General market information
To start working with the producers it is very important to know the market you are working for. A deep understanding of the market situation helps you to set goals to your work and also helps in the research.
Sweden is a Scandinavian country in northern Europe. Sweden is the third largest country in the European Union is terms of Area.
Population- 10,1 Million (2,3 Million have a Foreign background)
GDP- $542 million
Alcoholic beverage Market - In Sweden, 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 Sweden?
In Sweden, Systembolaget is the monopoly for wine distribution to 8 million Swedish end-consumers. Today Systembolaget is one of the world’s biggest retailers with over 400 stores and approximately another 500 distribution locations via partner stores covering all Sweden. Systembolaget’s range of selections consists of approximately 3000 different products all carefully selected via a strict purchasing process.
To work with the monopoly means to have a great opportunity and great responsibility.
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.
1) Product specification
2) Price point
3) Quantity demanded
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.
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 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 Systembolaget 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 has been submitted. Systembolaget 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 Systembolaget 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 Systembolaget as soon as the samples are received by the importer. The process is cancelled if the samples are unable to reach on time. Systembolaget does not accept the samples after the deadline.
About the tasting:
*Systembolaget 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 Systembolaget 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.
How to read a tender
*Please note: only available for wine products.