Essay about Monopoly Norwegian

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BFJ 115,2

Monopoly and wine: the Norwegian case
M.B. Lai
Economics Department, University of Cagliari, Cagliari, Italy

314

A. Cavicchi
Department of Studies on Economic Development, University of Macerata, Macerata, Italy

K. Rickertsen
Department of Economics and Resource Management, Norwegian University of Life Sciences, Aas, Norway

A.M. Corsi
School of Marketing, University of South Australia, Adelaide, Australia, and

L. Casini
` INAS – Istituto Nazionale di Studi su Agribusiness e Sostenibilita, University of Florence, Florence, Italy
Abstract
Purpose – The 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/approach – The 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. Findings – Comparing 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/value – There 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. Keywords Norway, Wines, Alcoholic drinks, Government policy, Key informant technique, Distribution channels and markets Paper type Research paper
British Food Journal Vol. 115 No. 2, 2013 pp. 314-326 q Emerald Group Publishing Limited 0007-070X DOI 10.1108/00070701311302267

The research has been supported by the Sardinia Local Government through the program ` Master & Back “Il Sistema Agroalimentare Sardo e sue opportunita di crescita in Europa” and the Research Council of Norway through the program YGGDRASIL.

1. Introduction The Norwegian retail market for alcoholic beverages is controlled by a state monopoly. Wine and other alcoholic beverages above 4.75 per cent in alcohol content can only be bought in special government stores, called the Wine Monopoly (Vinmonopolet in Norwegian) or consumed in hotels, restaurants, bars, pubs, or catering firms, known as the HORECA channel. There are historical reasons behind the establishment of an alcohol monopoly. In the nineteenth century Norway faced major alcohol problems, and in 1921 the sale of alcohol was forbidden as the outcome of a referendum. The monopoly was established in 1922, and the ban was lifted, first for wine and later for spirits. Sales of alcohol are regulated by the Alcohol Act, which was passed in 1927, modified in 1986, and modified again in the 1990s after the Norwegian membership in the European Economic Area (EEA). The main purpose of the monopoly has, however, always been to limit consumption of alcoholic beverages. The monopoly has 262 outlets throughout…