• Sweden edition

Wine Freedom - Vinfrihet

Raising a toast to a more competitive wine market

Systembolaget’s illegal activities risk community health

November 19th, 2011 by vinfrihet

We are Systembolaget’s largest legal competitor. Legal according to Swedish and EU law.

Systembolaget has a monopoly on retail store sales of alcohol in Sweden.

The past two weeks has proven that Systembolaget and their CEO Magdalena Gerger have no legal or moral boundaries when it comes to defending Systembolaget’s dominant market position.

Including breaking the law and trashing the reputation of IOGT-NTO the temperance organisation by using them as their goalkeeper and doer of dirty deeds.

10 days ago IOGT-NTO made headlines by reporting 3 German based tax cheats, our company and 6 other wine club operators for breaking the law. I didn’t like having our activities reported to the police and specially not lumped in with the German tax cheats whom they know the police have no jurisdiction over anyway.

Today DN has confirmed that Systembolaget and their lawyers were behind the IOGT-NTO police complaint. http://www.dn.se/nyheter/sverige/systembolaget-anklagas-for-att-ligga-bakom-polisanmalan

Some facts:

1. Systembolaget are the dominant market player and we their largest competitor.

2. Systembolaget wants to start home delivery and knows that the community health implications of doing this are HUGE.

3. Systembolaget tries to neutralise its critics to home delivery by galvanizing them against a benign force, the small companies selling quality wine, legally, home to wine appreciative Swedes.

4. As the dominant market players Systembolaget can not harass, attack or use anti-competitive behaviour against its competitors. Legal action against them will follow.

5. Systembolaget’s monopoly does not cover home delivery. If they start home delivery so can any other company from within or outside of Sweden.

Systembolaget, with the assistance of their goalkeeper friends at IOGT-NTO, are abusing their market position and breaking several Swedish and EU laws.

By pushing so quickly ahead with home delivery, unchecked by any government departments, they are being allowed to risk doing so much harm to community health their next step may as well be allowing in alco pops and bag in box vodka.

See www.antipodeswines.com to download our legal response to the police complaint.

Follow what The Local has written about the scandal. Have your say on my blog or on this article.

If you believe in Wine Freedom, don’t let them destroy what is good to do something bad.

Mark

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Home delivery of bag in box wine

September 20th, 2011 by vinfrihet

Regular readers of this little piece of cyberspace will be aware of the existential threats to Vinfrihet (wine freedom) over the past 7 years. One of the main protagonists was Anitra Steen, the former CEO of Systembolaget. She put so much energy into trying to destroy our company it is surprising she had time even to negotiate her huge pension payout!

If we are David to the monopoly’s Goliath, yesterday saw the big giant adopt the slingshot as their weapon of choice. If you can’t beat ‘em, join ‘em!

Systembolaget to offer home delivery of wine blazed the newspaper and TV headlines. Within a year they expect to offer home delivery of all their products for around 100kr delivery fee, according to their current CEO Magdalena Gerger.

The walk of shame would soon be a thing of the past. No longer would you have to endure clinking home on Friday afternoon or stand in a queue to get your 3L of Chill Out wine. Of course, paying a delivery fee of more than the cost of the product is not very thrifty but that is easily solved by ordering a whole case of 4 3L of Chill Out plus a carton of beer and a bottle of vodka at the same time. Magdalena promises delivery within a few days so if you order by Monday (I hope their web servers can handle the rush) the weekend is saved! It is much less embarrassing buying so much booze when it is home delivered!

Achieving a delivery fee of 100kr is a dream Ms. Gerger is going to wish she hadn’t talked about yesterday. We charge 190kr and this does not cover our costs. But I am sure the gnomes of Kungsträgården have considered this and will gladly subsidize the delivery fee as a public service. It should be cheap and easy to shop at Systembolaget, Ms. Gerger seems to be saying.

Ms. Gerger said that the monopoly must compete with companies such as ours that offer the home delivery service. I am flattered Magdalena, thank you, but a marketing professional as smart as you knows that our thousands of customers do not only buy from us because of the home delivery service.

Well Goliath, welcome to the world of e-commerce, customer service and giving customers what they want!
Cheers
Mark

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Writing to infinity

August 29th, 2011 by vinfrihet

As an entrepeneur it is interesting to study how companies differentiate their products or services. Wine producers try different grape varieties, play with the shape of the bottle (got to admire the cat shaped bottle right!), the label, the price and of course the wine making techniques.

As a wine club we differentiate by the service level offered. No one comes close to the level of personal service we give our customers.

Art is not usually a business area that attracts much of my attention and the product is so subjective and personal it must be really difficult to truly stand out.

When the weekly Economist magazine arrives I guiltily immediately turn to the back Obituary page. Not to take pleasure from the passing of great people but to read about the lives of often not so famous individuals who in the eyes of the anonymous Economist Obit editor is worthy of recognition.

Last week Roman Opalka was honoured with a remarkable piece and I am not embarassed to say I had never heard of him before.

The 79 year old Polish artist devoted 46 years of his life writing from 1 to infinity in increasingly lighter shades of grey on a white canvass (until it was almost white on white). After 233 canvasses (and little or not vacation drawing 400 figures a day) Roman made it to around 5.500.000 just short of his goal of infinity (he actually had decided to stop at 7.777.777 but never made it).

What is most inspirational for me is his focus, commitment and that he made a very successful artistic career out of a very simple concept. Incredibly simple actually. Just superbly and unwaveringly executed.

I can imagine the conversation in 1965 he had with the gallery that represented him: “Enough with the still lifes of fruit, now I am just going to draw numbers on a canvass. Start with 1 and keep drawing until infinity. Think you can sell that?”

Sometimes the most elegantly simple and superbly presented idea can be the most striking and attractive. We can often over-complicate our lives or give up on an idea too early. In my mind, part of the genius in his art is his persistence at doing the same thing, so well for so long.

I would rather have a crisp clean riesling made with as little interference as possible than a highly oaked and overly extracted wine that a meddling winemaker has sweated over, hiding the faults in the grapes.

Farewell to Roman, you never made it to infinity, but that was not the point of your life’s work, it was to count time and I can just imagine doing that staring at one of your canvasses.

Cheers to simple is beautiful
Mark

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Hard to explain

August 12th, 2011 by vinfrihet

Somethings are hard to explain to yourself, let alone to your curious kids. Three recent events have caused a bit of head-shaking.

Why why why we asked when reading about that poor 11 year old girl who was kicked off the SJ train to Göteborg a week or so ago because she supposedly has no ticket (her 22 year old sister had the tickets but was in the toilet at the time). Why didn’t she protest, why didn’t another passenger step in to help her, why didn’t the sister go looking for her, why didn’t the young girl ask someone to call her parents, specially the old lady who came to her rescue and gave her a meal and bed fo the night. And why did this saviour wait until the morning to call the police or the girl’s parents?

I asked our 9 and 11 year olds what they would do if they were lost from us: “Find another mummy or daddy and ask them to call you.”

What the bloody heck…..why are British police helpless when hooligans take to the streets to destroy people’s lives, homes and businesses? What type of society do the Poms live in where people have no respect for their neighbours, authority and the law and if they see a broken window of a store they are compelled steal something or set it alight.

Walking to our office today I saw a woman of around 70 years old walk up to the ATM machine on Karlavägen, take out the receipt someone had left there and throw it on the floor. I stopped, picked it up off the floor and put it in the bin 30 cm from the ATM. “You are brave” she commented. Why would someone litter their own streets and why not be ashamed when caught doing it.

How to explain the strange anti social behaviour of so many people!

Have a great weekend,
Cheers
Mark

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A fine summer it was

August 8th, 2011 by vinfrihet

It has been the longest most relaxed summer vacation since we moved to Sweden 10 years ago. In hindsight we should have stayed home in Stockholm if we were chasing the sun but our short 3-4 day trips south satisfied our need for the company of nearest and dearest.

Avoiding air transport this summer (for car and train) meant we could take our own wine and I am not embarrassed to say, my pillow. This has been a summer of Riesling Piemonte wines and either through luck or skill there have been many highlights and no disappointments. Understanding the German labels has helped avoiding matching a sweet wine with the sushi and the Barbera d’Asti and Barbera d’Alba were bargain finds among the smart Italians we drunk.

A work trip to Malta after mid summer had us staying at the Westin and when I called House Keeping to ask for a firm pillow I was referred to the “Pillow Menu” to select which of the 12 different ones I preferred (I think it was 12, could have been 22, one loses count of the different types of pillows after 3 – soft, medium and hard!). In Copenhagen at the Tivoli Hotel they had those soft flat pillows that substitute for those things you put next to doors to stop drafts coming in. When I called to ask for a firm pillow I was referred to the “Pillow Menu”. Just kidding, they told me soft flat was all they had! Given that the Tivoli hotel cost 3x the Westin in Malta I am glad we have our business meetings there and not in CPH.

Now we are working in our new temporary office in Gärdet, easily reached by buses 1 & 72 which has opened up a whole new world of public transport for me. Commuting from home and also between the offices is going to make my SL Kort bus card the best investment of this coming autumn.

Great to be back at work and face the exciting challenges of HT 2011.
Cheers
Mark

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Here there and everywhere

July 4th, 2011 by vinfrihet

Our head office could be in a worse location for this time of year when the weather is so unpredictable. So when part of our senior management team decamped to Malta last week for budget planning sessions (and a board meeting) a long day stuck inside was paid back bo a refreshing dip in the Med. The week after midsommar is one of the most under appreciated weeks of the year – summer vacation has not yet really started, most of the pre-summer tasks are completed so mind space can be made for planning for the year ahead.

When Christmas and summer vacations do not coincide (as I am used to) there are two rather than one major breakpoint in the year. Preparing for vacation is a major activity, everyone wants to clear their desk literally and figuratively. This summer desks are being packed up as we prepare for our move to a temporary office on Friday. The administration is departing Grevgatan 55 for Gärdet to give more space and air to the Wine Advisors and Customer Service teams.

It has been a hectic first half of 2011 with the market for the direct sales of wine growing exponentially. New competition has helped expand the market and raise awareness for our services as well as the enormous marketing reach of Bonnier for their own wine clubs. If there are no Euro financial crises, Japanese natural disasters and pending interest rate hikes in the autumn we expect the year to be another great one!

Soon it will be summer vacation time. Batteries to be recharged, books read, the to-do-around-the-house list ticked off and catching up with friends old and new!

Cheers!
Mark

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Summer party

June 16th, 2011 by vinfrihet

Tonight is the company’s summer party. Wine, food and entertainment is organised, just hope the weather is on our side as we optimistically will be outside!

After 7 years with APW James Overall is leaving to follow his heart and while ours is sad we are happy for him. So tonight we celebrate the summer, our past 6 months of success and salute James and his enormous contribution to our company’s development. He was employee number 1 and the only member of our management team to have left us in 7 years.

Time to don the summer clothes (and jacket) and head down to the party by the water!

Cheers
Mark

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Would I hire you again?

June 13th, 2011 by vinfrihet

What type of music will Jens play and will Miriam’s father-chef embarrass her catering for the company’s summer party on Thursday night? Fortunately Erika found the appropriate dress to carry out the duties of Toast Master confidently and Madelen is having a hard time managing the guest numbers as she keeps hiring new people.

The sprint to summer awakens the dormant social beast within us and planning the company’s summer party has been an important part of my work lately. Not that I am given much responsibility (the rest of the organising committee, it seems, think that my age disqualifies me from knowing how to put on a good party) but “trying” to help is important to me.

Knowing everyone who works at APW is top of my job description. Hiring them is a long and thorough process but I have to continually ask myself (and our senior managers) would we hire them again? And given the time over again, would they choose to work for us?

2kg is the result of my spring campaign to have lunch with every member of the APW team but some extra summer exercise is a price worth paying. What are we doing right, what can we do better, what are their career ambitions and does APW feature in them?

I may never eat grilled tuna caesar salad again (I really should vary the restaurant I go to) but I certainly would re-hire everyone again and they are also committed to the company and proud of their contribution to it.

Two concrete actions resulting from the lunches has been Niclas and Erik were transferred from Wine Advisors to Marketing roles, putting to use their university educations and bringing indepth and invaluable customer knowledge to our marketing activities.

Isabelle, Jonas and Gen have returned from their world travels to work as wine advisors, great to have them back on the team again.

I wish all of them every success in their new roles and am proud that they re-chose APW.

Cheers
Mark

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Full speed to summer

June 8th, 2011 by vinfrihet

Autumn is in the air with winter just around the corner. This is not Swedish weather pessimism, it is where my thoughts are now with all that is going on at work.

Last week we signed the lease for a big new office which if everything goes to plan we will move in 1st December. My new PA Susanna joined us June 1st and she can add relocation manager to her already long list of responsibilities. 50 people and two toilets is a mathematical equation that does not work so half of us will flytta (love that onematapaeic Swedish word) to a temporary office 1st July, in the same buliding in Gärdet where we will eventually all relocate and reunite.

There are 10 new people starting work between now and 1st September including two senior managers; a Purchasing Director and a Product Manager. We have been fortunate to attract two very experienced professionals who are taking the brave step from the monopoly controlled world to one where they are free to buy all the best wines they can find!

Summer in Stockholm is one of the best places in the world to be if the weather is good. So I don’t want to rush the summer away but there is lots to look forward to in the autumn and winter!

Cheers
Mark

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Rewarding job running a monopoly

June 3rd, 2011 by vinfrihet

Governments get criticised for the quality of the management of their corporations and what they are paid. The Swedish state still owns a few impressive companies such as Vattenfall, Vasakronan (indirectly through the 4 AP funds) and Systembolaget. The management is professional, experienced and paid market rate salaries. The difference being that Vattenfall does not have a monopoly on electricity supplies and there are a large number of large property owners and developers in Sweden. To attract the best management team from the respective industries their Boards’ compensation committees have a fairly easy time determining what the market salaries are and the performance targets.

The monopoly supplier of alcohol however has a professional management team, large social responsibility but no competition – how do you determine the market salary for a senior executive at a monopoly?

I have been interviewing a large number of senior wine industry executives lately for some very important positions in our company. What is most interesting is how frustrated many are with the Systembolaget process and how opaque it still is. All-powerful buyers acting without recourse to either their suppliers or customers behind a bureaucratic wall. The picture consistently given is of an organisation obsessed with naval gazing, perfection of internal processes and an institutionalised arrogance based upon its absence of accountability to any stakeholder other than its owner.

Given that this is an accurate picture it would be hard to set the market salaries for monopoly managers, how much should they earn?

Is 3,46 million sek a year a fair year’s pay for a CEO?
How much should the head of sales for a monopoly alcohol retailer earn? 3,28m sek is a lot of bag-in-box walking out the door. Is his performance incentive based upon how little or how much he sells?

The top 9 executives earned 22,777m sek in 2010.

There is a lot at stake running the monopoly. If it is badly run then public support for it will decline, undermining a pillar of the socialist state. If it runs too well and they sell too much, well that also undermines a pillar of the socialist state and the monopoly’s reason for existing.

I am sure Magdalena and her team could earn these salaries if not more in jobs in the private sector, but the question is whether they are paid these large sums to run a successful retailer or satisfy the conflicting demands of their owner and their customers?

I am happy to earn but a fraction of her salary but have a clear mission for our team!
cheers
Mark

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