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
Uppdraget Alkoholens avigsidor Svensk alkoholpolitik Alkoholpolitik i Europa Systembolagets forskningsfond 2014-05-20 Systembolaget 3
Our History 1919 1977 1995 Ration books Beer > 3,5% introduced Sweden included in Monopoly joining EU monopoly including wine Import monopoly abolished 1850 1991 First local monopoly First self service 1955 on spirit store opened Ration book abolished Systembolaget as today established 4 2014-05-20 Systembolaget
Our mandate: To help limiting the harmful effects of alcohol 2014-05-20 Systembolaget 5
Our mandate means: • Limited access via • Number of stores • Opening hours • Sales regulations • No maximisation of profits or additional sales • Brand neutrality, transparency and equal treatment. • Balancing responsibility with service. 2014-05-20 Systembolaget 6
Our vision: A society where everyone can enjoy alcoholic drinks with due regard to their health and without harming themselves or others. 2014-05-20 Systembolaget 7
Our business concept: To sell alcoholic beverages responsibly while offering a first- class standard of service and sharing our knowledge of alcohol and health 2014-05-20 Systembolaget 8
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 2014-05-20 Systembolaget 10
Store formats • Small stores • Medium sized stores • Large stores • Superstores Wine cellar stores Food Hall stores 2014-05-20 Systembolaget 11
Key figures – opinion index OPI 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2014-05-20 Systembolaget 12
AGENDA • Why we exist and who we are • How we work • Wine sales • The South African success • The future
We consider… Convenience 8 trends The ’ME’ brand
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
Product range structure 2014-05-20 Systembolaget 20
Launch plan 2014-05-20 Systembolaget 21
Purchasing process Tasting for First order Request wine writers from stores Tasting and for Sensory & purchasing tenders laboratory Tasting for Quality product Launch Tender control Launch plan descriptions examination Lead time app 25 weeks
Blind tastings • 13 000 samples tasted out 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 23,5 449 billion million SEK litres
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
www.systembolaget.se 2014-05-20 Systembolaget 39
Customer segmentation
Cautious traditionalists (17%) • Dutiful and traditional • Only drink on special occasions Handicrafts • Women and men • Over represented in the Books 60+ age group Crosswords 12% Wine 38% Beer 19% Spirits Music Cider 31%
Blokes who yearn to learn (8%) • High interest in alcoholic Motor sport drinks • Men aged 30-60, • Beer is a major hobby TV • Consumption during boys’ nights out, mostly beer and whisky Hunting & Fishing • Buy new products on each occasion Partying 5% Wine 26% 20% Beer Spirits Gambling Cider 49% (horce-racing, lottery, poker)
Sophisticated connoisseurs (13%) • Considerable interest • Sociable, like organised Travel parties • Men and women aged 50+ • Consume during meals with Books friends, mainly wine • Buy new products on each occasion Cooking 3% Wine 18% Sailing/Golf Beer 58% Spirits 21% Cider Culture
Unpretentious bon vivants (13%) • Not that knowledgeable about alcoholic drinks but keen to learn more • Alcohol a large part of Sailing/Golf everyday life • Men and women 40+ Cooking • Reasons for consumption: feels slightly luxurious and might have health benefits Travel 4% Wine 19% Beer 48% Spirits 29% Cider
Social experience seekers (10%) • Young, inquisitive and enjoy challenges Music • Alcohol has a social context • Women and men aged 18-30 Fashion • Reasons for consumption: to feel more relaxed/exhilarated, to get drunk and get away Partying from everyday life for a bit. TV/Computer games 13% Wine 34% Beer 17% Spirits Cider Eating out 36%
Healthy security seekers (13%) • Not particularly knowledgeable about alcohol but keen to try new things Fashion • Appearance is important • Women aged 20-39 Working out • Buy new products each time Partying 15% Wine Eating out 38% Beer 17% Spirits Cider 30% Home styling
Folksy bargain hunters (13%) • Traditional and do not stand out Watching • sports Price is important • Think that there’s too much snobbery associated with Music wine • Men and women 50+ • Books Consume in their leisure time, mainly wine and beer. However, they drink more Clubs/ 8% spirits than the average. Associations Wine 35% 24% Beer Spirits Cider 33% Travel
Multifaceted connoisseurs (1.4%) • Alcoholic drinks are their main interest Cooking • ”They are expert allrounders” • Men 50+ • Consume mostly wine, usually Travel during weekday dinners • Buy new products each time Clubs/ Associations 1% 17% Wine Sailing/Golf Beer 20% Spirits 62% Cider Culture
Those who don’t drink alcohol (11%)
Systembolaget customer satisfaction index- in comparison with other retail
Social responsibility 2014-05-20 Systembolaget 51
A Nordic monopoly co-opertaion on CSR 2014-05-20 Systembolaget 52
Long-term commitment for a sustainable supply chain 2014-05-20 Systembolaget 53
T hankyou ! Vision & Affärsidé Systembolaget i korthet Etik & Värderingar Försäljningsregler Historia Nyckeltal Dotterbolagen 2014-05-20 Systembolaget 55
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