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ALCOHOL

Online booze shops refuse to cooperate with tax board

A number of suppliers of online alcohol have indicated that they will not release details of their customer's transactions to the Swedish tax authorities.

Online booze shops refuse to cooperate with tax board

The National Tax Board (Skatteverket) announced on Thursday that it plans to track down people who have failed to pay Swedish tax on alcohol purchased over the internet.

Within the next few days letters labelled ‘regarding alcohol tax’ will be sent out to around 6,000 people who failed to pay the tax. They will also be faced with a late payment fine of 1,000 kronor ($142) per order.

The board has managed to track down non-payers by contacting Spanish and German authorities and requesting them to gather order lists from a number of companies selling alcohol online.

According to the tax board, people who import alcohol to Sweden without paying taxes can be hit with the fine at any time up to six years after buying the alcohol.

But some companies quickly made it clear that they would not cooperate with the tax board.

“There is no way we are giving out any information about our customers, and the authorities can’t force us,” Kari Sjöblom, owner of Vinboden, told Dagens Industri.

According to Sjöblom, Vinboden’s turnover has increased by 40 percent over the last month, resulting in sales of 2.5 million kronor.

“We’ll take this to court if we have to. We are not obliged by law to give out this information,” he said.

Stefan Broberg from Sprit & Vin was equally reluctant to reveal customer details.

“We have not received a request and we do not intend to give out any information,” he told Dagens Industri.

The tax board however has said that it will continue with its current policy.

“What these companies say is up to them. We will get whatever information we can from any foreign authorities willing to lend us a helping hand,” the board’s Niclas Rönnberg told Skatteverket.

ALCOHOL

Why alcohol-free beer is having a moment in Sweden

Almost one in every ten beers sold in Sweden is alcohol-free, and it's young people in cities who are the biggest consumers. So what's driving the popularity of the booze-free beverage?

Why alcohol-free beer is having a moment in Sweden
Young people in cities are driving the trend for more alcohol-free beer. Photo: Vilhelm Stokstad / TT

The popularity of alcohol-free beer is growing fast in Sweden, thanks to technical progress which has improved both the quality and variety of the beverage. It was the drink category that saw the biggest rise in sales in Sweden during 2018, with a 41 percent growth, according to figures from the Swedish Brewers Association.

“We see an increase in all areas; [state-run alcohol monopoly] Systembolaget has increased its sales, restaurants now have more than one variety and the beer selection in supermarkets [where only drinks with an alcohol content below 3.5 percent may be sold] has become noticeably more interesting to consumers,” the association's CEO Anna-Karin Fondberg said.

Swedish brewery Spendrups, one of the major players in the market, has seen a 30 percent increase in sales of alcohol-free beer since 2018, and last year was a record year.

“It's a trend in society that we're turning to alcohol-free products more and more, but I think that more than anything it's about the taste,” commented Spendrups head of press Rose-Marie Hertzman.

“There is now a really good alternative for those who for some reason want to abstain from alcohol, and that has not always been the case. When we manufacture alcohol-free beer, we first make a strong beer [with high alcohol content] and then take away the alcohol, so you keep all the flavours,” said Hertzman.

Making beer free from alcohol is a complicated and expensive process, requiring manufacturers either to cut off the fermentation process or remove the alcohol afterwards. Alcohol is a flavour carrier, but modern techniques mean that it's no longer the case that alcohol-free beer means a flavourless drink.

Anna-Karin Fondberg of the Swedish Brewers Association agrees that product development has been important for the increased interest in alcohol-free beers.

“Swedish breweries got in there early and put a lot of resources into development, and it's paying off now. Consumers are choosy and alcohol-free beer today is a high quality product,” she said.

While the major breweries have played a part, a large number of microbreweries have started up over recent years, and helped draw attention to the wide variety when it comes to beer. This has meant that there are no longer only alcohol-free lagers, but also IPAs, ales, and porters. 

The biggest market for alcohol-free beer is young people living in Sweden's major cities, and as alcohol-free beer has risen in popularity, sales of low-alcohol beer or lättöl have fallen. Since 2018, more alcohol-free beers have been sold than lättöl, which has long been a popular choice for lunch and the only alternative outside Systembolaget's opening hours, and is most popular with middle-aged men.

Another of the reasons for booming sales of alcohol-free beer could well be an increased interest in healthy eating and drinking habits. While healthy food and exercise have long been important to Swedish consumers, and this has been reflected in sales figures within those sectors, there appears to be increasing attention paid to drinks and particularly alcohol.

“I think people want to drink different things at different occasions. We see in our surveys that many people don't only drink alcohol-free beverages, but earlier when someone for some reason didn't want a beer with alcohol, they would turn to water or soda,” said Fondberg.

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