4% of sales. Their products (2,470, 16% of the entire range) account for more than every second wine sold in the fixed range. Consistently, many have a high proportion of bulk sales with bag-in-box (BIB).

Producenter

It is a similar situation among producers and the twenty largest had a turnover of SEK 5.5 billion last year, which is 26.1% of total sales. In other words, 20 producers (0.4% of 4,100 producers) account for 26.1% of sales. Here, too, a very high proportion of bulk sales with 68.1% of the total being boxed wine (BIB). Seven of the twenty largest have over 80% of their sales from boxed wine.

How we want to make a difference 

We believe that for the biggest importers of wine in Sweden the profitability and their financial goals are much more important than the quality of the wine, especially in the most popular (low cost) product segments including BIB wine and celebrity wines. 

Our strategy is to offer better wines in the best selling segments at the same price as traditional importers selling their low quality products. How? By creating an import business from scratch where focus is on paying more to wine farmers and less money to shareholders.

We can already present wines that give consumers better wine in their glasses in the same price range as the most popular wines sold at Systembolaget, simply by changing the allocation of our revenues a few percent.   Stefan Gåhlin Founder/CEO

Swedish retail market (problems) 

  • Small wine producers have no possibility to make it into the fixed wine selection of Systembolaget where 92% of all products are sold. 
  • Discounted marketing campaigns that are used to introduce new wines and producers to the market and that are widely successful all over world are not possible (legal) at Systembolaget.
  • 50,08% of all wine sales is Bag-in-the-box and most of these are poor quality bulk wines while market analysis tells us that consumers are getting rapidly more conscious about what they drink. 

Swedish market (opportunities) 

  • An import business with a new allocation of revenue with more money spent on the products and with less money spent on shareholder dividends.
  • A next generation e-commerce solution that has a more cost effective delivery strategy and focuses on wines in the pricier segments and from smaller high quality producers.