Monopoly and wine: the Norwegian case

Abstract

PurposeThe Norwegian retail market for alcoholic beverages is controlled by a state monopoly. Wine and other alcoholic beverages above 4.75 per cent alcohol, can only be bought in government stores called The Wine Monopoly (Vinmonopolet in Norwegian) or consumed in hotels, restaurants, bars, pubs, or catering firms. The purpose of this paper is to provide an overview of the Norwegian wine market and present some of the major opportunities and constraints facing foreign producers.Design/methodology/approachThe objective of this article is twofold: first, to explain the role of the actors in the Norwegian wine market and second, to identify the market opportunities for Italian and other foreign producers. The organisation of the monopoly, the strategies wine producers may use to introduce new wines into the market, and the marketing levers that can be used to utilise the market opportunities are of special interest. The key informant techniques as well as official statistics are used.FindingsComparing the outcome of the authors' field research, done during the winter of 2010, with government statistics on wine consumption, it is clear that the competitive environment evolves daily. Consumers' tastes and perceptions play a crucial role in this dynamism.Originality/valueThere have not been many studies of the effects of the alcohol monopoly on the Norwegian market. Therefore, it is of particular interest to investigate the organisation of the Norwegian alcohol monopoly and how wine producers may successfully introduce new wines into this market. This paper makes a positive contribution to the literature in this field, giving some promotion strategies which could be achievable and could work in the Norwegian wine market.