Nordic ALCOHOL and DRUG policy network
NordAN
Finland
Government of Finland
The Orpo Cabinet, the 77th government of Finland, was officially appointed on June 20, 2023, following the parliamentary elections earlier that year. Headed by Petteri Orpo, the new coalition government comprises members from the National Coalition Party, Finns Party, Swedish People's Party, and the Christian Democrats. The cabinet's 19 ministerial positions are distributed among these parties, with the National Coalition holding eight posts, the Finns Party seven, the Swedish People's Party three, and the Christian Democrats one. The government has outlined plans to tighten rules for permanent residence and citizenship, aiming to integrate 100,000 new workers through social security and labour market reforms, alongside increased investment in research, development, and rail infrastructure.
Riikka Purra, chair of the Finns Party, supported joining the coalition due to the government's tougher stance on immigration and a more pragmatic approach to climate policy. Anna-Maja Henriksson, chair of the Swedish People's Party, highlighted the commitment to maintaining the status of the Swedish language in Finland. Despite initial disagreements with the Finns Party on several issues, Henriksson acknowledged the surprising yet collaborative outcome of their inclusion in the same government. The coalition's agenda also includes efforts to reduce the influence of trade unions and a more stringent criminal policy.
Political analysts say the Orpo Cabinet is Finland’s most right-wing government since World War II.
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Governments alcohol policy plans
​The Orpo Cabinet's policy on alcohol signifies a shift towards liberalization and increased market competition. The government's coalition agreement, adopted in June 2023, outlines several significant changes to the current alcohol laws. One notable reform is the increase in the maximum alcohol content for beverages sold in grocery stores from 5.5 per cent to eight per cent, although this applies only to drinks produced through fermentation. Additionally, the government plans to conduct a study by the mid-term review on the potential liberalization of wine sales with up to 15 per cent alcohol content, which could open the retail sector for stronger wines currently only available from Alko, the state-run alcohol monopoly.
Further proposals include easing restrictions for local small-scale and artisanal breweries, distilleries, and vineyards, allowing them to sell their products directly to consumers from their production sites, provided they have a retail sales license. The government also aims to clarify the legality of purchasing alcohol from other EU countries through distance selling procedures. In terms of taxation, there will be a decrease in beer taxes, which is expected to reduce state revenue by 25 million euros, counterbalanced by an increase in taxes on spirits and wine, projected to generate an additional 40 million euros. Nicotine pouches will also come under the tobacco law and be taxed similarly to nicotine-containing e-cigarette liquids. These reforms mark a significant departure from Finland's traditionally strict alcohol regulations, moving towards a more liberalized approach, though they face opposition from health experts concerned about potential public health impacts.
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Recent developments in Finnish alcohol policy under the Orpo Cabinet
The Finnish parliament has taken significant steps to further dismantle the country's longstanding alcohol monopoly. On June 5, 2024, a pivotal vote permitted supermarkets to sell fermented alcoholic beverages with up to 8 per cent alcohol by volume (ABV), an increase from the previous limit of 5.5 per cent. This legislative change, which came into effect on June 10, 2024, aims to align Finland's alcohol policies more closely with broader European standards. This move follows the 2018 amendment that allowed restaurants to sell takeaway alcohol and enabled supermarkets to sell beverages with up to 5.5 per cent ABV. Additionally, Alko, Finland’s state-run alcohol retailer, extended its opening hours and started organizing wine auctions as part of the earlier reforms.
In further efforts to modernize alcohol regulation, the Ministry of Social Affairs and Health has proposed a legislative amendment to permit the delivery of alcoholic beverages from online retailers to consumers. This proposal, currently open for public comment until August 30, 2024, aligns with the government’s program to liberalize alcohol sales. Under the new proposal, fermented beverages containing up to 8 per cent alcohol and other drinks up to 5.5 per cent could be ordered from domestic retail outlets, while stronger beverages would remain available through Alko. Delivery services would require a separate licence, and stringent measures would be in place to prevent sales to minors or heavily intoxicated individuals, including the use of strong electronic age verification.
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Alcohol consumption trends
Alcohol consumption in Finland continued its downward trend in 2023, with total consumption of alcoholic beverages dropping to 8.7 liters of pure alcohol per capita among those aged 15 and over. This represents a 2.4 percent decrease from 2022, according to the latest statistics from the Finnish Institute for Health and Welfare (THL). The decline in consumption, ongoing since 2007, includes retail and on-premises sales, as well as alcohol brought into the country by Finns and online purchases. Despite the overall decrease, regional differences persist, with higher sales in Northern and Eastern Finland, partly driven by tourism and summer residents.
In contrast, alcohol sales in Western Finland and the welfare areas of Southern, Central, and Northern Ostrobothnia remain below the national average. Retail sales, which make up the bulk of total consumption, decreased by 3 percent in 2023, while purchases from foreign online stores saw a significant 62 percent drop. However, on-premises consumption in restaurants and travel imports increased, indicating a shift back to pre-COVID-19 purchasing patterns. Notably, the consumption of mixed drinks rose by nearly 15 percent, while other beverage categories saw a decline, with beer remaining the largest category at 46 percent of total consumption.
Prime minister Petteri Orpo
Photographer: Lauri Heikkinen, valtioneuvoston kanslia
Alcohol taxation in Finland
In Finland, excise duty on alcohol and alcoholic beverages is levied on products that are manufactured within the country or imported from other EU countries or non-EU countries. The duty applies to alcohol manufacturers and importers, who must pay the excise duty when the products are either imported to Finland or released for consumption from a duty suspension arrangement. The range of products subject to excise duty includes beers and other malt drinks containing more than 0.5% alcohol by volume, wines and other fermented alcoholic beverages, intermediate products containing up to 22% alcohol by volume (such as fortified wines), and ethyl alcohol products containing more than 1.2% alcohol by volume (such as spirits and liqueurs). Some products, like strongly denatured ethanol and mildly denatured products used in manufacturing non-consumable items, are exempt from excise duty.
The excise duty on alcoholic beverages in Finland is determined based on the alcohol content, the type of beverage, and the quantity. Tax rates vary by product category and are calculated to two decimal points without rounding. As of 2024, Finland imposes some of the highest excise duties on beer in the EU, with a tax rate of €0.63 per 330ml bottle, significantly higher than countries like the United Kingdom and Ireland, which levy around €0.37 per bottle. These excise duties are in addition to the value-added tax (VAT) charged on the sales value of the beverage.
At the start of 2024, significant changes were made to the alcohol tax structure in Finland. The excise duty on wines and other fermented beverages containing over 5.5% alcohol by volume increased by approximately 8.3%, while the tax on intermediate products such as fortified wines rose by about 12.7%. This adjustment means that the excise duty for a standard 75cl bottle of wine with 8-15% alcohol content now stands at €3.42, contributing an additional €0.32 to the price, inclusive of VAT. In contrast, the excise duty on spirits, other strong beverages, long drinks, and other ethyl alcohol-based mixed drinks saw an increase of around 8.8%. Notably, the tax on beer was reduced by about 4.9%, whereas the tax on other alcoholic beverages remained unchanged.
Alcohol Availability in Finland
Key points:
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Alko is the state alcohol monopoly in Finland, responsible for retailing beverages over 8.0% ABV.
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The age limit for purchasing alcohol is 18 for beverages up to 22% ABV and 20 for stronger beverages.
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Alcohol retail sales are allowed from 9:00 to 21:00 on weekdays, 9:00 to 18:00 on Saturdays, and not permitted on Sundays.
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In Finland, significant changes to the alcohol availability landscape were introduced on January 1, 2018. The maximum strength of alcoholic beverages that could be sold in retail stores was increased to 5.5% alcohol by volume, lifting the previous limit of 4.7% that had been in place since the 1960s. This change allowed grocery shops, kiosks, and petrol stations to sell strong beers, ciders, and long drink beverages produced by adding strong alcoholic beverages. Additionally, independent breweries and microbreweries gained the right to sell their craft beers directly at the brewery, similar to fruit wine and sahti producers. Microbreweries were allowed to produce up to 500,000 liters of alcoholic beverages annually. Other changes included allowing existing mobile stores the right to sell alcoholic beverages and extending Alko's store hours from 20:00 to 21:00, along with the ability to organize wine auctions.
Recent changes and current regulations
Further liberalization occurred in June 2024, when the Finnish parliament approved a government proposal to raise the alcohol content limit for fermented beverages sold in licensed retail outlets to 8.0% ABV. This change, effective from June 10, 2024, permits daily grocery stores to sell stronger beers, ciders, and wines, which previously could only be sold by Alko, the state alcohol monopoly, for beverages over 5.5% ABV.
Under Finnish law, individuals aged 18 and over can purchase mild alcoholic beverages containing up to 22% alcohol, while those aged 20 and over can buy all types of alcoholic beverages. Alcohol sales are strictly prohibited to minors, clearly intoxicated individuals, or those behaving disruptively.
Role and regulations of Alko Inc.
Alko Inc., established in 1932, is Finland's national alcoholic beverage retailing monopoly. It is the only entity permitted to retail beer over 8% ABV, wine (except from vineyards), and spirits. Alko is required by law to sell lower-alcohol content drinks and non-alcoholic alternatives, although supermarkets generally offer these products at lower prices. Alko operates under stringent regulations to ensure responsible sales, refusing service to minors, intoxicated individuals, or those suspected of purchasing for minors.
Alko's network includes 365 stores, all self-service, and an online shop that allows customers to order products for pickup. In 2020, Alko’s general selection included 5,405 products, with an additional 3,528 available for special order. Alko's sales of 100% alcohol by volume increased by 12.2% in 2020. The most common store hours are from 9:00 to 21:00 on weekdays and 9:00 to 18:00 on Saturdays, totaling an average of 69 hours per week.
Alcohol advertising regulations in Finland
Key points:
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Strong alcohol ads: Generally banned for strong alcoholic beverages (over 22% alcohol), with few exceptions.
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Mild alcohol ads: Allowed but must not target minors, link to improved performance, or show excessive drinking. TV/radio ads restricted to certain hours.
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Recent changes and social media: Amendments effective June 10, 2024, adjusted content limits. Social media ads must not target minors; influencers can't advertise strong alcohol for payment.
Alcohol advertising in Finland is primarily regulated under the Alcohol Act (1102/2017), which outlines comprehensive provisions to control the marketing of alcoholic beverages. The National Supervisory Authority for Welfare and Health (Valvira) is responsible for enforcing these regulations, ensuring that advertising practices do not encourage excessive consumption or target vulnerable populations, particularly minors. The Act includes specific definitions and restrictions on what constitutes advertising, indirect advertising, and promotional activities, aiming to mitigate the social and health impacts associated with alcohol consumption.
The Alcohol Act imposes several key restrictions on the advertising of alcoholic beverages. The marketing of strong alcoholic beverages (over 22% alcohol by volume) to consumers is generally prohibited, with limited exceptions for professional contexts and certain foreign publications. Mild alcoholic beverages (below 22% alcohol by volume) can be marketed but must adhere to strict guidelines that prohibit targeting minors, associating alcohol with improved performance or social success, and depicting excessive consumption positively. Advertising on television and radio is restricted between 7:00 a.m. and 10:00 p.m., and it is entirely banned in cinemas for films aimed at minors. The Act also bans alcohol advertisements in public places, such as streets and parks, and places specific constraints on how price lists and product catalogues are presented.
The most recent amendment to the Alcohol Act, which came into effect on June 10, 2024, adjusted the percentage limits for the retail sale of alcoholic beverages subject to authorization. This change prompted an update to the guidelines to ensure compliance with the new regulatory framework and to align with the EU’s Audiovisual Media Services Directive. The amendment reflects an ongoing effort to adapt regulations to new marketing practices and technological advancements. Regarding social media, the Act stipulates that alcohol advertising on these platforms must not target minors or encourage sharing of promotional content. Influencers and bloggers are prohibited from promoting strong alcoholic beverages if they receive any form of remuneration, ensuring that online content adheres to the same stringent standards as traditional media.