Alko

Infobox_Company
company_name = Alko
company_
company_type = Government enterprise
company_slogan =
foundation = 1932
location = Vantaa, Finland
key_people = Jaakko Uotila (President and CEO)
num_employees = 2,584 (2005)
products = Alcoholic beverages
revenue = profit 1,026.5 million € (2006)
operating_income = profit 61.9 million € (2006)
homepage = [http://www.alko.fi/ www.alko.fi]
industry = Alcoholic beverages

Alko is the national alcoholic beverage retailing monopoly in Finland. Essentially, it is the only store in the country which retails beer over 4.7% ABV, wine (except in vineyards) and spirits. Alcoholic beverages are also sold in licensed restaurants and bars to ages 18 and up. Alko is required by law to sell drinks with lower alcohol content than 4.7% and non-alcoholic alternatives, but in practice carries a very limited stock of low alcohol beer, cider and non-alcoholic drinks and mixers as supermarkets sell the same products at a lower price.

Products

As the only means to buy strong retail alcohol in Finland, Alko has an extensive range of products ranging from rare wines to bulk vodka. Its wine selection has grown in recent decades as there has been an increase in consumption and a government drive to change Finnish drinking habits to a more "European" style, which means a move from hard liquor to wine and beer. While wine consumption has increased, this has not replaced consumption of other alcoholic beverages, negating the "Europeanization" argument. Nowadays wines occupy most of the shelf space in an Alko shop. Its beer selection is concentrated on stronger versions of the domestic bulk lagers and some high-quality strong beers from major beer-producing countries as well as traditional Sahti at some locations. Hard spirits include several Finnish brands of vodka and all major types of hard liquor. Alko also sells brands of drinks produced by the Finnish state-owned company Altia, which are traditional products and not sold abroad. Many of these date back to the first products launched after the end of the Prohibition. These are usually for mixing drinks.

Legal status

Alko is a government-owned enterprise reporting to the Finnish Ministry of Health and Social Affairs. As of September 2007, it has 337 shops and 131 order points throughout the country. Under the Alcohol Act, it cannot have a window display, so it usually has just a display of wine glasses and catalogues. Alko can advertise beverages that contain up to 22% alcohol. In practice manufacturers or distributors, not Alko, advertise their products. Printed catalogues have information and prices for all products but Internet pages can show only beverages with less than 22% alcohol. However private individuals have published unofficial over 22% price lists on the Internet.

On the 3 February 2005, the Finnish Food Marketing Association (a pressure group of the country's supermarkets like K-Kauppa and S-Group) asked the European Union to challenge the legality of Alko's monopoly, which it disputes.

Products with under 22% ABV can be purchased by 18 year olds and up. The minimum age for products containing over 22% ABV is 20. When asked at checkout a young person must prove his or her age with an official ID (only a driver's licence, ID card or passport is accepted). Alcohol will not be sold to drunken customers or when there is a reason to suspect misuse or illegal supply to a person who would not be authorized to buy. It is also prohibited to enter an Alko if you are under 18, except if you are supervised by an adult.

History

During the years 1919 to 1932, the distribution and consumption of alcoholic beverages was forbidden in Finland. When the prohibition was lifted by the Finnish government in 1932 following a referendum, they created a company called "Oy Alkoholiliike Ab" which was fully owned by the government.

The first stores were opened on the 5th of April, 1932, at 10:00. (The date and time form the number 543210, still appearing in trivia quizzes.)

During the 1939-40 Winter War the company mass-produced molotov cocktails for the Finnish military, production totalling 450,000 units.

In 1969 the company's name was changed to "Oy Alko Ab". This company not only distributed, but imported and manufactured, alcohol.

In the 1980s, Alko switched from desk service to self-service.

In 1995, when Finland joined the EU, the monopolies in production and import had to be lifted. Thus, the corporation was separated into "Alko" (distribution), "Primalco" (production) and "Havistra" (bulk sales), which formed the "Altia Group"; only Alko retained a monopoly. In 1998, Alko was separated from the Altia Group, and is now entirely separated from it, although Alko continues to be the major customer of Altia. Altia Group (with Primalco and Havistra) was reorganized later to the current Altia.

Other alcoholic monopolies

*Systembolaget — Sweden
*Vinmonopolet — Norway
*Vínbúð — Iceland
*Provincial Liquour Crown Companies — Canada
**Liquor Control Board of Ontario — Ontario
**Société des alcools du Québec — Quebec
*National Alcohol Beverage Control Association — United States
**Pennsylvania Liquor Control Board — Pennsylvania

External links

* [http://www.alko.fi/ Alko - Official site] fi, sv, en
* [http://www.isokaato.com/hinnasto/ Isokaato.com, an unofficial price list included alcohol over 22%] fi