Finland: Second-quarter beer sales drop 2%

The domestic sales of beer and other beverages continue to exhibit trends of change as the Finnish Brewers' Association releases its quarterly report. Member companies of the association saw a modest growth of 7.2 million litres, equivalent to 3.0%, in the sales of various beverages including beer, cider, long drinks, mineral waters, and soft drinks during the second quarter of 2023, the Helsinki Times reported.

In more detail, the report reveals that a total of 248.4 million litres of beverages were sold from April to June. Beer, a quintessential Finnish favourite, saw sales of 93.1 million litres, but experienced a decrease of 2.0% or 1.9 million litres compared to the same period last year. Similarly, cider sales amounted to 6.1 million litres, indicating an 8.3% decline of 0.6 million litres.

However, not all categories showed a decrease. Long drink sales surged impressively by 18.7%, amounting to 19.6 million litres. Furthermore, sales of soft drinks also experienced growth, totaling 90.7 million litres and showing a 4.4% increase of 3.8 million litres. Mineral water, another staple, achieved a 7.8% growth rate, with sales reaching 38.9 million litres.

A broader look at the trends within the industry reveals that while alcoholic beverage sales rose by 0.5%, sales of non-alcoholic beverages experienced a more significant increase of 5.4%.

Of note, the report underscores a continuing decline in beer and cider sales. The Finnish beer market has experienced a decline of more than 15% over the past ten years, whereas cider sales have witnessed a more significant drop of over 40% in the same period. Although the market for long drinks and other mild alcoholic beverage mixtures has expanded, the growth hasn't been as substantial as the decline in cider sales.

The Finnish Brewers' Association welcomes the planned reduction in beer taxes as a positive move. However, the association emphasizes the importance of avoiding tax increases on other beverages. If alcohol taxes must be raised, they advocate for consideration of supporting domestic production and employment in Finland. Additionally, there is concern that excessive taxation on other beverages might lead to consumers seeking alternatives from Estonia and aboard, potentially impacting both domestic beer and other beverage sales.

"Although the promise of lower beer taxes is encouraging, it's crucial to avoid raising taxes on other beverages. If such increases are unavoidable, they should take into account the domestic production and employment support in Finland. The risk of people seeking alternatives from Estonia and bringing back not only cider but also beer cannot be underestimated, especially given the higher taxation of beer in Finland compared to Estonia," emphasized Tuula Loikkanen, the CEO of the Finnish Brewers' Association.

The quarterly sales data presented in the report sheds light on the ongoing shifts in consumer preferences, which industry players will keenly monitor as they anticipate potential changes in taxation and market dynamics.

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