- the Swedish way! AGENDA Why we exist and who we are How we work - - PowerPoint PPT Presentation

Satisfying the wine consumer

• the Swedish way!

AGENDA

• Why we exist and

who we are

• How we work
• Wine sales
• The South African

success

• The future

2014-05-20 3 Systembolaget Uppdraget Alkoholens avigsidor Svensk alkoholpolitik Alkoholpolitik i Europa Systembolagets forskningsfond

2014-05-20 4 Systembolaget

Our History

1850

First local monopoly

• n spirit

1919

Ration books introduced Monopoly including wine

1955

Ration book abolished Systembolaget as today established

1977

Beer > 3,5% included in monopoly

1991

First self service store opened

1995

Sweden joining EU Import monopoly abolished

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Our mandate:

To help limiting the harmful effects of alcohol

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Our mandate means:

• Limited access via
• Number of stores
• Opening hours
• Sales regulations
• No maximisation of profits
• r additional sales
• Brand neutrality,

transparency and equal treatment.

• Balancing responsibility

with service.

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Our vision:

A society where everyone can enjoy alcoholic drinks with due regard to their health and without harming themselves

• r others.

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Our business concept:

To sell alcoholic beverages responsibly while offering a first- class standard of service and sharing our knowledge of alcohol and health

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Systembolaget in brief

• 413 stores
• 500 agents
• 114 million customers/ year
• 4 900 employees
• Turnover SEK 23.3 billion
• 410 suppliers
• 3 100 articles
• 8 000 articles in ordering range

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Store formats

• Small stores
• Medium sized stores
• Large stores
• Superstores

Wine cellar stores Food Hall stores

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Key figures – opinion index OPI

10 20 30 40 50 60 70

2002 2003 2004 2005 2006 2007 2008 2009

AGENDA

• Why we exist and

who we are

• How we work
• Wine sales
• The South African

success

• The future

We consider…

8 trends

The ’ME’ brand Convenience

Product range strategy

Our focus:

• Consideration
• The environment
• Human rights
• Health
• Knowledge and expertise-

diversity with breadth & depth

• Inspiration
• Value for money

Brand neutrality Quality control Efficiency

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Product range structure

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Launch plan

Launch plan Request for tenders Tender examination Tasting and purchasing Sensory & laboratory Quality control Tasting for product descriptions Tasting for wine writers First order from stores Launch Lead time app 25 weeks

Purchasing process

Blind tastings

• 13 000 samples tasted
• ut of 18 000 tenders
• Best price/ quality ratio in

relation to specifications and taste profile as described in tender request.

• Brand neutral

Quality control

• To ensure that the same style and quality winning the

blind tasting also ends up on shelf.

AGENDA

• Why we exist and

who we are

• How we work
• Wine sales
• The South African

success

• The future

The market today

449 million litres 23,5 billion SEK

Wine sales/ category 2009

Volume share different packaging 2009

Volume old vs new world 2000- 2009

Volume share wine/ country 2000- 2009

AGENDA

• Why we exist and

who we are

• How we work
• Wine sales
• The South African

success

• The future

SA wine sales vs total (excl fortified wine)

Sanctions lifted- first wines in Sweden December 1993

• KWV Chardonnay 92
• Boschendal Grd Cuvée Sauvignon Blanc 92
• Nederburg Pinotage 90
• Meerlust Rubicon 87

Key success factors SA: 1. Conditions

• Climate giving full-bodied wines- in favour

by many Swedish consumers

• Several big, brand building export companies
• Flexible wine legislation English speaking
• Winemakers being customer driven
• WOSA understanding the potential

Key success factors SA: 2. Offer

• Over delivering on quality in both entry-

and premium segments

• Diversified styles
• Early on bag-in-box

Key success factors SA: 3. Swedish market

• Many importers early engaged in the SA wines
• High amount of press coverage- SA 20 mill. vs other

NW countries 2 mill. hits on Google.

• Systembolaget to follow customer

preference- many new launches.

• Transparent sales statistics
• Swedes travelling to SA- building

friendship

AGENDA

• Why we exist and

who we are

• How we work
• Wine sales
• The South African

success

• The future

The future

• Excellent service
• Customer segmentation
• Corporate Social

Responsibility

2014-05-20 39 Systembolaget

www.systembolaget.se

Customer segmentation

Cautious traditionalists (17%)

• Dutiful and traditional
• Only drink on special
• ccasions
• Women and men
• Over represented in the

60+ age group

Handicrafts Books Crosswords Music

38% 19% 12% 31%

Wine Beer Spirits Cider

Blokes who yearn to learn (8%)

• High interest in alcoholic

drinks

• Men aged 30-60,
• Beer is a major hobby
• Consumption during boys’

nights out, mostly beer and whisky

• Buy new products on each
• ccasion

TV Hunting & Fishing Motor sport Partying Gambling (horce-racing, lottery, poker)

26% 20% 5% 49%

Wine Beer Spirits Cider

Sophisticated connoisseurs (13%)

• Considerable interest
• Sociable, like organised

parties

• Men and women aged 50+
• Consume during meals with

friends, mainly wine

• Buy new products on each
• ccasion

Cooking Travel Sailing/Golf Culture Books

58% 18% 3% 21%

Wine Beer Spirits Cider

Unpretentious bon vivants (13%)

• Not that knowledgeable about

alcoholic drinks but keen to learn more

• Alcohol a large part of

everyday life

• Men and women 40+
• Reasons for consumption:

feels slightly luxurious and might have health benefits

48% 19% 4% 29%

Wine Beer Spirits Cider

Cooking Travel Sailing/Golf

Social experience seekers (10%)

• Young, inquisitive and enjoy

challenges

• Alcohol has a social context
• Women and men aged 18-30
• Reasons for consumption: to

feel more relaxed/exhilarated, to get drunk and get away from everyday life for a bit.

Fashion Eating out

34% 17% 13% 36%

Wine Beer Spirits Cider

Partying Music TV/Computer games

Healthy security seekers (13%)

• Not particularly

knowledgeable about alcohol but keen to try new things

• Appearance is important
• Women aged 20-39
• Buy new products each time

Working out Home styling

38% 17% 15% 30%

Wine Beer Spirits Cider

Fashion Eating out Partying

Folksy bargain hunters (13%)

• Traditional and do not stand
• ut
• Price is important
• Think that there’s too much

snobbery associated with wine

• Men and women 50+
• Consume in their leisure

time, mainly wine and beer. However, they drink more spirits than the average.

Clubs/ Associations Watching sports Music Books Travel

35% 24% 8% 33%

Wine Beer Spirits Cider

Multifaceted connoisseurs (1.4%)

• Alcoholic drinks are their main

interest

• ”They are expert allrounders”
• Men 50+
• Consume mostly wine, usually

during weekday dinners

• Buy new products each time

62% 17% 1% 20%

Wine Beer Spirits Cider

Clubs/ Associations Travel Cooking Sailing/Golf Culture

Those who don’t drink alcohol (11%)

Systembolaget customer satisfaction index- in comparison with other retail

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Social responsibility

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A Nordic monopoly co-opertaion on CSR

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Long-term commitment for a sustainable supply chain

2014-05-20 55 Systembolaget Vision & Affärsidé Etik & Värderingar Försäljningsregler Historia Nyckeltal Dotterbolagen Systembolaget i korthet

T hankyou!