Farmers’ Association takes fight for legalizing cellar door sales to EU
Beware of their pitchforks. The Swedish Farmers’ Association LRF has filed a complaints notification with the EU commission against the ban of cellar door sales in Sweden, local media reported on 18 September 2014.
LRF has been lobbying for the legalization of cellar door sales or “gårdsförsäljning” in Swedish (“farm sales”) for years, which currently fall foul of Sweden’s strict alcohol laws. Only the state monopolist retailer Systembolaget is allowed to sell beer, wines and spirits above 3.5 percent ABV.
The alcohol monopoly in Sweden is an exception to the EU free market directive that the Swedish government succeeded in negotiating when it joined the EU. The free market directive would normally forbid a monopoly. However, the Swedish government successfully argued that the alcohol monopoly was vital for protecting public health.
According to media reports, the LRF is only asking for the legalization of cellar door sales, not for abolishing Systembolaget’s monopoly.
Experts say a ruling by the EU may take several years.
There are an estimated 150 farms that produce wine in Sweden, plus about 125 small breweries. As it’s fairly hard to get a listing at Systembolaget, all of them would benefit greatly if they could sell their products across the yard to customers passing by.
Systembolaget boasts more than 400 stores, with a further 500 authorized retailers across the country serving smaller communities.
Its monopoly was first dealt a blow in 2007 when the European Union ruled that Swedes could buy wine over the internet from other European countries for their personal consumption.
From this ruling has sprung a number of companies that sell wine and spirits over the internet directly to Swedish consumers. The typical set-up is a company registered and based in another EU country, most likely in neighbouring Denmark. Swedish consumers can order their wines online, but need to make sure that they pay Swedish alcohol duty and VAT upon delivery.
Internet purchases of alcohol represent a niche. However, they challenge Systembolaget’s omnipotence.
