General market information
Finnland is a severeign state in Northern Europe. Finland's population is 5.5 million (2016), and the majority of the population is concentrated in the southern region.
GDP - $251.481 billion
Currency- Euro (€)
In Finland, there is an alcohol monopoly.
What is an Alcohol monopoly?
An alcohol monopoly is a government monopoly on manufacturing and/or retailing of some or all alcoholic beverages, such as beer, wine and spirits. It can be used as an alternative for total prohibition. They exist in all Nordic countries except mainland Denmark (only on the Faroe Islands), and in all provinces and territories in Canada except Alberta.
How does the monopoly work in Finland?
In Finland, the state owned monopoly is called ALKO, which was founded in 1932. Alko is tasked with the retail sale of beverages containing more than 4.7 % alcohol by volume.The only exception is local produced beverages that can be sold, by the farmer, but only with alcohol content maximum 13% alc. vol. Since Finland is a part of the Euro zone, Alko purchases and sells all products in euros.
Alko is an independent company owned by the Finnish state and administered and controlled by the Ministry of Social Affairs and Health.
ALKO has distribution network of over 350 stores and over 60 pick up points which cover the whole of Finland. Via the webshop, the range of more than 5,000 products is accessible to all Finns, with just a few clicks.
Age limit- In order to purchase and consume alcohol with an alcohol strength of 22 % alc. Vol. or lower, the age limit should be a minimum of 18 years. Apparently, in order to purchase and consume an alcohol beverage with an alcohol strength of above 22% alc. Vol, the age limit should be a minimum of 20 years.
Employees- 2500Marketing of Beverages with an alcohol content of 22% or more is not permitted. Moreover the marketing of alcoholic beverages with a less volume have many regulations and restrictions.
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Domestic Alcohol Policy - Finland
Tender Process Finland
What is a Tender?
Tender usually refers to the process whereby the government invites bids for large projects that must be submitted within a finite deadline.Therefore, tendering is a process of making an offer, bid or proposal or expressing interest in response to an invitation or a request for tender.Future tender offers are usually widely advertised to offer opportunities to a number of suppliers, encourage competition and provide a greater pool of offers to select from.Same happens in case of alcohol monopoly. The monopoly releases tenders which have a specific tender number. These tenders include all the information of the product and the requirement.
To understand what are the components of tender, follow the link (Link to read about Tender).
The tender process consists of 8 stages:
You as consultant play an important role in the first 4 steps of the process.
Understanding the requirement:
Finding the interested partners:
Handing over the information
The information you collected as a consultant has to be handed over to us. Our team will process the information and follow the further steps of the tender process. When you hand over the contact to us you should have the attachment filled out for each supplier contact which must be confirmed by supplier with a signature.
The information you share has to be in the given format as per the links above.
Step 5-9 page
The following page consists of the steps which will be performed after the information has been submitted. It is essential for you to know these steps. It not only helps in understanding the whole process of Alko but also will help you as a consultant to get informed about the tender process.
For example- When you establish a contact with a new supplier and the supplier asks you some questions to get some knowledge of the tender process. You can answer the questions as well as forward the pdf files to them.
It is crucial to provide the supplier the right information and make them understand the tender process. The tender process in these markets is not common and people are not very familiar with them.
The supplier must be informed that the process starts with a written proposal and involves the further steps. The purchase can only be made If the product wins the tender in the blind tasting.
On terms of the tender process, the written proposal is the first stage of the tender process. In order to apply for the tender, the offered product must match the requirements as mentioned in the tender. After this fulfillment the producer can apply for the tender through an importer.
The deadline for the written proposal is mentioned in the tender.
Make sure that what you intend to propose corresponds to what Alko is asking for. All the criteria are important although some criteria could be discussed, for instance, the price point. The producer can always ask questions regarding it.
The following information must be kept in mind:
After the written proposal form and the other documents have been submitted. Alko goes through the information and informs the importer whether they will like to continue the process and taste the product. In that case, samples are needed by Alko for a tasting.
The importer sends the information to the supplier about:
If something is wrong with the samples, the supplier is notified by the importer.
An email is send to confirm the receiving of package. The importer submits the samples to the monopoly.
For wine, the following information is important:
The samples are sent to Alko as soon as the samples are received by the importer. The process is cancelled if the samples are unable to reach on time. Alko does not accept the samples after the deadline.
*Alko always provides the characteristics (tasting profile) for each tender. The information can be found on the tender. The described characteristics (tasting profile) of each product must be matching the demand.
Declaration of Result and Feedback:
After the tasting, the result is sent by Alko to the importer. Other information which is provided to the supplier would be:
In this stage, if the product is selected, the supplier is notified and further information about the contract, date of launch etc is shared.
If a supplier is not able to win the tender, a feedback is provided by the importer. This is helpful for future tenders and gives knowledge to the producer about the market and the tender process.