Response to interpellation 2024/25:433 on the introduction of farm sales
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
KD considers the proposal on farm sales to be a balanced reform that promotes local tourism and artisanal production without constituting an alternative to Systembolaget's monopoly 1 2. KD argues that the proposal is compatible with EU law and that restrictions on sales ensure public health 1 2. KD believes there is a great interest in small-scale production where customers can purchase a small amount of alcohol after a visit 3. KD argues that the proposal is not retail because the visit is at the center 3. KD considers that the proposal is welcomed by beverage manufacturers, the tourism industry, rural areas, and cities 4. V argues that the proposal threatens the retail monopoly and public health 5. V claims that there is great uncertainty regarding the proposal's compatibility with EU law and that it can be seen as a trade barrier 5. V considers the proposal to be a backdoor to overthrow the monopoly 6.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Socialministern Jakob Forssmed (KD)
Madam Speaker! Karin Rågsjö has asked me what reasons underlie my and the government's assessment that the retail monopoly is secured with the farm sale proposal when many experts, most recently WHO Europe, say the opposite. Karin Rågsjö has also asked me if I consider that there is an uncertainty regarding how the European Court of Justice would assess the Swedish farm sale proposal and the great risk it could pose for the Swedish retail monopoly, as well as whether I intend to take any measures based on my standpoint.
Through the proposal for an amendment to the Alcohol Act (2010:1622), a time-limited possibility for small-scale farm sales of alcoholic beverages is introduced. The purpose of the new rules is to improve the conditions for small-scale beverage producers by promoting local tourism and meal tourism. By introducing a requirement for participation in a tourism arrangement, farm sales are linked to the tourism industry.
The focus in farm sales is the artisanal production of beverages and the visitor experience, which shall have an educational element. By setting requirements that mean farm sales are clearly linked to the tourism industry and local production, it is ensured that the sales will be conducted in such a way and be of such a limited scope that they do not constitute an alternative to the retail trade that Systembolaget conducts. The reform is long-awaited and is expected to benefit the tourism industry throughout Sweden and open up for continued development of a growing industry, while public health is protected.
Alcohol consumption is associated with several different health risks. Therefore, in addition to the requirement for visitor arrangements, several limitations are proposed regarding the possibility of conducting farm sales. That the possibility of farm sales is limited to manufacturers in Sweden is also a prerequisite for a well-functioning supervision system that can ensure that the rules of the Alcohol Act are followed. Also, requirements involving limitations on how much may be sold to a customer per purchase occasion and during what times farm sales may be conducted limit availability and thus ensure a continued high level of protection for public health. The limitations reduce the risk of negative impact on people's health and lives and mean that the protection for children and young people is maintained.
The purpose of the reform is to promote local tourism throughout the country. At the same time, it means that consumers' access to alcohol increases. The proposal is therefore designed so that the purpose of the reform is achieved, while the high level of protection for public health is maintained by limiting the availability of alcohol.
Regarding Karin Rågsjö's second question, it appears from the bill that the government makes the assessment that the model for farm sales that is currently relevant is tested according to Articles 34 and 36 of the Treaty on the Functioning of the EU, while the retail monopoly is tested according to Article 37 of the same treaty. The risk that the government describes in the place that Karin Rågsjö quotes is not about the retail monopoly as such being called into question, but rather about farm sales in the form that the government proposes could be assessed as a trade barrier according to Article 34. The government's view is that the trade barrier in that case can be justified. The government therefore assesses that it is compatible with EU law to introduce small-scale farm sales while simultaneously protecting the retail monopoly.
The standstill period, that is, the period during which organizations and member states have the opportunity to object to proposals affecting the internal market, has expired, and the EU Commission found no reason to issue a statement.
Karin Rågsjö (V)
Madam Speaker and Minister! First, I would like, in passing, to say that vaccines really saved lives, given the previous debate.
I didn't see that coming – that KD would be the party that launched the farm sales. Obviously, KD has ended up in somewhat bad company, you who have always previously had a reasonable view on alcohol as just a public health issue, Jakob Forssmed.
Farm sales have been transformed into a question of market. It is about business issues instead of being a public health issue. Probably no one is going to get drunk at a farm viewing, and that is not what this is about. This is about the monopoly and Systembolaget and thus about public health.
The government's proposal to introduce farm sales in Sweden threatens, according to very many, the Swedish retail monopoly and thus public health. A starting point for the proposal on farm sales is that Systembolaget's monopoly is not threatened, according to SD and the government. It is, however, evident that there is still great uncertainty about how the government's proposal would affect Systembolaget's monopoly. This has also been emphasized in a number of referral responses. For example, the Council on Legislation has been involved in this – I will return to that – as well as the Cancer Foundation and the Children's Ombudsman. Furthermore, it has also emerged that in the Ministry of Social Affairs' own legal analysis of the proposal, it is confirmed that it threatens the monopoly.
At the beginning of February, WHO Europe released a new report highlighting both the monopoly's importance for Sweden's public health and that deviations from the monopoly in the form of farm sales undermine the monopoly's legal position.
The Council on Legislation has commented on the government's referral to the Council on Legislation regarding farm sales of alcohol. In the statement, it is noted that it is still uncertain whether farm sales are compatible with EU law. If Sweden allows farm sales, Swedish alcohol producers will obtain a new sales channel that manufacturers in other countries cannot utilize, and according to the Council on Legislation, this could be a prohibited trade barrier.
The market and a number of parties want more. They want to see a box of cheap red wine at Coop or Ica. The referral bodies, for example Svenskt Näringsliv, reject the time limit specified for the permit. Visita considers that the rules on farm sales should not be time-limited but should apply indefinitely. They want to go all in.
Portugal has chosen to take a stand by issuing a so-called detailed statement. In the statement, it appears that Portugal considers that the Swedish legislative proposal contravenes the existing Swedish monopoly for the sale of alcoholic beverages and that it creates obstacles to the free movement of goods on the EU's internal market, as well as that it constitutes a discriminatory and disproportionate measure in trade between Member States.
Another question also creeps in, namely the one about a trial period of six years. For me, this is completely incomprehensible – how is it supposed to work? Let us say that when all of this has been set in motion, it turns out that it does not work. How is one supposed to be able to withdraw it? That is also something I am interested in knowing.
I do not think I have received enough answers to be able to lean back and wait for the first round on the farm, so to speak.
Socialministern Jakob Forssmed (KD)
Madam Speaker! We have accounted for our proposal extensively in the bill that we have submitted to the Riksdag.
I want to start by saying that I welcome Karin Rågsjö's and others' engagement. We need to have a reasonable view on alcohol. It is also important to state that alcohol is not just any drink. It is a drink with extensive harmful effects in our society. It has negative medical and social effects. This is important to remember when designing policy and to constantly carry with you when making assessments.
That is exactly why our proposal for farm sales is, I would say, a moderately Swedish reform that takes into account what Karin Rågsjö describes: the importance of safeguarding the retail monopoly in Sweden. This is very important to us. I know it is also important for WHO, which highlights this in reports and elsewhere and looks at the Nordic models and what they have entailed in terms of reducing the availability of alcohol, for example.
I think it is important that we discuss this and also point out that alcohol is not just any ordinary commodity. That is why we have a very balanced proposal that we assess to be compatible with EU law and which we, just like the investigation that has examined the issue, also assess to have no major impact on public health.
What we do is create a sales opportunity in connection with a paid study visit, a lecture, a tasting, or the like. These are limitations that mean farm sales are not an alternative to Systembolaget's retail monopoly, but another type of sale, which takes place under special forms precisely so that farms or other producers who operate on a small-scale and artisanal basis can develop their business and also offer visitors the opportunity to purchase a small amount during such a visit here.
Our assessment is that this is compatible with EU law. An indication of this is also that the Commission, which has a specific mandate to oversee the treaty, did not issue any statement in connection with the freezing period we had regarding the bill. It is therefore an indication that they had no objections.
We would not present this if we did not feel confident that it does not pose any risk to the retail monopoly. Ultimately, it is of course a matter for the ECJ to decide on, but in that case, it is our view that it is the farm sales that will be examined and not the retail monopoly.
We have also chosen to make the legislation temporary precisely to have both reins and lifebelts in the context, as Karin Rågsjö also points out in her speech.
Karin Rågsjö (V)
Madam Speaker! But are there hordes of farmers and breweries who have demanded this? One might wonder. Have there been large demonstrations for this? No. Or are there other determined speculators in the matter, for example, the alcohol industry?
There are good opportunities today to sell products from vineyards and breweries at Systembolaget without risking the monopoly. The absolute largest part of the companies that will be allowed to conduct farm sales are breweries. The breweries are not located in cozy small places; they can be located in factory premises or warehouses and so on.
Thus the minister says in the response I have received: ”The focus in farm sales is the artisanal beverage production and the visitor experience, which shall have an educational element. By setting requirements that mean farm sales are clearly linked to the tourism industry and local production, it is ensured that the sales will be conducted in such a way and be of such limited scope that they do not constitute an alternative to the retail trade that Systembolaget conducts.”
It sounds a bit cozy anyway, but it will therefore be more breweries than vineyards that have farm sales, and they will be located in the large cities. Will families with children then be able to wander around with the children at the breweries? I find it very difficult to accept the whole thing. A soft path forward will be that the monopoly reduces the supply with reference to the fact that beer can be purchased at the so-called farm sales. It cannot be ruled out that Systembolaget completely removes, for example, the microbreweries' beer. This is a bit special – it might not be at its peak.
Systembolaget, Madam Speaker, has a uniquely strong position among the Swedish people. According to the national SOM survey 2022, Systembolaget has a growing trust among the Swedish people. A clear majority supports the company's sales monopoly.
The strong confidence in Systembolaget is linked to the fact that the negative consequences of alcohol use are smaller in a society where sales cannot take place at any time, anywhere, and to anyone. Systembolaget has also been a guarantee of enormous quality. It is possible to get hold of everything, but the sales occur without profit motives and without the aggressive marketing that can be seen in other countries. The mandate also includes taking responsibility for children and relatives of persons with alcohol problems.
The uphill climb that opponents to Systembolaget's sales monopoly have to overcome is hopeless. This has probably also meant that the only way is to not produce a sharp proposal to abolish the monopoly without taking the back way through farm sales. Farm sales are seen by many, including parties and others, as a step towards eventually pushing over the monopoly. This is very clear when one reads articles and when one observes who associates with whom and why in different cliques.
Sweden has an exemption from the EU's competition rules that makes it possible for us to retain Systembolaget. It is based on the premise that Systembolaget has the exclusive right to the sale of alcohol. If this is loosened, the criteria for the exemption will fall. Then we risk that Systembolaget is dragged down with it.
I believe that you as a government and you as the responsible minister, Jakob Forssmed, have made a deal with the market and that you in this way are gambling with public health, with Systembolaget and thus also with families who have problems with addiction as well as with their children. I am therefore very skeptical about farm sales, but that is clear.
Socialministern Jakob Forssmed (KD)
Madam Speaker! Thank you, Karin Rågsjö, for a speech that contained parts of my answer and also an excellent plea for why Systembolaget is good!
It is naturally about having a rigorous age check, that one removes a profit interest, and that one also has a mandate to limit the harmful effects of alcohol – which is very important – but also about the fact that one offers a wide range of alcoholic beverages, and also other beverages for that part, all around Sweden. It is a service that very many people appreciate, and not least also the smaller producers of alcoholic beverages in Sweden: microbreweries, farms, small and minor craft distilleries and other. They have Systembolaget as a very important sales channel. They do not want to lose Systembolaget's retail monopoly. It is clear when you ask them.
Karin Rågsjö says that there have been no major demonstrations for this. But there is still a great interest, one must say, among those who engage in small-scale, artisanal production, where customers attend events, tastings, or study visits. Then they shall be given the opportunity to buy a small amount of what they have tasted or learned more about. I believe this appears relatively reasonable to many.
Karin Rågsjö points out that Systembolaget should have the exclusive right to sales. Yes, but we also have restaurants that sell alcohol. My and the government's view is that this is a different way of selling alcohol than in retail. The whole thing is designed in such a way that it is not retail. It is not possible to slip by and buy a large quantity of alcohol at these places, but it is surrounded by requirements that mean the visit should be at the center. The visit shall be of a certain duration, it shall be paid for, it shall have content, and so on. I therefore simply do not believe that families with children would be able to slip around between the places and buy various things. But we will, of course, follow up and evaluate the reform as we go.
I am a warm supporter of Systembolaget's monopoly. I think it is very important, and it is also very appreciated by the Swedish people. It has been one of the completely decisive premises for the government when we have entered the work of preparing and producing the proposal that we should safeguard the retail monopoly but at the same time offer the possibility for small-scale and artisanal sales of alcoholic beverages in a context where the visit is at the center.
Karin Rågsjö (V)
Madam Speaker! Some debaters speak of this as a major freedom reform. It will be more about factory sales of alcohol than about farm sales, I believe. It is not the vineyards in Skåne that we will see, but it is cemented floors where beer is manufactured.
Freedom for me is the right to care based on need, strong equality work, and being able to, for example, contribute to influencing Sweden's development in different ways. Many want to allow farm sales if it can be combined with a preserved Systembolaget. This is evident from various surveys. Fortunately, very few do not think that Systembolaget is important to protect.
But as I have previously said, it is not we who own the issue and decide what will happen, but it is the EU that will have to assess whether we are now loosening the conditions for keeping the monopoly. We also know that the effects will be very large if the sales monopoly is abolished. I believe it would be very difficult to withdraw such a reform after six years.
The so-called farm sales have been marketed by being portrayed precisely as small-scale production on picturesque farms. There has been a great deal of talk about such things and about how it is to save the countryside. I find it very difficult to see that. The majority are breweries in towns and urban areas. The proposal contains nothing that particularly strengthens alcohol producers in the countryside, I must say.
We have chosen a model in Sweden, with the alcohol monopoly and Systembolaget, which has protected very many in different ways. The price will be very high, I believe, if this does not work. It is a gamble, and I still consider that you are dealing with the monopoly, Jakob Forssmed. I do not want to stand here and say "What was it we said?", and I may not do that. I really want this to go well, but I see the big, big problems.
Socialministern Jakob Forssmed (KD)
Madam Speaker! This is an issue that we have investigated for a very long time. I myself have been involved in appointing several inquiries during the Alliance period. Since then, we have continued to prepare the issue.
It has been complicated and difficult. It has been because the starting point for all this work, including the work that I and the government have now conducted very carefully, has been that we want to safeguard the retail monopoly while simultaneously meeting demand and opening up the possibility for smaller and craft-oriented production sites, where alcoholic beverages are made, to have a limited sale. I know that this is welcomed by beverage producers, the tourism industry, the countryside and also, of course, cities.
I want to emphasize once again that we have presented our EU law analysis. We believe that this is compatible with EU law. An indication of this was that the EU Commission did not raise any objections to our proposal during the standstill period. Should this eventually be tested in the European Court of Justice, we believe that it is the farm sale that could be overturned, not the retail monopoly. That is our opinion after the extensive preparatory work that has been carried out – with very good legal expertise, I would say – at the Government Offices.
We are not gambling. We do this to safeguard the retail monopoly, which is important for public health and to ensure that there is good service and access to drinks throughout Sweden. It is also very appreciated by smaller producers. But we also do this to offer people the opportunity, in connection with a visit to a farm or a production site otherwise, to purchase a small amount of alcohol of the kind they have just experienced a knowledge-enhancing seminar, a lecture, a tasting, or a guided tour around.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.