Required Report - public distribution

**Date:** 1/23/2006

**GAIN Report Number:** SW6001

SW6000

**Sweden**

**Wine**

**Annual**

**2006**

**Approved by:**

Margaret E. Thursland

![](media/image1.wmf)Agricultural Counselor

U.S. Embassy Stockholm

**Prepared by:**

Bettina Dahlbacka

Marketing Specialist

**Report Highlights:**

Table wine consumption continued to increase in Sweden in 2004, although
Systembolaget\'s monopoly wine retail sales dropped for the first time
in many years. New World wines are gaining market share at the expense
of wines from traditional European wine countries. Good market
opportunities exist for U.S. quality wines, as the lower dollar exchange
rate now makes it possible to compete with other New World wines.

Includes PSD Changes: No

Includes Trade Matrix: Yes

Annual Report

Stockholm \[SW1\]

\[SW\]

# 

# 

###### Table of Contents

# 

[**Executive Summary 3**](#executive-summary)

[Production 4](#production)

[Consumption 4](#consumption)

[Table 1. Swedish Private Alcohol Import Quotas (liters)
4](#table-1.-swedish-private-alcohol-import-quotas-liters)

[Table 2. Systembolaget's Wine Sales by Price Category in 2004
6](#table-2.-systembolagets-wine-sales-by-price-category-in-2004)

[Table 3. Systembolaget's Sales - Liter/Capita
6](#table-3.-systembolagets-sales---litercapita)

[Trade 6](#trade)

[Table 4. Systembolaget's Sales of Wines by Country (1,000 liters)
7](#table-4.-systembolagets-sales-of-wines-by-country-1000-liters)

[Table 5. Import Trade Matrix -- Table Wine 2204, 2205
7](#table-5.-import-trade-matrix-table-wine-2204-2205)

[Table 6. Average Import Price -- Table Wine 2204, 2205
8](#table-6.-average-import-price-table-wine-2204-2205)

[Policy 8](#policy)

[Table 7. The Swedish Alcohol Tax on Wines on January 1, 2005
9](#table-7.-the-swedish-alcohol-tax-on-wines-on-january-1-2005)

[Marketing 11](#marketing)

#   {#section-3 .unnumbered}

# Executive Summary

Table wine consumption continues to increase steadily in Sweden and has
more than doubled since 1970. In 2004, wine consumption accounted for
38% of the total alcohol consumption in Sweden. EU products still
dominate, but are loosing market share to New World wines. Good market
opportunities exist for quality wines as tastes and knowledge become
more sophisticated. After several years of declining sales, mostly due
to the strong dollar, U.S. exports are on the rise again. In 2004, U.S.
wine exports to Sweden increased to US\$ 8 million from US\$ 6.7 million
in 2003.

Retail sales of wine and liquor in Sweden continue to be restricted to a
government agency, Systembolaget. Systembolaget handles all
over-the-counter sales of wine, spirits, and full-strength beer through
some 400 liquor stores throughout Sweden. The Government of Sweden (GOS)
managed to retain the retail monopoly despite its accession to the EU in
1995, but had to relinquish its monopoly on importing, wholesaling,
production and exporting of wines and spirits. With the dissolution of
the import monopoly, more and more restaurants and caterers have started
to import directly.

Sweden retains one of the most restrictive alcohol regimes in Europe,
but in the past few years the rules have been challenged as Sweden is
under pressure from EU harmonization requirements. Consequently, Sweden
has been forced to increase private alcohol import quotas and reduce the
tax on wine. The EU is pushing the GOS to further reduce taxes as the
Commission still maintains that the tax scheme disadvantages imported
wine. Also, Sweden has been taken to the European Court of Justice over
its ban on individual purchase of wine via the Internet.

Systembolaget\'s monopoly retail sales have been falling steadily since
Sweden raised the limit on private alcohol imports on January 1, 2004.
The new quota allows Swedes to buy much cheaper alcohol from neighboring
countries. The situation has been aggravated by several other
developments in the region including the May 1, 2004 EU enlargement
which added new Member States including Poland and the nearby Baltic
States where alcohol sells at a fraction of the Swedish price. In
addition, Finland and Denmark have also reduced their tax on alcohol.

The GOS has traditionally favored high taxes on alcohol for public
health reasons. However, the Sweden is now facing a dilemma. If taxes
are cut to meet the competition, Sweden could consequently face the
possibility of increased alcohol consumption. If taxes are not cut,
Systembolaget's retail sales could continue to decline, cross-border
trade would continue and illegal resale would persist. On March 16,
2005, the Government's own "alcohol investigator" proposed a 40% tax
cut. A final decision has not been made, but a cut is likely to come.

Advertisements for alcoholic beverages were prohibited in Sweden until
February 2003 when a verdict by the Swedish Market Court cleared the way
for alcohol advertising in Swedish newspapers and magazines.
Subsequently, the Swedish Government passed new legislation banning
advertisements for alcoholic beverages stronger than 15 percent by
volume. A new strict law on alcohol advertising came into force on
January 1, 2005.

Following a three-year investigation into the bribery scandal within
Systembolaget, the first verdict against 18 Systembolaget store managers
was announced on December 19, 2005. The 18 store managers suspected of
accepting bribes from suppliers were fined between US\$ 375 and US\$
2,500. This was the first of five trials regarding the bribery scandal
at Systembolaget. In total, charges have been brought against 77
Systembolaget employees and 15 employees of three different suppliers.

Average Exchange Rate 2004: US\$ 1 = SEK 8.07

Average Exchange Rate 2005: US\$ 1 = SEK 7.46

# 

# Production

Sweden does not traditionally produce wine, although Sweden was
officially designated a wine-producing country by the European
Commission in 2000. There are however, some Swedish producers who work
with imported grape must. Furthermore, a few farmers have started to
grow grape vines for winemaking, although the climate in Sweden is not
considered suitable for viniculture.

# Consumption

For the first time in many years, Systembolaget's (retail) wine sales
dropped, from 136 million liters in 2003 to 133 million liters in 2004.
However, the reduction in domestic sales is not a result of lower
consumption of wine in Sweden. The main reason is the increased
cross-border shopping due to new private import quotas and lower alcohol
excise duties in neighboring countries. Starting January 1, 2004, Swedes
are allowed to bring home 90 liters of wine from other EU countries.

## Table 1. Swedish Private Alcohol Import Quotas (liters)

  ----------------- ------------- ------------- ------------ ------------
  **Year**          **2001**      **2002**      **2003**     **2004**

  Spirits           1             2             5            10

  Wine              26            26            52           90

  Beer              32            32            64           110
  ----------------- ------------- ------------- ------------ ------------

Please note that the consumption and sales estimates below are based on
Systembolaget's sales figures, i.e. retail sales only. In 2004,
Systembolaget's sales accounted for about 64% of total wine sales in
Sweden.

The interest in quality wine continued to increase at the same time as
the demand for bag-in-box wines continued on an upward trend, but not at
the same rate. In 2004, the bag-in-box and other soft packaging formats
accounted for a remarkable 61 percent of Systembolaget's total wine
sales compared to 57 percent in 2003. Bag-in-box wines are very popular
among Swedish consumers who find them particularly convenient for summer
activities such as picnics and boating excursions. Also, the bag-in-box
format is appealing because it overcomes the reluctance attached to
opening a bottle when all one wants is a single glass. Observers here
report that because of this convenience, individuals are consuming wine
more regularly.

Sales of red wine were down 2.1 percent from sales in 2003. Despite a
decline of 15.4 percent, Spain is the biggest supplier of red wine with
a market share of 20.8 percent. Italy fell back by 25.4 percent and now
has a market share of 18.7 percent. Australia and South Africa show
rises of between 35 and 40 percent, partly due to their bag-in-box
sales. Bag-in-box wines continue to increase their share, and accounted
for 54 percent of red wine sales in 2004.

Sales of white wine fell by 7.2% during 2004, of which 49% was packed in
bag-in-box. Germany continues to loose ground and had to step back in
favor of Italy. Sales of Italian white wines account for the largest
market share at 15.6% followed by Germany and South Africa.

Sales of strong beer (those beers exceeding 3.5% alcohol content) by
Systembolaget dropped by 3.5% in 2004 to 173 million liters. Swedish
brands accounted for 82 percent. Sales of beer in cans continue to
increase and accounted for 82 percent. It is mostly the younger
consumers who are increasing their beer consumption. Since 1996, prices
for strong beer have declined by 30% due to a reduced beer tax. Sales of
cider were down 12.9% from 2003.

Systembolaget's sales of spirits decreased by 13% in 2004 to 19 million
liters from 22 million liters in 2003. The consumption estimate for hard
liquor is based on Systembolaget's sales figures, but total consumption
is actually much higher. Because of the very high domestic prices,
Swedes take advantage of much cheaper alcohol in neighboring countries
due to their reduced taxation. The increased private alcohol import
quotas in 2004 have made it possible for Swedes to bring home
practically an unlimited amount of alcohol from other Member States. In
addition, illicit home distilling is widespread, and bootlegging is
extensive. Reports estimate that the illegal alcohol trade costs Sweden
about SEK 3 billion per year in taxes. Historically, vodka has been the
most popular alcoholic beverage and Sweden is part of the world's
\"vodka belt\". Now, however, Sweden is moving away from the vodka belt
and more and more becoming a wine country.

There has been a noticeable change in consumption of medium-priced wines
which indicates that the quality consciousness of consumers is
increasing. In 2004, over 30% of wine sales were in the range of SEK 61
to 70. Wines over SEK 100 accounted for 5.0% of total sales compared to
3.9% in 2003. Retail pricing through the Systembolaget is uniform
throughout Sweden, whereas restaurants and bars are free to set their
own prices.

## Table 2. Systembolaget's Wine Sales by Price Category in 2004 

  ------------------------------- ---------------------------------------
  Price level SEK                 Wines (excl. fortified wines)

  Less than 40                    0.3%

  40-49                           15.0%

  50-59                           24.9%

  60-69                           31.7%

  70-79                           13.6%

  80-89                           5.4%

  90-99                           4.1%

  over 100                        5.0%

  Total                           100%
  ------------------------------- ---------------------------------------

Exchange Rate 2004: US\$ 1 = SEK 8.07

## Table 3. Systembolaget's Sales - Liter/Capita

  ------------ ------------- -------------- -------------- ---------------
  Year         Liquor        Wine           Strong Beer    Cider & Mixed
                                                           Drinks

  2000         3.2           16.1           19.6           1.8

  2001         3.2           17.0           21.4           1.9

  2002         3.2           18.6           23.3           2.3

  2003         3.0           19.2           24.3           2.5

  2004         2.6           18.7           23.3           2.3
  ------------ ------------- -------------- -------------- ---------------

# 

# 

# Trade

Spain regained its position as Sweden's leading source of wine in 2004,
closely followed by Italy. However, both countries experienced sales
losses at the expense of the New World. Spain now controls about 18
percent of Sweden's table wine market followed by Italy, South Africa,
France and Australia. Even though EU suppliers still dominate, wines
from South Africa, Australia, Chile and the United States are gaining
market share. In 2004, the New World accounted for 36% of retail wine
sales in Sweden, an increase of 13% compared to 2003.

Retail sales of U.S. wines increased in volume in 2004, and market share
rose to 6.2% from 3.7% in 2003. Major reasons for the market share rise
is the considerably lower dollar, which made it possible to compete with
other New World wines. Lower-priced bottled wines are loosing ground to
bag-in-box wines. U.S. wine suppliers who can adjust to providing wine
in this type of highly demanded packaging might find greater success in
this market.

Please note that the table below shows Systembolaget's sales only and
does not include wines for restaurants and duty free shops.

## Table 4. Systembolaget's Sales of Wines by Country (1,000 liters)

+---------------------+-----------+----------+----------+-------------+
| Country             | 2002      | 2003     | 2004     | Mkt Share   |
|                     |           |          |          |             |
|                     |           |          |          | 2004        |
+---------------------+-----------+----------+----------+-------------+
| Spain               | 31,439    | 27,454   | 23,996   | 18.0%       |
+---------------------+-----------+----------+----------+-------------+
| Italy               | 28,627    | 28,311   | 23,106   | 17.3%       |
+---------------------+-----------+----------+----------+-------------+
| South Africa        | 5,999     | 11,172   | 15,184   | 11.4%       |
+---------------------+-----------+----------+----------+-------------+
| France              | 18,487    | 18,639   | 15,069   | 11.3%       |
+---------------------+-----------+----------+----------+-------------+
| Australia           | 7,287     | 11,011   | 13,666   | 10.3%       |
+---------------------+-----------+----------+----------+-------------+
| Chile               | 12,165    | 12,586   | 12,527   | 9.4%        |
+---------------------+-----------+----------+----------+-------------+
| USA                 | 4,345     | 5,110    | 8,329    | 6.2%        |
+---------------------+-----------+----------+----------+-------------+
| Germany             | 7,631     | 7,040    | 6,537    | 4.9%        |
+---------------------+-----------+----------+----------+-------------+
| Hungary             | 5,846     | 6,310    | 5,785    | 4.3%        |
+---------------------+-----------+----------+----------+-------------+
| Portugal            | 1,960     | 2,275    | 3,126    | 2.3%        |
+---------------------+-----------+----------+----------+-------------+
| Sweden              | 1,865     | 1,705    | 1,680    | 1.3%        |
+---------------------+-----------+----------+----------+-------------+
| Other               | 4,480     | 4,004    | 4,291    | 3.3%        |
+---------------------+-----------+----------+----------+-------------+
| TOTAL               | 130,131   | 135,708  | 133,296  | 100.0%      |
+---------------------+-----------+----------+----------+-------------+

# 

## Table 5. Import Trade Matrix -- Table Wine 2204, 2205 

U.S. wine exports to Sweden increased in 2004 to US\$ 8 million, from
US\$ 6.7 million in 2003, mostly due to the considerably lower exchange
rate for the dollar.

# 

  -------------------------- ----------------- ---------- -----------------
  **Country**                Sweden                       

  **Commodity**              Wine                         

  Time Period                CY                Units:     Metric Tons

  Imports for:               2003                         **2004**

  U.S.                       1,416             U.S.       1,623

  Others                                       Others     

  Italy                      29,597                       19,546

  Spain                      20,863                       17,106

  Denmark                    21,272                       16,173

  South Africa               10,882                       14,823

  France                     39,493                       14,371

  Chile                      11,476                       10,844

  Germany                    10,487                       10,077

  Australia                  7,498                        8,010

  United Kingdom             2,251                        2,691

  Portugal                   2,059                        2,691

  Total for Others           155878                       116,332

  Others not Listed          5,899                        7,314

  Grand Total                163193                       125269
  -------------------------- ----------------- ---------- -----------------

Source: UN Trade Data

## Table 6. Average Import Price -- Table Wine 2204, 2205 

  -------------------- ------------ ------------------------ ------------
  **Prices Table**                                           

  **Country**          Sweden                                

  **Commodity**        Wine                                  

  Prices in            SEK          per uom                  Liter

                                                             

  Year                 2003         2004                     \% Change

  Dec                  19.2         23.9                     24%

                                                             

  Exchange Rate        SEK 7.72     Local Currency/US \$     

  Date of Quote        1/19/2006    MM/DD/YYYY               
  -------------------- ------------ ------------------------ ------------

Source: Statistics Sweden

# 

# 

# Policy

In Sweden, the retail trade is separated into two different channels \--
ordinary food stores and Systembolaget, the liquor store monopoly. Beer
containing more than 3.5% alcohol and other beverages containing more
than 2.25% alcohol may only be sold through Systembolaget's liquor
stores. Systembolaget does not import directly; purchases are done
through Vin & Sprit or independent agents and importers.

Vin & Sprit, another state-owned company, was, until Sweden joined the
EU, the only legal importer and distributor of wine, spirits and strong
beer in Sweden. Since 1995, independent companies that have acquired a
special license have also been eligible to import, produce, trade and
distribute alcoholic beverages. This gives both the retail trade, (i.e.,
Systembolaget) and the restaurant and catering sector the right to
freely choose a supplier. More and more catering and restaurant
wholesalers have started to import and distribute alcoholic beverages.
Today there are over 600 companies that have an import license for
alcoholic beverages.

Because of Sweden's need to conform to more liberal EU regulations,
Sweden's strict laws regulating alcohol sales have been challenged in
recent years. Sweden has been facing EU demands on member states to
impose equal tax on wine and beer and increase private alcohol import
quotas.

Consequently, in 2001, the alcohol tax on wine was reduced by SEK 5 per
liter. Sweden was formally asked by the European Commission to stop
taxing wine, most of which is imported, at a higher rate than beer, most
of which is produced locally. To avoid a lawsuit, the Swedish Government
thus recommended a reduction in the wine tax. However, the EU has been
pushing the Swedish Government to make additional tax reductions in as
much as the excise tax on wine is still higher than the excise tax on
beer. In October 2004, the European Commission decided to refer Sweden
to the European Court of Justice over its tax discrimination against
wine in comparison to beer. Sweden imposes a tax of SEK 22.08 a liter on
wine, compared with only SEK 14.70 for beer.

A slash in alcohol taxes in neighboring Denmark and Finland, and the
entry of nearby Estonia, Latvia and Poland into the EU, has drastically
affected sales in Sweden as an increasing number of Swedes cross borders
to buy cheap alcohol. The Swedish Government is losing massive revenue
from the state monopoly, as domestic sales continue to decline. A
government commission has recommended a 40% cut in liquor duties, but no
final decision has been made.

## Table 7. The Swedish Alcohol Tax on Wines on January 1, 2005

+------------------------------------+---------------------------------+
| **Alcohol Content**                | **Tax (SEK/liter)**             |
+------------------------------------+---------------------------------+
| Not more than 2.25%                | SEK 0.00                        |
+------------------------------------+---------------------------------+
| 2.25% but not 4.5%                 | SEK 7.58                        |
+------------------------------------+---------------------------------+
| 4.5% but not 7%                    | SEK 11.20                       |
+------------------------------------+---------------------------------+
| 7% but not 8.5%                    | SEK 15.41                       |
+------------------------------------+---------------------------------+
| 8.5% but not 15%                   | SEK 22.08                       |
+------------------------------------+---------------------------------+
| 15% but not 18%                    | SEK 45.17                       |
+------------------------------------+---------------------------------+
| Liquor containing more than        | SEK 501.41                      |
|                                    |                                 |
| 22 percent alcohol by volume       |                                 |
+------------------------------------+---------------------------------+

Sweden adopted European Community directives on private alcohol import
quotas when the country's exemptions from EU rules expired on January 1,
2004. When joining the EU in 1995, Sweden negotiated a temporary
exemption from many of the European Union's more liberal alcohol laws.
As of January 1, 2004, Swedish travelers are allowed to bring home
practically an unlimited quantity of alcohol from other Member States.

However, under Swedish law, consumers are prohibited from using
independent intermediaries to bring alcohol for their private use into
Sweden from other EU countries. If Swedish consumers cannot themselves
physically transport the product into the country, their only option is
to request that Systembolaget bring it in on their behalf, which is time
consuming and expensive.

In October 2003, the European Commission formally asked Sweden to lift
the private import ban. In its reply, the GOS maintained that the ban on
private imports of alcoholic beverages was in compliance with European
law since it is an integral and non-discriminatory part of the Swedish
state's retail monopoly for alcoholic beverages and since it is
necessary for the protection of public health. The Commission believes
that an individual residing in Sweden should not be precluded from
purchasing products available on the market in other Member States and
has thus, decided to bring Sweden before the European Court of Justice.
The Commission believes that the ban represents a disproportionate
obstacle to the free movement of goods in contravention of EC Treaty
rules. A final decision has not yet been made.

The corruption allegations in October 2003 shook Swedes' confidence in
Systembolaget. A total of 77 employees at Systembolaget were suspected
of accepting bribes from suppliers pushing sales of certain brands. What
started in the beginning of 2003 with a handful of store managers and a
couple of suppliers being suspected of bribery, escalated quickly to the
most extensive corruption scandal in Swedish history in terms of number
of people involved. When the scandal extended to the headquarters level,
independent investigators were appointed.

The case was turned over to the public prosecutor and the first verdict
against 18 of Systembolaget's store managers was announced in December
2005. All 18 store managers suspected of accepting bribes were fined
between US\$ 375 and US\$ 2,500. This was the first of five trials
regarding the bribery scandal. The scandal has raised questions about
the future of the monopoly -- particularly because of the special
consideration that the European Union had given to Sweden in allowing it
to retain its government-owned retail monopoly.

In December 2005, Systembolaget celebrated its 50^th^ anniversary with
an advertising campaign to promote the benefits of the monopoly.
Reportedly, Systembolaget has spent about US\$ 960,000 on this campaign
to defend the retail sales monopoly in Sweden. The campaign was launched
on four fronts. A letter to European President Jose Manuel Barroso was
sent on November 18, 2005. A press release describing the public
relations campaign was issued on November 21, 2005. On November 22, the
website [www.DearMrB.se](http://www.DearMrB.se/) was launched featuring
"a short film showing the alcohol situation in Europe and how the
Swedish retail monopoly operates and the effects of it." On the same
day, an advertisement headlined, "Dear Mr. Barroso, Here's why you
should seriously consider cutting down on drinking" was published in the
Financial Times and some 70 Swedish daily and evening newspapers. The ad
points out that more than 600,000 Europeans die of alcohol-related
causes every year and the cost of alcohol-related problems for the EU as
a whole is between 200 and 500 billion euros per year. (See GAIN Report
SW5018)

Critics of Systembolaget have pointed out that the 50^th^ anniversary
campaign conveniently coincides with renewed efforts within both Sweden
and the EU Commission to erode the monopoly's power. Over the next
several months, the Swedish state monopoly will come under intense legal
scrutiny on several fronts.

As a member of the European Union, EU regulations regarding customs
tariffs and wine labeling are in effect in Sweden. Customs duties on
wines from non-member countries are the same as in the rest of the EU,
i.e. 13.1 euro per 100 liters for table wines, and 15.4 euro per 100
liters for fortified wines, or wines with an alcohol content between 13
to 15 percent.

On February 23, 2004, the European Commission published a set of
amendments to the wine labeling regulation. In an effort to conform with
its international commitments under the TRIPs Agreement, the EU has
adopted new conditions for the use of traditional expressions on wine
labels by third countries. More information is available in [GAIN Report
E24043]{.underline}.

On November 14, 2005, the European Council approved the US-EU wine
agreement, marking the end of a first phase in ongoing trade
discussions, which began in 1983. The Agreement addresses several key
issues, and sets a framework to facilitate future wine trade between the
United States and Europe. The agreement will enter into force as soon as
both sides amend exisiting regulations with the purpose of complying
with the different requirements of the Agreement. In order to avoid
disruption of trade, the EU and the US signed an Interim Agreement in
the form of an exchange of letters.

Please refer to the following website for more information on EU import
and labeling rules: [www.useu.be/agri/usda.html]{.underline}

# Marketing

There is a potentially strong growth market for quality wines in Sweden.
The considerably lower exchange rate for the dollar is fueling new
interest in U.S. wines. Exporters to this market should consider strong
market trends, such as bag-in-box and other types of soft packaging,
and/or developing trend-setting campaigns. With the dissolution of the
import monopoly, hotels, restaurants and caterers can import directly.
The continuation of the retail monopoly still makes retail sales more
difficult to develop, but the market is much more open and competitive
now than it was before. Additionally, advertising of wines in magazines,
newspapers and journals is now possible.

Until recently, direct advertising of alcoholic beverages has not been
allowed in Sweden. In March 2001, the Swedish legislation was challenged
by the Swedish food magazine Gourmet. The European Court of Justice
upheld the view that the ban was an obstacle to the free movement of
services within the EU. Sweden restricts alcohol advertising on public
health grounds. The European Court, however, suggested this could be
achieved with less restrictive measures and referred the matter back to
a Swedish court to decide whether the ban was an appropriate measure for
achieving Sweden's desired goal. In March 2002, the Stockholm District
Court upheld Gourmet's right to publish alcohol advertisements.

The Swedish Consumer Ombudsman was unhappy with the ruling and appealed
the decision to a higher court, the Swedish Market Court. A verdict from
the Market Court on February 5, 2003 cleared the way for alcohol
advertising in Swedish newspapers and magazines. The Court ruled that
the Swedish ban on alcohol advertising was too intrusive to warrant an
exception to European Union law. The decision was a heavy blow to
Sweden's rigorous policies to restrict alcohol consumption on public
health grounds. However, following the verdict, the Swedish Government
immediately decided to ban the advertising of alcoholic beverages
stronger than 15 percent by volume. The new law came into force in May
2003. The Swedish Government prepared a new strict legislation on
alcohol advertising that came into force on January 1, 2005. People are
not allowed to appear in the advertisement, which is also required to
include warning texts, and ads cannot target people under the age of 25.

The fact that no advertising has been allowed in public media has made
journalists writing about wines in newspapers and magazines more
influential than their colleagues in other countries. Wine writers'
weekly or bi-weekly newspaper and magazine articles are very popular,
and consumers act on the recommendations that are given in them. When a
certain type of grape or country becomes fashionable, Swedish consumers
tend to act upon these trends very rapidly. Systembolaget's monthly
tests of \"new products\" are reported on in these reviews.

Another means of advertising is Systembolaget\'s monthly news magazine.
This contains listings of the wines on Systembolaget's shelves and gives
detailed information about the wine and the region in which it was
produced. This information is stored in a database and is available for
all wines listed in Systembolaget's official price list which is updated
bi-monthly. In the December 2005 update, over 70 different U.S. wines
were listed. The Systembolaget list can be accessed through its homepage
at: [www.systembolaget.se](http://www.systembolaget.se/).

In January 2001 the Wine Institute opened an information office in
Stockholm. The Wine Institute promotes California wines through
participating in wine exhibitions and tastings, developing programs for
California winery tours, distributing promotional and information
materials and engaging in other market development activities.

There are several active wine societies in Sweden which promote wines
among their members, arrange wine courses, tastings, travel, and
generally promote wine appreciation. The most notable is Munskankarna,
which was formed 40 years ago. It has more than 10,000 members and has
branches throughout Sweden. Another prominent wine society is
Stockholm's Vinsallskap which is active in the Stockholm area. In
addition, there are a number of small, private wine clubs. Importers
also arrange small tastings. These smaller tastings are usually targeted
at restaurant managers, wine journalists and publishers of food and wine
magazines.

The major EU wine exporting countries, such as Spain, Italy and France,
hold annual wine days in Stockholm. Third country wine-producing
countries such as Australia, South Africa and Chile participate in most
wine exhibits in Scandinavia through their wine boards and annually hold
one‑day wine exhibits at one of the major hotels in Stockholm.