Nordic ALCOHOL and DRUG policy network
NordAN
SWEDEN
Political situation
The Kristersson cabinet, Sweden's 57th government, was formed in October 2022 following the general election, with Ulf Kristersson of the Moderate Party becoming Prime Minister. This coalition government consists of the Moderate Party, Christian Democrats, and Liberals, supported by the Sweden Democrats through the Tidö Agreement. This agreement outlines the coalition’s governance strategy and policy plans. Notably, this coalition marks the first time the Sweden Democrats have had direct influence on government policy. The Tidö Agreement was finalized after a month of negotiations, ensuring a narrow parliamentary majority for the coalition.
Key policy areas outlined in the Tidö Agreement include economic reforms aimed at reducing administrative costs for businesses, lowering taxes for low and middle-income earners, and addressing high electricity prices. The government also plans to implement significant measures to combat crime, including tougher penalties and new policing strategies. Additionally, the agreement calls for stricter migration policies and reforms in healthcare aimed at reducing wait times and improving accessibility. These comprehensive reforms could influence public health policies broadly, including areas related to alcohol regulation and public health initiatives. The coalition’s approach has sparked criticism from various human rights and environmental groups, as well as from European lawmakers and Swedish opposition leaders.
Prime minister Ulf Kristersson
Photo: Ninni Andersson/Government Offices of Sweden
Farm sales plan
The Kristersson cabinet has initiated significant changes to Sweden's agricultural and food policy, aiming to enhance the sector's competitiveness and profitability. To support these goals, a new Ministry of Rural Affairs and Infrastructure has been established. One legislative proposal is to introduce direct alcohol sales from farms, which marks a departure from Systembolaget's current strict monopoly. This proposal is intended to support small-scale alcohol producers by allowing them to sell their products directly to visiting customers, thereby fostering local businesses and tourism.
In June 2024, the government announced plans to allow small-scale breweries, distilleries, and winemakers to sell their alcoholic beverages directly to consumers visiting their premises. This change necessitates easing the country's alcohol monopoly, which currently only allows Systembolaget to sell alcohol for off-premise consumption. The proposed legislation, now under review by the European Commission, aims to be implemented in the first half of 2025. The new regulations will permit limited on-site sales to consumers participating in organized tours or tastings, subject to stringent conditions to ensure compliance with Sweden's alcohol and public health policies. These measures are designed to boost local economies while maintaining control over alcohol distribution and consumption.
This proposal, allowing entities other than Systembolaget to sell alcohol directly to customers, threatens the exemption from EU law that Systembolaget currently enjoys due to its monopoly status. "Introducing farm sales is to dismantle Systembolaget's monopoly. It means abolishing our most important tool for reducing harm and suffering caused by alcohol," says Lucas Nilsson, President of IOGT-NTO. Despite criticism from referral bodies and EU law experts about the legal challenges, the government has chosen to proceed, raising concerns about the potential impact on public health.
More information: EU legal analysis of the farm sales investigation by IOGT-NTO
Alcohol consumption trends in Sweden
In recent years, Sweden has observed fluctuating trends in alcohol consumption. According to recent data, the total alcohol consumption in 2023 was approximately 8.6 liters of pure alcohol per capita for those aged 15 and older, which represents a decrease of 2.7% compared to 2022. This marks one of the largest annual declines since 2014, excluding the pandemic year of 2020. Despite this annual decrease, the consumption levels in 2023 were still 4.5% lower than those in 2019. The registered alcohol consumption, which includes sales through Systembolaget, restaurants, and grocery stores, accounted for about 86% of the total consumption in 2023, up from 85.1% in 2022.
The registered alcohol sales in 2023 showed mixed dynamics. Systembolaget’s sales decreased by 1.8%, while the sales of folk beer dropped by 7%. However, the restaurant sector experienced a slight increase, with sales rising by 1% compared to 2022. When compared to the pre-pandemic year of 2019, the registered consumption in 2023 was 3.3% higher, driven by a 4.6% increase in Systembolaget's sales and a 5% rise in restaurant sales, despite a notable decline in folk beer sales by 17%.
On the other hand, the unregistered alcohol consumption, which includes smuggled alcohol, home production, and purchases abroad, also presented notable changes. In 2023, unregistered consumption decreased by about 9% compared to 2022, reaching 1.2 liters of pure alcohol per capita. This decline was primarily driven by a 11% drop in traveler imports and a 3% decrease in home production. However, the purchase of smuggled alcohol saw a slight increase of 3% during the same period. Compared to 2019, the overall unregistered consumption in 2023 was about 35% lower, reflecting a long-term downward trend in these channels.
More information: CAN report "Alkoholkonsumtionen i Sverige 2001–2022"
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Alcohol taxation
Sweden has one of the highest alcohol prices in the European Union, largely due to the multiple taxes imposed on alcoholic beverages. These taxes include a Value Added Tax (VAT), an Alcohol Tax, and a surcharge added by Systembolaget, the government-owned chain of liquor stores. The VAT rate for alcoholic beverages in Sweden is 25 percent, contributing to 20 percent of the total sales price. Systembolaget adds a general surcharge of 14.7 percent on the purchase price, along with product-specific surcharges. For example, in 2023, the surcharge was 5.40 SEK for wine, 0.95 SEK for beer, and 6.37 SEK for spirits. Additionally, alcohol taxes are set for all drinks with 2.8 percent and higher alcohol by volume, with rates increasing slightly from 2023 to 2024.
The process of pricing an alcoholic beverage in Sweden involves several steps. For instance, for a bottle of wine priced at 99 SEK, the supplier sets a price of 44.80 SEK to Systembolaget. A general surcharge of 6.59 SEK and a product-specific surcharge of 5.40 SEK for wine are added, bringing the subtotal to 56.79 SEK. An alcohol tax of 22.19 SEK (based on 29.58 SEK per liter for wine) is then applied, resulting in a total of 78.98 SEK. After adding the VAT, which amounts to 19.74 SEK, the final consumer price reaches 99 SEK. This multi-layered taxation system ensures that the government captures significant revenue from alcohol sales while also aiming to regulate consumption through higher prices.
The specific alcohol taxes for different beverages in Sweden vary based on their alcohol content. For example, the excise duty for beer with more than 2.8 percent alcohol by volume is 2.28 SEK per liter per percentage of alcohol. For wine and other fermented beverages, the tax ranges from 10.38 SEK per liter for those with 2.25 to 4.5 percent alcohol by volume to 61.90 SEK per liter for wines with 15 to 18 percent alcohol by volume. Ethyl alcohol, such as vodka, has a much higher excise duty rate, set at 526.97 SEK per liter of pure alcohol. These taxes are calculated based on the volume and alcohol content, ensuring a higher tax burden for stronger alcoholic beverages, which aligns with Sweden's public health goals to minimize excessive alcohol consumption.
More information: Swedish Tax Agency
Alcohol availability
Systembolaget: the alcohol monopoly
Founded in 1955, Systembolaget is the state-owned company with the exclusive right to sell nearly all alcoholic beverages in Sweden, including spirits, wine, beer with an alcohol content above 3.5%, and cider with an alcohol content above 2.25%. The primary goal of this monopoly is to limit alcohol consumption, thereby promoting public health. There are approximately 450 Systembolaget stores across Sweden, complemented by 482 approved agents and a growing home delivery service. Alcoholic beverages can only be purchased by individuals aged 20 and above, aligning with the country's stringent alcohol policy. Despite its restrictive nature, Systembolaget enjoys significant public support, with a customer satisfaction rate of 81.9% in 2020 and 76% of the population backing the monopoly.
Legal drinking age and sales hours
In Sweden, the legal drinking age is set at 18 years for on-premise consumption in restaurants and bars, but rises to 20 years for off-premise purchases from Systembolaget stores. This dual age limit is designed to curb underage drinking and ensure that young adults are supervised when consuming alcohol in public settings. The most common opening hours for Systembolaget stores are 10:00-19:00 on weekdays and 10:00-15:00 on Saturdays, totaling 50 hours per week. These restricted hours are part of the broader strategy to limit alcohol availability and reduce excessive drinking. The relatively affordable prices and lower excise duties compared to other Nordic countries also make Systembolaget an attractive option for consumers.
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Recent developments
A significant policy change was announced recently, allowing Swedish vineyards, micro-breweries, and smaller distilleries to sell their products directly to visitors starting next year. This reform aims to grant more freedom to small-scale producers and align Sweden's alcohol regulations more closely with those of other European countries. Prime Minister Ulf Kristersson highlighted this change as a step towards increasing freedom and modernizing Sweden's approach to alcohol sales. Despite these updates, Systembolaget maintains its monopoly over the sale of stronger alcoholic beverages, while "Folköl" or "People’s beer" with up to 3.5% alcohol content continues to be available in grocery stores, gas stations, and kiosks.
More information : Systembolaget's Responsibility Report 2023
Alcohol advertising
Key points:
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Moderation: Ads must be moderate and not target under 25s.
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Content limits: Ads can't show groups/lifestyles or air on TV/radio for strong drinks.
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Health info: Ads must include harm warnings and focus only on the product.
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Up until 2003, all alcohol advertising was forbidden in Sweden. However, since then, the advertisement of alcohol has been legalized under certain restrictions. The Swedish Alcohol Act stipulates that all marketing of alcoholic beverages must be conducted with particular moderation, meaning it should not be intrusive, solicitous, or encourage excessive alcohol consumption. Additionally, all alcohol advertising must not target or depict children or young people under the age of 25. This law ensures that the promotion of alcohol is carried out responsibly and with the public's health in mind.
Specific restrictions on content and medium
The Swedish Alcohol Act imposes several specific restrictions on the content and medium of alcohol advertisements. Commercials for alcoholic beverages containing 15 vol.% or more are prohibited. Alcohol advertising in Sweden can only show the product and isn’t allowed to be linked to specific groups of people, attributes, or lifestyles. Moreover, commercial advertising for alcoholic beverages on television and radio is prohibited. Companies primarily engaged in the production or sale of alcohol are not allowed to sponsor television or radio programs. These measures aim to minimize the impact of alcohol advertising on public behavior and reduce the risk of alcohol misuse.
Advertising mediums and additional prohibitions
Further restrictions apply to the mediums through which alcohol can be marketed. Commercial advertisements for alcoholic beverages are not allowed in TV broadcasts, on-demand TV, or radio broadcasts. Additionally, advertisements must not be used in periodic publications or other written materials comparable to periodic publications unless these materials are available only at the point of sale for such beverages. When allowed, advertisements must focus solely on the product itself or its ingredients and must not portray high alcohol content as a positive attribute. All alcohol advertisements must also include clear information about the potential harms of alcohol consumption, alternating the messages if multiple advertisements are repeated.
These stringent regulations reflect Sweden’s commitment to controlling alcohol consumption and minimizing its negative impact on society through carefully regulated marketing practices.