Sweden to legalise yard sales in June – with major restrictions

Sweden | For more than 20 years the legalisation of cellar door sales or yard sales at small breweries, wineries and distilleries has been deliberated, but successive governments just kicked the can down the road. No one dared impinge on the alcohol monopoly of the state-owned retailer Systembolaget, the guardian of public health. Now things might move quickly. The Swedish parliament is expected to vote on the government’s “freedom reform” bill at the end of April. If all goes to plan, it could become law on 1 June.

Presently, brewery visits and tastings are permitted, however the purchase of a few bottles is prohibited. According to the retail monopoly introduced in 1955, only Systembolaget can sell drinks with more than 3.5 percent ABV.

Yard sales have been an ongoing issue because it puts Sweden’s strict alcohol policy to the test. In 2018, a narrow parliamentary majority instructed the government to liberalise yard sales but the centre-left coalition shelved the unpopular task. After the change in government in 2022, the oppositional Centerpartiet (Centre Party) actively pushed for it. Nothing happened until mid-January this year, when the centre-right minority coalition government of Prime Minister Ulf Kristersson submitted a bill which still needs the blessing of parliament.

Restrictions galore

Because anti-alcohol lobbyists fear that yard sales will spell the demise of Sweden’s successful public health policies, the Minister of Social Affairs, Jakob Forssmed, emphasised that the bill is not about increasing alcohol sales, but about stimulating tourism in rural areas. The liberalisation is intended to allow around 600 microbreweries, wineries, cideries and distilleries to sell their products directly to customers - albeit subject to tough conditions.

The bill includes a whole series of restrictions which could deter potential buyers and suppliers. These include caps on how much punters can buy: 0.7 litre of spirits, or 3 litres each of wine, beer and other alcoholic beverages. The sale must be in connection with a tour of the premises, a tasting session, or “a knowledge-raising visit arrangement” (a lecture) that will also have a “certain duration” and be subject to a fee. It has been calculated that the average price for a tour should be SEK 232 (USD 22), that a lecture should average SEK 793 and a tasting SEK 577. These may not take place in the evening: yard sales will only be permitted between 10am and 8pm on weekdays.

As if this were not enough, there are also restrictions for suppliers. Only those who produce less than 75,000 litres of spirits, 400,000 litres of beer or 200,000 litres of wine or strong beer annually are allowed to sell directly. Medium-sized regional producers with 10 to 20 employees are excluded and must continue to sell their bottles exclusively via Systembolaget.

The biggest restriction concerns the duration of the law. The new legislation initially applies for six years, after which it will be reviewed.

Compulsory lecture against alcohol

The Centre Party is far from happy. In a motion (5 February) it criticises the limited time frame. “Many small producers probably won’t dare invest in a salesroom, when the legislation could be gone in six years’ time.” It also opposes the government setting the fees, which interferes with the principle of free enterprise. Above all, it contests that alcohol producers must provide information on the negative effects of alcohol consumption, as this does not apply to Systembolaget’s personnel. “The Centre Party believes that it is the responsibility of the authorities to disclose the harmful effects of alcohol and must not be imposed on small producers wanting to do yard sales.”

In view of the many restrictions, the draft law to liberalise yard sales, which was praised by the Prime Minister Ulf Kristersson as a “long-awaited freedom reform”, is anything but. It is tokenism. The so-called liberalisation of yard sales, which comes with so many conditions, renders its realisation almost impossible.

The Swedish government is convinced that the EU will tolerate the restrictive law. The EU Commission has refrained from issuing an opinion, which is interpreted as a green light. Whether the bill makes it through parliament is another issue.

Yard sales in Ireland

Judging from the Irish experience, it appears unlikely that many producers in Sweden will embrace yard sales in large numbers. In the Republic of Ireland, where a “producer's retail licence” was introduced in 2018, which allows breweries and distilleries to sell alcohol to visitors, few applied for it. Instead, small alcohol producers sought a proper on-premise licence because it meant fewer restrictions and less hassle. In February, three breweries held producer's off-sales licences and four had producer's on-sales licences – out of 78 craft breweries. That adds up to merely 10 percent of Ireland’s microbreweries with some sort of retail licence. The take-up is higher among distilleries. Under the 2018 act, visitors must complete a ticketed guided tour and the premises must close by 7pm.