The new bill, passed by the Finnish Parliament on 5 June 2024, allows beverages with an alcohol content of 5.5–8% ABV to be sold in retail stores, provided they are fermented. In contrast, similar products with a distilled alcohol base are confined to the state-run alcohol monopoly, significantly limiting their market access.
This bill unjustifiably discriminates against comparable alcoholic beverages based on their method of production, placing distilled products at a significant disadvantage. The measure extends the sale of fermented-base beverages to approximately 4,000 sales points, while restricting distilled products to just 327 monopoly outlets.
The European Commission, in its Notification 2023/543/FI to the Finnish Government on 15 November 2023, criticized the measure for being unsuitable, ineffective, and disproportionate. The Commission found that the scientific evidence cited by the Finnish Government to justify the bill on public health grounds was insufficient. Moreover, no fiscal justification was provided.
The European Commission's assessment clearly highlights the lack of a solid foundation for this policy. This legislation infringes on key principles of European integration, particularly the EU’s Internal Market and competition law, as outlined in Article 34 of the Treaty on the Functioning of the European Union (TFEU).
Concerns over the discriminatory nature of the bill are further supported by data from the IWSR database, which shows a significant market share for local, fermented-base ready-to-drink (RTD) beverages in Finland. While local brands make up about 75% of RTD volumes, imported RTDs, primarily spirits-based, have grown their market share from 17% in 2018 to 25% in 2022. The data reveals that 99% of imported RTDs are spirits-based, while the largest local brands are beer-based, underscoring the competitive disadvantage imposed by the new legislation.
We have been actively involved in the legislative process, submitting detailed comments during the TRIS process in 2023 and reaching out to all members of the Finnish Parliament's Grand Committee ahead of the amendment's vote on 29 May 2024. In addition, a letter has been sent to Finland’s Prime Minister, Petteri Orpo. Despite these efforts, the bill was passed, prompting the spirits industry to consider legal action.
We regret the adoption of this discriminatory measure, which not only lacks public health benefits, but also any economic rationale and we will closely monitor market developments and consider legal proceedings to challenge the law. This policy risks taxpayer’s money being wasted on potential compensation to producers and does not serve the interests of the Finnish people or their government in any way.
With this complaint, we hope to get the support of the European Commission as the guardian of the Treaty, but we are also willing to engage in discussions with the Finnish authorities to find a fair and non-discriminatory solution to the issues the Bill aims to address.
