Small breweries in Finland face challenges due to new alcohol law changes

The new alcohol law that came into effect in June has surprised many small breweries in Finland. They have encountered challenges in getting stronger alcoholic beverages onto store shelves due to the inability to define a clear transition period before the changes. The Small Brewers Association had hoped for a couple of months of adjustment time.

Another unexpected development has been consumer purchasing behavior. Stronger drinks have sold better than anticipated, largely because the price difference between weaker and stronger alcoholic products has been less than expected. Samuli Huuhtanen, CEO of RPS Brewery in Kuopio, initially believed that higher alcohol taxes would lead to increased retail prices and that consumers would still prefer more affordable options.

“It must be admitted that the legal reform surprised us as producers,” he said. “We anticipated having excess stock this summer, but we expect to bridge the gap by the fall.”

Ismo Korhonen, marketing and sales manager at Iso-Kalla Brewery, notes that there is also a growing demand for non-alcoholic products. Although the new law has been in effect for only a couple of months, the direction is clear; RPS has already expanded its facilities, and Iso-Kalla is considering ordering larger brewing kettles.

However, Olvi’s CEO, Patrik Lundell, believes that the early experiences are too limited for drawing deeper conclusions. “We are particularly pleased that we could proactively create new products and were among the first to offer them on store shelves as soon as possible,” he added.

Esa Salminen, communication coordinator for the Small Brewers Association, sees challenges in the increased competition, especially with the introduction of so-called supermarket wines, which may hinder the availability of brewery products. RPS’s Huuhtanen acknowledges the importance of shelf visibility, stating, “It makes a significant difference. We are trying to engage with store managers about why our products should be placed at eye level instead of on the lower shelves.”