Finland: Proposed alcohol reform could bring down strong beer prices and have great impact on consumer purchasing habits

If passed by Parliament, the Finnish government's proposed alcohol reform could have a great impact on consumer purchasing habits, YLE News reported on January 11.

According to a new report, the reform would lead to significantly lower prices for strong beer, a decrease in the amount of alcohol brought to Finland from Estonia by Finnish travellers, and an increase in alcohol consumption.

Supermarket shoppers could in future get stronger booze without visiting the state alcohol monopoly retailer, Alko.

Stores in Finland would be able to sell drinks containing up to 5.2 percent alcohol such as strong beer. The current limit for retail grocery sales is 4.7 percent alcohol.

That difference may sound insignificant, but a new Taloustutkimus Research survey commissioned by the Finnish Grocery Trade Association says the consequences could be great. It claims that retail prices for strong beers and ciders will drop by 40 percent. The survey also says that this will lead to an increase in alcohol sales, but owing to taxation differences beer containing 3.5 to 4.7 percent will become a more affordable option.

The reform will also make it less financially enticing for travellers to buy alcohol in neighbouring Estonia and cart it back to Finland.

Pasi Holm, research director for pollster Taloustutkimus, argues that when the price of strong beer drops in Finland, the price difference between Finland and Estonia will be halved, making it pointless to buy alcohol in Estonia and bring it back to Finland.

According to the report, alcohol consumption will increase by a mere half a percent. However, the National Institute of Health and Welfare has predicted a 6 percent increase in alcohol consumption should the reform go through.

Parliament will consider the law change in the spring.

10 January, 2017